Complex P2P processes are a thing of the past

NHS Shared Business Services

Gary Connolly

e-Invoicing Manager

NHS Shared Business Services

13 years experience in English NHS:

– Client on-boarding and Oracle Implementation

– Process re-design/Change Management

– P2P background

Presenter Background

Background to the NHS Shared Business Services

Department of Health & Sopra SteriaA unique joint venture

• NHS experienced people

• Financial Support

• Oracle EWA

• Unique 50:50 joint venture

• Commercial organisation

• Joint governance

• Customer focus

• Service optimisation

• Management & Business Development

• Offshore capability

• Commercial expertise

By 2015 NHS SBS

have saved the

NHS £224 million -

providing more

funds for front line

patient care.

Savings estimated

to be £1billion by

2020

NHS SBS – Our services

Finance and Accounting• 220 of Commissioning

organisations (100%)• 73 NHS Provider organisations

(approx 40%)• Over £170 billion of payments

each year• One of the largest Oracle Shared

Service Centre platforms in the world

Employment Services• 124 NHS clients• Paying 390,000 NHS employees• Processing 3.6 million payroll transactions

each year• Administering 250,000 pensions• Delivering registration authority services to

over 6,000 employees• Recruitment Services launched in 2013

Procurement• Delivered £350m in Procurement

savings opportunities• 52 NHS Provider clients• 409 associate members• CIPS accredited flexible procurement

service• Provider of over 120 framework

contracts to the NHS

F&A - P2P Landscape

7.3mNumber of invoices per year

£170bnTotal payment value per year

£14mRecovered debt for NHS organisations

570,000Answered emails

290,000Answered calls

350,000Suppliers in database

P2P Metrics & Improvements

Measuring Success & Improving

Metric Category

Key Metric Process Improvement

(Lean)

e-Invoicing

(Tech)

Client Performance

(User)

Time Invoice date to scan date

Time Scan date to ready to pay date

Time Ready-to-pay to paid date

Time Invoice date to paid date

Cost Cost per invoice transaction

Cost / Quality

Contact per transaction

Quality Right first time (quality)

Delivering Service Excellence through three areas:

LEANTECHUSER

Post room –LEAN Environmental

review

PO

ST

PO

ST

PO

ST

SCA

NN

ERS

PO

ST

PO

ST

Post room movement

PO

ST

800 hours saved per annum

Post room -LEAN Process review

Feeding the scanners in Portrait

Efficiency by simply turning the paper Landscape

Scanning time =

1.8 seconds

Continuing the LEAN journey across P2P

Value Stream Mapping the P2P Invoice Flow

P2P Processing before Pods

Moving to Pods

P2P Processing after Pods

Receipt

Paper Invoice

Process

Invoice Entered

Exception

Approval of Transaction

Payment

Transfer of funds

Receipt

Paper Invoice

Process

Invoice Entered

Exception

Approval of Transaction

Payment

Transfer of funds

The POD solution

POD’s created – silo removed

Measurable improvements

Reduction ininvoices

incorrectly sent tosummy supplier

Reduction ininvoices sent

back to supplier

Reduction inclient queries

Improvement inaverage 'scan toavailable' date

Reduction inaverage holds per

invoice

40%

50%

30%

27%

12%

Voice of the Customer (NPS)

A driving factor in all we do is how our clients feel about our service...

Since implementing the new Pod structure, we have seen an

increase in client satisfaction across all P2P areas.

Operational Efficiencies through LEAN recommendations

Benefit Efficiency Gain

End to end P2P process efficiency 10%

Reduction in customer contact 3%

Implementation of IT change requests 3-5%

Further Pod performance management uplift (5% for non-verificationsroles)

3%

Total19-21% Efficiency

Improvement

• Additional benefits linked to process redesign and reorganising the management structure have been omitted as they are not fully quantified

Look at the existing processes and make sure they are functioning

correctly

Expose your failings - Measure the right thing – measure and display

your failure not just your success

Align functions and break the silos - enable functions to work

together, drive holistic improvement and enable workload management

Nurture people to drive the change– involve in the design from the

start – they know it, you don’t!

Lessons , Hints & Tips

Moving to electronic invoicing (TECH)

e Invoice

Invoices - Receiving and processing

PO exists3-Way Match

Route

No PO existsRules Engine

Invoice unidentified

Return to Supplier or re-scan

Paper Invoice

Open and sort

invoices

Batched Invoices

Invoices put into batches for scanning

Invoice scanning

Invoice unidentified

3-way match

Non POInvoice

ApprovalProcess

Verification Team – Invoice identification (Brainware)

E-Invoice interface to system

Touchless Processing

eInvoicing

Pre-Validation

Status Updates

Dashboards

• Free for suppliers

• Open network that provides value for large, medium and small suppliers

• Modern UI and easy to use

Why eInvoicing and why Tradeshift

• Collaborative solution making it easy

to interact and communicate with

suppliers and other stakeholders

• Mobile device compatible

• Superior on-boarding methodology

• Extensible – ability to add new

business processes via apps

• Suppliers receive status updates on invoice progress granting them

visibility of their invoice through entire process

• Reduce likelihood of rejected or returned invoices due to missing data

• Suppliers save money

• Free to send invoices and credit notes

• Faster invoice processing time

• Promote a positive green agenda

• Prompt Payment Discounts

• PEPPOL Compliance

Benefits of eInvoicing

Recognised Benefits of e-Invoicing

Invoice Date to Scan Invoice Date to Payment Scan date to view

NHS SUPPLY CHAIN79% improvement for the

average invoice date to scan date

68% improvement on average invoice date to payment date

98% improvement on average scanned date to date available

in workflows

REED SPECIALIST RECRUITMENT LTD

80% improvement for the average invoice date to scan

date

58% improvement on average invoice date to payment date

39% improvement on average scanned date to date available

in workflows

Paper Paper Paper

Average invoice date to scan date

Average Invoice date to payment date

Average scanned date to available in workflow

3 14.1 13.3 42.4 0 2.9

5 25.1 20.3 48.4 1.6 2.6

Grand Total 4.4 22.1 18.2 46.6 1.1 2.7

E-Invoice On-boarding progress

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000Ja

n 2

01

5

Feb

20

15

Mar

20

15

Ap

r 2

01

5

May

20

15

Jun

20

15

Jul 2

01

5

Au

g 2

01

5

Sep

20

15

Oct

20

15

No

v 2

01

5

Dec

20

15

Jan

20

16

Feb

20

16

Mar

20

16

Ap

r 2

01

6

May

20

16

Jun

20

16

Jul 2

01

6

Monthly TS Invoice Count

Timeline and Milestones

January 2013

Integration with Oracle begins

September 29th 2013

First supplier invoice sent and received

August 2014

Total Invoice count via TS reached 50,000

October 2015Invoice count reaches

50,000 per month

September 2014

First GHX Supplier goes live

March 2016Invoice count reaches

80,000 per month

May 2016Total invoices received via

Tradeshift exceed £15 billion

June 2016Total Invoice count exceeds 1 million

invoices

Tidy your data first – poor data will inhibit your ability to on board

quickly

Engage with customers and suppliers at the earliest opportunity –

these stakeholders need time to change their perceptions

Concentrate on a quick wins e.g. highest volume suppliers or service

providers who can on-board multiple suppliers in a ‘wave’

Help your stakeholders adjust to change

Lessons , Hints and Tips

Working with customers (USER)

Client engagement calls

Expose current situation Highlight main concerns

Identify any patternsAgree improvement plan

Who are Client Performance?

Implementation

Training & Process

Improvement

VAT

• Enabling good F&A Business practice

• Conduct training needs analysis

• Training delivery

• Deliver training sustainability

• Deep Dive Process Reviews

What are Client Performance trying to achieve?

OperationsReduced issues and calls due to improved end user abilities.

Training and Process

Improvement

Process Efficiency

Enabled to do their job

Reduced issues

Client End UsersSkilled to perform their roles using SBS systems without frustrations. This reduced frustration should lead to increased NPS.

Process EfficiencyReducing rework and removal of unncessary tasks. Redisign of process to allow redirect of valuable resources

Understand the client, their objectives and their pain points

S how and expose opportunity to improve

Embed best practice across the client organisation

Reduce the need for users to contact you

Lessons, Hints & Tips

Conclusion

Conclusion

Look

Expose

Align

Nurture

LEAN

Tidy

Engage

Concentrate

Help

TECH

Understand

Show

Embed

Reduce

USER

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