General Expenses Management
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Transcript of General Expenses Management
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8/12/2019 General Expenses Management
1/2General Expenses Management Retail Industry
Carrefours General Expenses Management Solution was built on the Enterprise Concept BPM framework and enablescost control and efficiencybased on establishing and implementing pre-defined expense typesand setting limits compliantwith the organisational policy, thus gaining productivity through standardization.
Enterprise Concepts Solution for General ExpensesManagement
Business Context
Prior to starting the collaboration with EnterpriseConcept, the staff at Carrefour had to manually updatespreadsheets to determine how much of their budgetwas remaining.
The company lacked a way to easily track purchaseorders and apply invoices against them.
The sheer volume of invoices Carrefour received madetracking and managing Accounts Payable a massivechallenge. Moreover, receiving both manually and someelectronically submitted invoices only added toCarrefours tedious process:
Time Consuming and Manually Intensive -Theaccounts payable process was very labor intensiveas the Accounting Department had to manually trackinvoices, enter data, and send the invoices to theappropriate supervisors for approval.
Lack of Visibility and Control -Carrefour lacked theability to monitor the progress of the payments
through the approval process. Moreover, they werenot able to identify trends such as cycle time andlacked the ability to see what financial obligationswere open and where the responsibility laid.
Error and Delayed Payment Prone -The manualpayment process was very prone to errors andmissed payments as accounting codes had to beentered by hand. Lacking a notification system fornew invoices and the status of approvals made thepaying procedures subject to delays.
Why Business Process Management?
Whilst The Accounts Payable Department had to trackdown missing purchase orders to match up to invoices,they had poor tracking of outstanding commitmentsagainst their budget and if some of the purchase orderswere duplicates or had expired or were no longeroutstanding, the commitment amounts were notaccurate.
As a result, Carrefour's goals for improvement were toensure appropriate authorization of expenditures,
monitor budgeted versus non-budgeted expenditures,and measure commitments against the budget and trackoverruns.
Subsequently, the company was in great need of asystem that provided basic functionality without beingoverly complex, was simple to set upand was flexibletohandle their specific needs and account structure.
Enterprise Concepts financial expertise and its strategicapproach to critical points of the Retail Business Modelusing the BPM Methodology have allowed the creation of
a viable solution that generated both a considerable ROIand complete process automation by designing the wayin which CareefoursOrders, Invoices and Receipts wereperfectly syncronized and orchestrated as such, whilstbeing instantly integrated into its systems.
The implementation of such a complex ExpenseManagement System addressed the issue of thesuppliers contribution to the development of the financialprocessas a whole, providing an integrated and mutuallybeneficial collaboration.
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8/12/2019 General Expenses Management
2/2General Expenses Management Retail Industry
Enterprise Concept Solution
The General Expenses Solution streamlined Carrefours entire Accounts Payable process, helping the company pay itssuppliers faster and strengthening its relationships with them. Carrefour can now see which suppliers theyre using forwhat more clearly, allowing them to be more strategic in getting the most out of those suppliers, as opposed to just lookingat individual buys every time.
Value Proposition Technical Architecture
Centralization and automation of all data related tosubcontractors, suppliers, invoices, accounting andprovisioning
Automating the process of bills and contractscomparisonby providing automated validationthrough the system
Integration with all existing Carrefour informationsystems
Enabling controls through a strong approvalsworkflow
Pre-defining the expense types and set limitscompliant with the organizational policy
Business Concept
The implementation of the Enterprise Concept Expense Management Solution was fast and efficient with Carrefour quicklyrealizing increased performance and cost savings. The BPM modules automated the following processes: Invoicing,Provision, Ticket Invoice, Provision Notification, Payment Notification.
Phases - Approach
1. Business Analisys
2. Invoicing Module3. Provision Module4. Reports
5. UAT6. Go LIVE
Benefits
Close cooperation with subcontractors
Standardization of products and services
Deployment of logistic solutions
Continuous cost reduction and 100% compliance with established processes
BEFORE AFTER NUMBERS
Return on Investment (ROI)
The Solution enhanced spend leverage and strategic sourcing saved 20 millionRON in fiscal year 2010.
The Solution also has enabled Carrefour to reduce its cost per order by 70%.
The Solution improved cycle and delivery time 5-7 days, and invoices that
traditionally took 30 days to pay are now paid in minutes.
It has improved user productivity and helped Carrefour achieve its goal ofshifting purchasings focus toward value creation and away from day-to-daytactical buying activities.
90% reduction in operating costs
COST of processing 1 order: 2,45EUR
Clearing orders team: 40 people
TIME for processing an incorrectorder: 60 days
TIME for processing a correctinvoice: 6 days
COST of processing 1 order: 0,55EUR
Clearing orders supervisors: 2 people
TIME for processing an incorrectinvoice: 7 days
TIME for processing a correctinvoice: 1.5 minutes
Resolved bill and contractcomparison - Store: 8,007,000RON.
Cost Savings Warehouse:10,009,000 RON
Sourcing Cost reduction:20,000,000 RON