Global Process Ownership

C1 – Unclassified | 04 May 2012 1 C1 – Unclassified | 04 May 2012 1

Global Process Ownership

elevating the value of Purchase to

Pay Activities Presented by Adrian Cooper – Global Process Owner

02 May 2012

C1 – Unclassified | 04 May 2012 2

Content

• Vodafone Background

• Finance Operations Vision

• Vodafone Shared Services Organisation

• Vodafone Finance Operations Governance Structure

• Global Process Owners Key Accountabilities

• Vodafone Finance Key Performance Indicators

• Electronic Invoicing

• Adding Value and Benefits

Vodafone Background


Vodafone worldwide

• As at 31st March 2011, Vodafone had 371 million

customers in its controlled and jointly controlled

markets

• 1 in 5 mobiles worldwide connected to a Vodafone

network

• India – largest market by customer numbers - more

than 134 million as at end of March 2011

• 6 million fixed broadband customers

• Evolution from pure mobile play to total

communications provider


Vodafone equity and brand footprint July 2011

Finance Operations Vision & Strategy


Finance Operations Vision

Vodafone Shared Services Organisation


Vodafone shared services delivery footprint

ca 6,000 FTE in 4 centres providing 30+ services

Hungary - Budapest: 800 FTE

• EVO: Finance Europe,

Vodafone Procurement

Company, HR

• Beyond EVO: IT, Supply Chain

Management, Commercial

India - Ahmedabad: 1,500 FTE

• International Call Centre Business

• Finance India

• Revenue assurance, credit &

collections

India - Pune: 1,400 FTE

• IT services

• International Call Centre Business

• Network services

• EVO Finance International Egypt - Cairo: 2,500 FTE

• Customer Operations

• IT Services

• 10% services to 3rd parties

Vodafone Finance Operations Governance Structure


Overall governance structure

Finance Operations Board

GPO Forum

Process Operating Committees

Operations and Projects

Supply Chain

Management

Record to

Report

Travel &

Expenses

Revenue

Assurance

Accounts

Payable

Dealer

Commissions

Lust to

Dust

Inter-

Company

Project

Management

Global

Process

Owners

Shared

Service

Centre

Local

Market

Prioritisation of projects

Ratification of demands

Setting of process roadmap

Operational delivery

Project Management

Subject Matter Experts

Coordination to Finance Operations roadmap

Process Governance

Stakeholder communications

Risk & Issue Escalation

Programme strategy & scope

Approval of major deliverables

Global Process Owners Key Accountabilities


Key accountabilities of the Global Process Owners

• Sets the vision and drives the strategic direction Vision & Strategy

• Sets targets and KPIs to meet business requirements Performance Management

• Owns and drives the design, implementation and execution of documented process standardisation Process

Standardisation

• Sets and maintains process level master data within global policy Process Level Master Data

• Monitors compliance and process performance Compliance

• Manages and drives change request approvals and the execution of process excellence and continuous improvement initiatives

Continuous Improvement

• Provides input to optimise the shared services organisation Right Location

Vodafone Finance Key Performance Indicators


Process keys performance indicators - global Current

Measure Hackett

World Class

Process KPI Type KPI / Business Parameter

(as at March 2012) Overall

World Class

Target

Vodafone

Best in Class Underlying driver(s)

Key Actions

(next 3 months: Apr – Jun 2012) Completion date

P2P

World Class KPI

PO raise time (6 working days) 95% 97%

a. Free text PO blocking

b. PO approval discipline

c. OPEX/CAPEX validation process

d. PO out of vendor price validity

a. Free text PO blocks fully

removed for DE, GH, GR, ES, IT

& PO (VPC trading).

b. Review PO approval steps and

lead times.

a. April ’12

b. June ’12

(pilot ES)

% of catalogue POs 80% 74%

a. Local markets with high share of

free text orders

b. VPC trading 87% / local buying &

agency 47%.

a. Carve out catalogue

management from local

markets

b. SCM workstreams to raise

share of catalogues

a. June ’12

(pilot ES)

b. Tbc

% of transactions on PO v. non-PO 80% 97%

a. PO exception lists inconsistent

b. Lack of discipline.

c. FI process available.

a. Create PO global exception list

b. Communication to final

vendors on no PO/no pay

policy.

c. Reporting of non-compliance.

a. June ’12

b. April ’12

c. April ’12

First Pass Yield 95% 95% Escalations & Training.

Standardise process for Goods Receipt

automations & escalations; training

module; “name and shame” reporting.

-

Paid On Time 95% 97%

Note: KPI measurement is not yet

including effects of SCF (Supply Chain

Financing)

-

Vodafone Challenge Area

No. of orders (POs) processed xxx tbd tbd

a. Lack of, or outdated, “how to

buy” guides

b. Asset accounting rules in

CBM/local requirements.

a. Refresh “how to buy” guides in

relevant categories

b. PO granularity stream volume

reduction & drive further

automation of processes.

a. June ’12

b. Tbc

No. of payment runs (in month) xxx tbd tbd Payment run reduction. Group Fin Ops

mandating to 2 payment runs per week. -

No. of non PO vendors xxx tbd tbd Analysis to understand vendor ‘types’ &

focus on reducing limited use vendor. -


Process keys performance indicators - local market

Process KPI Type

KPI / Business Parameter

VGS VPC

Central Northern Southern Western AMEAP

(as at January 2012) DE NL HU UK IE IT GR ES PT TU IN

P2P

World Class KPI

PO raise time (6 working days)

% of catalogue POs

% of transactions on PO v. non-PO

First Pass Yield

Paid On Time

Vodafone Challenge Area

No. of orders (POs) processed xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx n/a

No. of payment runs (in month) xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx n/a

No. of non PO vendors xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx n/a

Current Measure

Hackett World Class

Electronic Invoicing


Electronic invoicing – zero to 700k in 18 months

• CRITICAL SUCCESS FACTORS – Integration to Vodafone systems

– Tax Indemnity

– Vodafone suppliers already on their

platform

– Partnership model

– Commercial considerations

October

2011

January

2012

April

2012

October

2012

March

2014

RFI issued to

eight suppliers

RFP sent to

shortlist of four

suppliers Contract

signature

Go live with suppliers

in 41 countries (all

tax compliance

indemnified by

vendor)

Guaranteed 70%

of targeted

vendors on

boarded

Adding Value and Benefits


Global Process Ownership elevating the value of

Purchase to Pay Activities

There are many benefits derived from what we at Vodafone are doing, you will

find the top three below:

• Moving from labour arbitrage to skills arbitrage

• Creating a platform for deeper shared services organisation penetration into

the Finance Function

• Moving from Geographical support model to process support model

Questions:

Contact: Adrian Cooper

Global Process Owner – Purchase to Pay

[email protected]

0044 7785 665970

mailto:[email protected]

Global Process Ownership

Business

Transcript of Global Process Ownership