Optimize the Lifecycle of Payments to Insights

Webinar

Optimize the Lifecycle of Payments to Insights

through Technology & Process

Speakers

• Roger Poirier

Assistant Controller, La Quinta Management LLC

• Lilah Stone

Director of Financial Applications, La Quinta Management LLC

• Ramaswamy Subramanian

Head Global Operations -Datamatics Global Services

12/04/2013

11 AM - 12 PM EST

Agenda

• Introduction to the Panel

• What’s going on in the marketplace & how

is it affecting businesses

• La Quinta’s Journey to Excellence

• La Quinta Overview

• The Need for Change

• Our Recipe for Success

• LQ’s Partnership with Datamatics

• Datamatics Payment Solutions Overview

2

Digital = Mainstream

33

The Importance of Going Digital

44

Goals

55

Top Priorities

66

La Quinta A Journey to Excellence

• Headquarters: Irving, TX

– Approximately $900M Annual Revenue

– Privately held with over 8,000 employees nationwide

• Service Offerings

– One of the leading owner, operator and franchisor of select-service hotels serving the

midscale and upper-midscale markets through more than 800 hotels in the U.S., Canada

About La Quinta Inns and Suites

8

midscale and upper-midscale markets through more than 800 hotels in the U.S., Canada

and Mexico under the “La Quinta Inns & Suites” brand

• Culture

– People, Passion, Integrity, Excellence, Unique

– Excellence

• Do ordinary things extraordinarily well

• Good is not good enough

• Challenge the status quo

8

• The La Quinta creed:

– Make it better, faster and cheaper

• Accounting goals support Corporate goals through:

– Continuous improvement through process review and reengineering

La Quinta Accounting Goals

9

– Continuous improvement through process review and reengineering

– Focus on value added activities

– Eliminate unnecessary costs

– Evaluate and improve partnerships to achieve our goals

9

• Non-PO Based system

– Decentralized vendor relationship and invoice submittals/approvals

• Vendor

– Over 10,000 active vendors

– Terms = 30 days for non-exception vendors

• Paper Checks

– 68K checks per year (1,300 per week)

La Quinta Accounts Payable

10

– 68K checks per year (1,300 per week)

– Over $360M in annual spend

• P-Card Program

– Approximately 700 cardholders

– Over $16M in annual spend

• Virtual MasterCard Program

– Implemented in early 2013

– $60M in annual spend

10

• Department transitioned from San Antonio in 2007

– Little to no personnel transitioned

– Inexperienced staff with little historical knowledge

• Outsourced Accounts Payable process

– Contracted with software provider

– Processor (imaging and workflow) was outsourced

– Timing and compliance issues

– Overall lack of visibility to invoices

La Quinta Accounting – The Need for Change

11

– Overall lack of visibility to invoices

• Financials were impacted

– Downstream areas (Fixed Assets, GL) suffered

– High turnover within the first two years of transition

– Added headcount to combat problems

– Delayed close

• How could this have been prevented?

11

• Assess Business Processes

– Perform business process review

– Determine viable solutions

• Devise a Plan

– Consider other competing projects and resources

– Analyze the business impact

– Develop a realistic time line

Recipe for Success - Project Selection and Implementation

12

– Develop a realistic time line

• Select the Right Vendor

• Follow a Deployment Methodology

– Analyze Success Factors

– Change Management (Communication and Training)

• Monitor Results and take Corrective Action

12

• Implemented a new and improved outsourced AP solution

– Pre-coded invoices with SLAs tied to accuracy

– Required reduced timing of invoice processing with SLAs tied to compliance

– Customization of software catered to La Quinta’s specific needs

– Visibility to invoices as they “move” through the system

– Dynamic reporting of metrics and add hoc data analytics

La Quinta Partners with Datamatics in 2012

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– Significant reduction in cost

• A showcase project that realized the goal of making it Better, Faster and Cheaper!

13

• Other projects realized

– Virtual MasterCard to pay invoices timelier

– Flash reporting of expenses throughout the month rather as first reported during

close

• Allows for partnering on other projects (Future State)

Benefits of an Effective Partnership

14

• Allows for partnering on other projects (Future State)

– Automated franchise billing

– Automated account reconciliation

14

Process

�Payment

Management

�E-invoicing

w/supplier portal

Au

tom

ate

d�Receipts

Management

Going Digital: AP Invoice Automation Options and Strategies

16

Bus iness Object ives

� Invoice Scan +

Workflow

�Price compliance

�Discount

Management

Management

Reduce Costs Increase

Controls

Optimize Working

Capital

Strategic

16

Companies that automate accounts payable operate at 12%12% of

the costs of those that don’t

Companies that operate in an electronic environment capture

250% 250% more early payment discounts

Companies who actively leverage spend data and analysis in their

sourcing process have 67% 67% higher savings compared to those

Companies that automate accounts payable operate at 12%12% of

the costs of those that don’t

Companies that operate in an electronic environment capture

250% 250% more early payment discounts

Companies who actively leverage spend data and analysis in their


•

•

•

17

The Result


that don’t

Companies that automate accounts payable have an 11% 11% higher

contract compliance rate

Visibility of cost is improved by 52%52% in electronic environments


that don’t

Companies that automate accounts payable have an 11% 11% higher

contract compliance rate

Visibility of cost is improved by 52%52% in electronic environments

•

•

17

Datamatics Procure to Pay

Shared Supplier Network & Supplier Enablement ServicesInvoicesInvoices

Sup

plie

rsSu

pp

liers

Invoices

Sup

plie

rs

OrdersOrders

Bu

yers

Bu

yers

Orders

Bu

yers

Optimizing your Processes with Datamatics Procure-to-Pay

18

� Invoice Automation

� Automated Workflow

� Price Compliance

� Discount Management

Supplier Self Service Reporting/AnalyticsReceiptsReceipts

Sup

plie

rsSu

pp

liers

Receipts

Sup

plie

rs

PaymentsPayments

Bu

yers

Bu

yers

Payments

Bu

yers

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AP Processing

Invoice Routing and Approval

Payment

AP Processing

Invoice Routing and Approval

Payment

Supplier Questions

Mail Room Processing / Courier Costs

Data Entry / Re-Entry

Access for Auditors / 3rd Party

Supplier Questions

Mail Room Processing / Courier Costs

Data Entry / Re-Entry


The Total Cost of Invoice Processing

19


Explaining Disputes to Suppliers

IT Infrastructure / Maintenance / Support

Scanning

Document / Hardcopy Storage

Secured Disposal

Environmental / Green Charges

Data Retrieval and Reporting

Analysis / Best Practices

Discounts and Relationships

Compliance Reporting


Explaining Disputes to Suppliers

IT Infrastructure / Maintenance / Support

Scanning

Document / Hardcopy Storage

Secured Disposal

Environmental / Green Charges

Data Retrieval and Reporting

Analysis / Best Practices

Discounts and Relationships

Compliance Reporting

19

ePM – Complete Integrated Solution

20

Reporting & Analytics Snapshot

21

Datamatics FAS offerings

CFO Dashboards & Analytics

Spend AnalyticsProcure to

Pay

Managed S

erv

ices

Record to Report

Payment Solutions

Pay

Order to Cash

Managed S

erv

ices

Financial Services, Mortgage Exception Handling

22

Quality Certifications

Delivering

high quality

Certified for ISO 27001

HIPAA compliant

high quality at all times

SSAE 16 compliant processes

Certified ISO 9001-2008 (by DNV)

Certified SEI CMMI Level 3, V 1.3

23

[email protected]

ThankYOU

[email protected]

ThankYOU

Optimize the Lifecycle of Payments to Insights

Economy & Finance

Transcript of Optimize the Lifecycle of Payments to Insights