Is your accounts payable process so broken that 90 percent of your time is spent in reactive mode, fixing problems relating to orders and invoices? Attend this session and learn how you can eliminate invoice errors and exceptions with automation while empowering staff to focus on high-value activities such as managing supplier performance, enforcing contracts, and expanding early payment discounts.

1. Breaking Bad: How to Turn Your AP
Operations into a Center of Excellence
Chris Rauen, Solutions Marketing Manager, Ariba
Patricia Hutton, Vice President of Global Procurement, GAF
Dennis Glenn, Manager, Procurement Systems, GAF
#AribaLIVE
@ariba
© 2014 Ariba – an SAP company. All rights reserved.

2. The View from AP?
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© 2014 Ariba – an SAP company. All rights reserved.

3. Invoice Processing Performance:
Fair or Foul?
90:10
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© 2014 Ariba – an SAP company. All rights reserved.

4. Invoice Processing: What Can Go Wrong?
No requester name, contact data
No purchase order number
No order confirmation
No advance ship notice
Wrong supplier
Wrong price – quantity
Exceeds contract total amount
Missing tax amount or Tax ID#
Net amount exceeds sub-total
Missed early payment discount
What invoice?
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© 2014 Ariba – an SAP company. All rights reserved.

5. The Path to Touchless Processing
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© 2014 Ariba – an SAP company. All rights reserved.

6. The Path to Touchless Processing
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© 2014 Ariba – an SAP company. All rights reserved.

7. The Business Case for Success
It’s as easy as 1+2+3+4 = $10M /$1B in Spend
CHALLENGE
1. Process
2. Discount
3. Working
Capital
4. Compliance
OPPORTUNITY
“1-for-1”
60-80% cost take out – or about $1M per $1B in spend for average to
large Payables and Procurement organizations
“2-for-1” for every $1B in discountable spend
$2M+ in discount savings
“3-for-1”
$2.7 million in working capital impact for every $1 billion per day of improvement
of DPO, DSO, DIO
“4-for-1”
$4.6M in contract leakage savings for every $1B in spend under contract
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© 2014 Ariba – an SAP company. All rights reserved.

8. About GAF
•
Largest roofing manufacturer in N. America
Founded in 1886 – HQ in Wayne, NJ
$3 billion in sales – 23 plant locations
•
Broad industry recognition (Named – Rated #1)
Shingle quality by contractors and home builders
Innovation for shingles and ridge ventilation by home builders
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© 2014 Ariba – an SAP company. All rights reserved.

9. Business Challenge
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GAF is a lean organization
AP moved to an external invoice processing system
Reduced AP headcount
New system touchless processing rate was at 8%
Pushed more invoice processing to Buyers
Further increased transactional activities of Buyers
•
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Result: Procurement handled problem invoices
© 2014 Ariba – an SAP company. All rights reserved.

10. Business Challenge (continued)
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Too many resources expended on transactional activities
Diverts focus from buying activities
•
Interest in reducing rogue spend
Drive to national contracts
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© 2014 Ariba – an SAP company. All rights reserved.

11. Business Goals
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•
•
•
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Free up procurement to drive strategic buying
Maximize spend with key suppliers to lower prices
Expand use of catalogs and extend purchasing to
casual user
Check-to-ACH payment initiative
© 2014 Ariba – an SAP company. All rights reserved.

12. Solution Approach
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Ariba Network Adapter
Connect Maximo and PeopleSoft systems to Ariba Network
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Ariba PO and Invoice Automation
Automate PO delivery from Maximo/PSOFT to Ariba Network
Smart invoice business rules for automatic validation, touchless
processing
PO-Flip® for perfect payable
•
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Ariba Procurement Content
© 2014 Ariba – an SAP company. All rights reserved.

13. GAF Environment
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© 2014 Ariba – an SAP company. All rights reserved.

14. Results
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•
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From 8% to 67%+ touchless invoice processing
Automate 60% of MRO transactions, 80% of Maximo spend
Ease of use – plant stores personnel, casual users
Enforce compliance – better spend management
Dramatically reduced rogue spend
Lower pricing from higher spend volume with select suppliers
Improved supplier relationships
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© 2014 Ariba – an SAP company. All rights reserved.

15. Vendor Managed Inventory – MRO
Vending Machines
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Legacy process – Blanket P.O.
Monthly summary invoices with line item details as attachments
Time consuming – manually reconciled
•
Now, supplier posts quote in Ariba Procurement Content
Punch out to vendor and turn quote into detailed, line-item P.O.
Automatic P.O. – invoice match
100% straight-through processing!
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© 2014 Ariba – an SAP company. All rights reserved.

16. Next Steps
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Extend automation to direct materials spend
Increase touchless processing rate to 80%+
Expand system access to new users
Drive more savings by consolidating spend
Continue check-to-ACH conversions
© 2014 Ariba – an SAP company. All rights reserved.