Seamless Journey for A Requisition to Pay Process

SEAMLESS JOURNEY FOR A
REQUISITION TO PAY PROCESS
REALIZE YOUR
POTENTIAL

TODAY’S DISCUSSION:
Demonstrate the potential benefits of implementing a
procurement to claims service and the simplicity of managing
a seamless and integrated procurement process.
LEVERAGING PROCUREMENT TECHNOLOGY
TO ENHANCE CLAIMS MANAGEMENT
Value at Stake
Examining the Future State
STORYBOARD EXAMPLE:
INDEPENDENT ADJUSTER ESTIMATE
Workflow Overview
Vendor and Appointment Setup
Appointment Lifecycle
Finalizing Service
PROCESS MANAGEMENT
What is Needed to Build and Maintain this Process?
Copyright 2018 Accenture. All rights reserved. 2
AGENDA

LEVERAGING PROCUREMENT
TECHNOLOGY TO ENHANCE
CLAIMS MANAGEMENT

TO ENHANCE CLAIMS MANAGEMENT:
VALUE AT STAKE
Claims and
Procurement have
partnered to improve
loss ratios by 1-3%
(~$100M in savings)
through application
of price and demand
management value
levers across third-
party spend…
Based on Accenture’s experience, developing preferred third-party provider networks can result in a 1-3% improvement
in loss ratios for most insurers. However, many firms experience a 50% loss in benefit without complying to the parameters
of these networks.
TIME TO BENEFIT
Source: Based upon Accenture experience.
0
10
20
30
40
50
60
70
80
90
100
MILLIONSBENEFITYIELDED
Lack of Compliance Results From:
• Selection of supplier outside preferred network
• Incorrect level of supplier (e.g. VP vs. Manager)
• Effort not aligned with assignment (e.g. extra hours)
• Non complaint payment (e.g. invoice to PO match)
Lack of Compliance = Benefit Leakage:
• Selection of supplier outside preferred network
• Incorrect level of supplier (e.g. VP vs. Manager)
• Effort not aligned with assignment (e.g. extra hrs)
• Non-complaint payment (e.g. invoice to Purchase
Order match)
1
3
2
However, lack of
compliance to the
third-party
requisitions made
through the payment
process can help
reduce the loss ratio
benefits by 50% (aka
leakage) and put
insurers at risk…
Accenture and SAP®
Ariba® are partnering
to help Insurance
companies mitigate
leakage and reduce
risk by establishing
procurement
management
procedures within a
seamless and
integrated process.
2 31

TO ENHANCE CLAIMS MANAGEMENT:
HOW WILL TECHNOLOGY CHANGE?
Technology permits the implementation of a process that is established by Claims and Procurement collectively.
FUTURESTATECURRENTSTATE
Requisition to pay moves
from a manual process
that exposes leakage
and risk…
To an automated,
informed and eventually
predictive model…
Accenture and SAP®
Ariba® can show you
how they are changing
the game in claims
procurement technology.
PERFORMANCEREQUISITION ENGAGEMENT PAYMENT
Limited visibility into supplier
performance management
across lines of business;
lack of central dashboard.
Ad hoc selection, lacking
consistent selection criteria.
Results in quality, cost and
risk concerns.
Limited supplier engagement
controls and approvals
(unstructured agreement).
Invoices not being matched
against engagement details
or contracted rates prior
to payment.
Performance management
standards defined and
tracked on an ongoing basis.
Assignment of suppliers
based on selection criteria
(e.g.. past performance, price,
preferred status).
Template-based engagement:
rules and service expectations
defined / documented prior to
service delivery.
Standards defined to match
invoices against engagement
details and contracted rates
prior to payment.
ADJUSTERS
FIRST NOTICE OF LOSS
(FNOL) & ADJUSTERS
SUPPLIERS

STORYBOARD EXAMPLE:
ASSIGNMENT OF INDEPENDENT
ADJUSTER FOR ESTIMATE

SCENARIO: A claims adjuster needs to schedule an appointment with an independent adjuster to estimate the repair cost to a client’s packaging
machine. This workflow outlines the start to finish process used by the adjuster for setting up and updating the appointment, for the vendor receiving
the assignment through SAP® Ariba® and completing the appointment, and processing of the associated invoice.
USE CASE: ASSIGNMENT OF INDEPENDENT
ADJUSTER FOR ESTIMATE
Initial Vendor Set-up &
Appointment
Spend & Compliance
Reporting
Appointment Lifecycle
Service Completion &
Invoicing
• Set up vendor and contract
terms including pricing in
SAP® Ariba®. This is a one-
time activity effected when the
relationship is established with
vendors.
• Select independent adjuster
from list of preferred vendors
and set up appointment in the
claims system.
• Independent adjuster receives
assignment through SAP® Ariba®
Network.
• Independent adjuster
acknowledges the work order
and/or sends request for additional
services through SAP® Ariba®
Network.
• Claims adjuster approves
the request for additional services
and updates assignment in the
claims system.
• Independent adjuster completes
assignment and sends invoice
through SAP® Ariba® Network.
• Inspection report and repair estimate
are sent to claims adjuster
leveraging SAP® Ariba® Network.
• Invoice is validated against contract
terms in SAP® Ariba® and sent for
processing in claims system. An
exception is generated if there are
any discrepancies in the invoice.
• Payment is issued to vendor through
claims system.
• Claims adjuster reviews
monthly report showing spend
with all independent adjusters.
• Claims adjuster reviews report
showing contract compliance
based on contract terms and
actual spend.

1. VENDOR CONTRACTS SETUP IN SAP® ARIBA®
Once services and prices are agreed to with service provider (vendor), and contract is signed, the
contract compliance will be set up in SAP® Ariba®. This is a onetime activity for each vendor contract.
110 - USA
A&E ADJUSTERS
CHICAGO, IL

Contract details include contract terms, pricing terms and tolerance limits.
Vendor invoice will be validated against these contract terms for contract compliance.
2. CLAIM ADJUSTOR ASSIGNS SUPPLIER
A&E ADJUSTERS
A&E ADJUSTERS
CHICAGO, IL
ADJUSTERS

Supplier Appointment screen allows users to add new appointments and manage existing appointments.

Once users specify supplier appointment details,
users can select from a list of available vendors
from SAP® Ariba®.
Supplier Appointment lightbox allows users to
specify type of supplier and services needed.

Once supplier is selected, details and status of appointment are displayed on Supplier Appointment screen.
Selected supplier is added as a participant on claim; party details are created based on setup of vendor in SAP® Ariba®.

3. VENDOR RECEIVES AN
ASSIGNMENT USING LIGHT ACCOUNT
Vendors will receive interactive email with details of the assignment.
A&E Adjusters,
A&E Adjusters,
Valuation and
Estimate
Service acknowledgement or request for additional
services will be made by vendor using Order
Confirmation functionality in Light Account.
May require customization to meet claims requirements.
A&E ADJUSTERS
161 N. Clark St, Chicago IL 60061-0267
United States
A&E ADJUSTERS
United States

4. ADJUSTOR UPDATES ASSIGNMENT
If additional services are registered by vendor, claims system creates a task for claim adjustor to review additional
services and approve.

Existing supplier appointment will display updated status if additional services are registered by vendor.

Claim adjustor can update types of services
requested to reflect the additional services
registered by vendor.
Claim adjustor views updates to pricing based on
new services and can select alternative vendors
if needed.

5. VENDOR INVOICES VIA LIGHT ACCOUNT
Copyright 2018 Accenture. All rights reserved.
17
Vendors can create invoice from the interactive email received. The invoice will be matched
against contracted prices and can be rejected or updated by claims adjuster. If invoice is
updated, vendor will receive another email to confirm the changes.
A&E ADJUSTERS
United States

6. ARIBA CONFIRMS INVOICE MEETS
CONTRACTUAL RATES AND PASSES APPROVED
INVOICE TO THE CLAIMS SYSTEM
When supplier appointment is completed, vendor invoices through SAP® Ariba® with the procurement network automatically sending
invoice to claims system.

7. ADJUSTOR MAKES PAYMENT
Claims system automatically issues payment to vendor on claim based on invoice information.

PROCESS MANAGEMENT – BUILDING THE SYSTEM
WHAT IS NEEDED FOR A PROCUREMENT TO CLAIMS SYSTEM?
BUILDING
THE
SYSTEM
Claims Data Dictionary team, Claims
IT, and SAP® Ariba® team to set-up
catalog of available vendors, the
services they offer, and their pricing.
Claims IT and Claims Data Dictionary
team to incorporate new fields and
values into claims system.
Claims IT and SAP® Ariba team to
develop the services and system
configurations to integrate the claims.

PROCESS MANAGEMENT:
MAINTAINING THE PROCESS
WHAT IS NEEDED TO MAINTAIN A SEAMLESS PROCUREMENT TO CLAIMS SYSTEM?
SAP® Ariba® team to communicate frequently with vendors to maintain
accurate pricing and service information.
Establish update procedures for managing data between SAP® Ariba®
team and Claims Data Dictionary team, and to keep vendors / services /
pricing up-to-date and in sync with data in SAP® Ariba®.
THIS INCLUDES
Frequent communication
between SAP® Ariba®
and Claims Data
Dictionary teams.
MANAGING THE PROCESS
SAP® Ariba® team / Claims IT / Claims Data Dictionary team to implement
error handling and correction procedure if vendor appointments are created
with outdated data, as updates will not be immediate.
Manual updates or
technology-enabled
updates of vendors /
services / pricing.
There will be a
requirement to actively
manage production build
so values remain in sync.

MATT LEHMAN
Managing Director
Accenture Financial Services
matthew.a.lehman@accenture.com
NICK ARVETIS
Management Consulting Senior Manager
nicholas.s.arvetis@accenture.com
BRIAN SAUNDERS
Deal Execution Senior Manager
brian.c.saunders@accenture.com
SHIVANI DEO
Technology Consulting Manager
shivani.deo@accenture.com
SUSAN NEFF
Managing Director
Accenture Finance & Risk
susan.e.neff@accenture.com
ZORAWAR SINGH
Management Consulting Senior Manager
zorawar.singh@accenture.com
JONATHAN WICKSALL
Functional Strategy Senior Manager
Accenture Strategy
jonathan.f.wicksall@accenture.com
BRANDON HUNTOWSKI
Technology Consultant
brandon.j.huntowski@accenture.com
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FIND
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DISCLAIMER
This presentation is intended for general
informational purposes only and does not
take into account the reader’s specific
circumstances, and may not reflect the most
current developments. Accenture disclaims,
to the fullest extent permitted by applicable
law, any and all liability for the accuracy and
completeness of the information in this
presentation and for any acts or omissions
made based on such information. Accenture
does not provide legal, regulatory, audit, or tax
advice. Readers are responsible for obtaining
such advice from their own legal counsel or
other licensed professionals.
Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
ABOUT ACCENTURE
Accenture is a leading global professional
services company, providing a broad range of
services and solutions in strategy, consulting,
digital, technology and operations. Combining
unmatched experience and specialized skills
across more than 40 industries and all business
functions—underpinned by the world’s largest
delivery network —Accenture works at the
intersection of business and technology to help
clients improve their performance and create
sustainable value for their stakeholders. With
more than 442,000 people serving clients in more
than 120 countries, Accenture drives innovation to
improve the way the world works and lives. Visit
us at www.accenture.com

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