You have thousands of documents to send to the right person out of thousands of staff across many different countries. Using a manual approach to get all signatures required for an invoice to get paid or an expense approved and reimbursed is a logistical nightmare. In this presentation from The Accounts Payable Tech Summit 2011, given by Jurgen van Eetvelde, Manager Finance & Transactions at USG People, shares how USG has implemented the Arco registration and payments system across 20 legal entities (with just 6 AP staff) to eliminate this hassle so you can: • Read different types of invoices with advanced recognition technology • Set up a complex authorisation matrix to ensure your invoices are paid on time • Integrate invoice handling, approval and payment with your staff expense reporting and reimbursements

1. AP Tech Summit 2012
Jurgen Van Eetvelde
WE KEEP THE WORLD WORKING BY HELPING
THE RIGHT PEOPLE FIND THE RIGHT JOB

2. Content
1. Who is USG People ?
2. Accounts Payable history at USG People, our “Baseline”
3. Our “Challenges”
4. The “Solutions” we chose
5. How far did we get ? The “Results”
6. Critical Succes Factors
7. What’s next ?
8. Q & A
07 09 2011 AP Tech Summit 2012

3. 1. Who is USG People ?
USG People is a specialized provider of employment
services in Europe, focusing on the market segments
general and specialist temporary employment,
professional secondment and projects, HR services and
customer care. We provide this range of services through
our independent operating companies. Our companies
are active in ten European countries: Austria, Belgium,
France, Germany, Italy, Luxemburg, the Netherlands,
Poland, Spain and Switzerland. USG People shares are
listed on the stock exchange NYSE Euronext
Amsterdam.
Each day we employ +/- 80.000 people through a
network of +/- 7.000 co-workers in 1.200 offices in 10
countries.
This makes us the 4e largest player on the European
market.
In Belgium we have +/- 25 legal entities, all supported by
a single Shared Service Center.
07 09 2011 AP Tech Summit 2012

4. 1. Who is USG People in Belgium ?
Shared Service Center
figures :
We offer centralized services for 25 Belgian sister-legal
entities (our “internal customers”), providing financial,
legal, operational support.
We employe 160 people at the SSC, working in 15
different departments Key
Our mission is to provide highest quality to our clients at
lowest cost, key words : “Innovation, Automation,
Expertise, Business Partnership, Cost Efficiency”
07 09 2011 AP Tech Summit 2012

5. 2. Accounts Payable history at USG People Belgium
Our “Baseline”
2007 :
- 50.000 supplier invoices
External Suppliers
- 4000 diff suppl
- 5.000 internal expense accounts
- 25 customers (sister opco’s)
invoices
payments
- 8 headcounts
payments
Customers Employees
- 25 legal entities SSC BE - 1200 HC
communication exp acc All treated in a manual way, causing :
reportings
- Transport
data transfer
- Waiting
External parties
- tax administration
- banks - Moving
- other governement authorities
- Overprocessing
- Defects
07 09 2011 AP Tech Summit 2012

6. 3. Our “Challenges”
- Maximize efficiency (automation)
- Maximize accuracy and speed (avoid provisions) : 15 mio €/year
- Lower operational costs : 14 €/doc
- Avoid loss of documents
- Minimize discussion with our customers : 8 % errors
- Comply to corporate delegation rules (authorisation payments)
- Avoid taxrisks
- Avoid financial risks
- Optimize cash planning : + 10 % deviation plan/actual
07 09 2011 AP Tech Summit 2012

7. 4. The “Solution” we chose
Assess & Redefine our processes
PO Flow POs DMS : ARCO
Invoice Flow Invoices OCR DMS : ARCO Authorisation
General Ledger
1. Daily treatment of invoices (scanning)
2. Daily treatment of PO’s
3. OCR recognition (Kofax) : +/- 90 % recognition
4. Validation (+ correction), match PO
5. Interface to ARCO (Document Management System)
6. Release to General Ledger (accounting software Finacc)
7. Start authorisation follow matrix (aligned with corp governance), electronische flow (1-->3)
8. 2/week automated payment authorised invoices
07 09 2011 AP Tech Summit 2012

8. 4. The “Solution” we chose
The processes
Automated
Start Workflow PO Correct Accept good
Purchase Order Yes Correct PO? Yes No Yes matching with
authorisation authoriser? services
invoice
Comment/suggest No No
No
new authoriser
Back to requestor
Manual matching
PO
Receipt &
OCR (Optical Is invoice Is there a
scanning of Validation invoice Match with
Character header Yes Purchase Yes Yes
invoices (per header information PO?
Recognition) correct? Order?
opco)
No No No
Manual adjust Contact purchase/
Return supplier
supplier
Workflow
Start workflow Payment of all
procedure check Entry analytical Automated if
Invoice authorized
data for General information match PO
authorisation invoices
Ledger
Manual if no
match PO
07 09 2011 AP Tech Summit 2012

9. 4. The “Solution” we chose : Arco PO-module
• Flexible procurement system in Arco
• Allows rapid and simple digital PO initiation / approval and acceptation
goods/services
• In case of full matching : no further approval of the invoice needed
• Provision at end of the month becomes easy
07 09 2011 AP Tech Summit 2012

10. 4. The “Solution” we chose: Arco Invoice Management
• Cockpit gives clear overview of work-in-progress
• Interactive messages from ERP for booking
• Roles in accounting : see work per company, manage new suppliers, …
• SSC can do own functional administration without IT
07 09 2011 AP Tech Summit 2012

11. 4. The “Solution” we chose: Arco Invoice Management
• After OCR invoices can be completed
• Approver can be automaticly suggested based on company, supplier, etc
• Booking information can be suggested
• Chart of authority easy to configure: roles - matrix
07 09 2011 AP Tech Summit 2012

12. 4. The “Solution” we chose: Arco Invoice Management
• Flexible approval methods (roles – matrix)
• User specific actions can be configured
• Block reasons / link credit note to invoice / …
• Email notification users: new work and overdue
• Complete audit trail
07 09 2011 AP Tech Summit 2012

13. 5. How far did we get ?
The “Results”
- Less capacity : - 25 % FTE accounts payable operational cost 12 €/doc
- Less provisions : - 30 %
- Less errors at input (OCR 90 %), more consistency
- Less traffic, waiting
- Electronic authorisation (at any time, no office hours)
- Hardly loss of documents
- Electronic archiving (at any time, no office hours)
- Increased masterdata quality
07 09 2011 AP Tech Summit 2012

14. 6. Critical Success Factors
1. Clear understanding / view “to be” process :
- enabling us to define a clear scope, proper project management (Prince2)
structure with defined roles and responsibilities
2. Buy-in off all stakeholders
- set up of meetings with MT of each individual customer (sister opco)
indicating the disavantages of “as is” situation (cost to serve argument)
vs “to be” situation
- extensive testing period with customers to familiarize with application/process
3. Technical specs (ARCO, OCR)
- choice of a trusted partner (proven trackrecord), max nr connectors, …
4. Communication
- pro-active communication of status project to customers
- introduction movies / mails
07 09 2011 AP Tech Summit 2012

15. 7. What’s next
Implementation of expense account module, based upon same logic as PO
module, scheduled for mid 2012
Employee fills in expense account template
(new web based ARCO module)
Module contains logic controls
(amount totals, corporate rules,…)
Module suggests general ledger account,
cost centre, …)
Once filled in and approved by system -->
DMS workflow for authorisation
Once authorised --> general ledger
registration & payment
07 09 2011 AP Tech Summit 2012

16. 8. Q & A
07 09 2011 AP Tech Summit 2012