Presentatie van Bram Kuijper (Basware): 'The Cost of Control, de missing link tussen inkoop en finance', Seminar E-procurement & E-invoicing - 1 juli 2010 #sepei

1. The Cost Of Control“De Missing Link tussenFinance en Procurement” Delft, 1 juli 2010 Bram Kuijper, Basware

2. 2 studies Cost of Control 2009 & 2010 IESE , Loudhouse Finance & Procurementtowards AP Invoice Processing Excellence Forrester Research

4. Relationship between procurement and finance

5. Attitudes and awareness of risk in the supply chain

6. Levels of automation of purchase to pay processes“The missing link”

7. Sample breakdown Scandinavia 100 interviews UK 100 interviews Germany 50 (100) interviews USA 100 interviews Benelux 50 interviews France 50 interviews Spain 50 interviews Job role Average company size: 9,600 employees

9. B Costcutting

12. B Supplier Risk

18. Capture, Automation & Integration Integrated core of accuracy, automation and spend capture Majority of processes operate outside the ‘core’ 43% of indirect spending captured 50% of processes supporting purchasing are automated Capture Automation Integration 46% of FDs consider that purchasing and finance functions are integrated effectively

19. Impact on Finance Automation Automation of finance department leads to wins in areas of efficiency and collaboration with procurement +8 +7 +4 +4 +3 +1 0 % scoring 6-7 (Good, Very Good or Excellent)

20. 2010 Survey Cost of Control 2010 is based on 550 telephone interviews undertaken with CFOs / Finance Directors in companies with 1000+ employees. The study was conducted by Loudhouse Research and follows on from a previous study in 2009. By company size

21. 2010 survey -> Priorities over the next 12 months Although cost reduction remains a key priority, there is a healthy focus on margins and profits in 2010 2009 64% 39% 37% 45% 55% 43% 39% 27% 24% * Arrows reference movement of +/- 5%

22. 2010 survey -> More significant challenges than 12 months ago FDs are facing more challenges now than 12 months ago - particularly in identifying and realising further cost savings and issues relating to systems integration / technology. In 2009, the top two challenges were spend visibility and increased supplier risk – both of which have diminished in relative importance this year 2009 34% 31% 25% 37% 29% 22% 31% 18% 35% 24% 22% 6%

23. % of indirect spend captured in PO systems In 2010, on average 46% of indirect spend is captured by PO systems, a marginal increase since 2009 when the average was 43% 46%average

24. % of spending processes currently automated In 2010, on average 56% of processes behind spending are automated, a marginal increase since 2009 when the average was 50% 56%average

25. Enterprise Benelux A typical enterprise in the Cost of Control 2010 study ...... Has 71 days sales outstanding (DSO) Generates 60,654 invoices per year Currently manages 1,924 supplier relationships Employs 19 full time procurement staff Employs 26 full time accounts payable staff Had stable revenue (0%) during 2009 Experienced profit margin decline (-2.5%) during 2009 47% of overall company spend is managed by the procurement department

26. What about the facts on capture, integration & automation?? What’s the secret to success?? What is the best mix??

28. B AP Management

30. High vs low performing AP departments

31. Forrester’s grading in performance

32. What is the respondent’s general opinion on:

33. What about procurement & finance collaboration:

34. What is the average automation level:

35. What is the way to handle approvals/exceptions:

36. What is the relationship between AP practice & performance:

37. Centralize AP responsibility Persuadesuppliers to sendinvoiceselectronically Implemente-procurement Achieve high PO coverage, butnot 100% Implementinvoice (exceptionhandling) approval software Good relations withprocurement, system wise What is the best mix to reach the top quadrant:

38. Basware offeringe-procurement & e-invoicing Suppliers Legacy Systems e.g. Order Management, Billing Basware Connectivity CatalogExchange Purchase MessageExchange Scan andCapture E-invoicing SupplierActivation Procurement Invoice Automation Customer Legacy Systems e.g. Financial Systems, ERP

39. Basware Open Network for e-invoices Buyers Supplier Portal Invoices < 10 Email sending Invoices 10-100 Basware Business Transactions “Virtual Printer” Invoices 100-500 Supplier Buyer Invoices > 500 Integrated connection Supplier Scan and Capture Printing services

40. e-mail: bram.kuijper@basware.com Web: http://www.basware.com Thankyouforyourattention!!!