Steven Breaden, Senior Manager, Expenditure - Technical Strategy, will share exactly how he implemented new technologies, what key obstacles Shell had to overcome and how exactly AP staff are ramping up efficiency now there are far fewer exceptions to handle.

1. How to Enable Straight Through
Touchless Processing of 500,000
Invoices
Toning Up PtP to Attain
Touchless Procesing, 9th June
2010
Steven Breaden
Senior Manager, Expenditure – Technical Strategy
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2. Introduction.....
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3. About Shell
We are active in more than 90 countries
Worldwide, we have 101,000 full-time employees
We produce around 3.1 million barrels of oil equivalent per day
Our fuel retail network has around 44,000 service stations
We sell transport fuel to some 10 million customers a day
In 2009…
We generated an income of $12.7 billion;
Invested $31.7 billion in capital; and
Spent over $1.1 billion on R&D
We are listed on the stock exchanges of Amsterdam, London and New
York
Source: 2009 Annual Report
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4. BUSINESS OVERVIEW
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5. SHELL STAFF BY SEGMENT
AVERAGE NUMBERS 2009
Rounded to the nearest thousand
Upstream 23,000
Downstream 62,000
Corporate 16,000
Total 101,000
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6. The SBSC Finance Community
650
750
Glasgow (1998)
FTE
FTE
Krakow (2006)
Athens (2006)
1500 1500 FTE
40 FTE Chennai FTE
(2007) Manila (2004)
Kuala Lumpur (2000)
750
Cape Town (2007)
FTE
40 FTE
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7. Introduction
In order to automate the AP process, there are four key areas we have
had to consider in our journey from <10% Straight Through Put (STP)
towards our aspirational target of 50% of documents going through
Brainware reaching a Post / Park State within the ERP automatically.
Our 4 Key enablers to automation are:
Strategy
People
Technology
Data
Automation is not solely an IT project!
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8. Introduction (continued)
Straight Through Processing (STP):
Processing a document to Park / Post state within ERP without manual
intervention
2009 - Prior to Brainware V4.1 implementation, STP <10%
20 Invoice per FTE per day processing efficiency target
2010 – 3 Months after Brainware V4.1 implementation, STP 20%
35 Invoice per FTE per day processing efficiency target
2010 – End of year STP target of 50%
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9. Strategy
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10. Strategy
Strategy touches on all elements of automation. It will almost certainly have an impact on
people
in your organisation, and the types of automation technology you adopt. It provides a
roadmap
from where your organisation is in it’s Automation Journey, to where you need to get to.
It’s important to have a clearly defined strategy at the outset of an automation project, and
to
adapt your strategy through out your journey. Some key things to consider :
Business Rules – No one knows your business like you do
Defining Business Rules for automation need to be the first point on your project plan.
There is no “One Size Fits All” technology for AP. Many organisations have a
combination of two or three solutions in place to achieve automation targets.
In shell we have implemented Brainware, SAP Workflow, E-Invoicing and ERS to drive
up automation NAME HERE
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11. Strategy
It is important to clearly match technical solutions to vendors.
Legal Fiscal Requirements – They are either an enabler or blocker to automation,
and need to be identified up front.
Internal organisation – Role mapping / team structure are enablers in successful
automation
Benchmarking and Networking – It’s important to find out what everyone else is
doing.
Structure is required in delivering strategic projects. Within Shell we have adopted
the “Lean Sigma” methodology to support strategy
In today’s office, there needs to be a robust strategy for eliminating paper based
invoicing.
It’s a simple formula - Paper = People!
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12. People
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13. People
During any automation project there are a number of people and relationships
that need to be considered and developed to ensure success.
Key customers and stakeholders to consider include:
CP & Finance
Senior Management
Project and Technical Staff
Accounts Payable
External Customers / Vendors
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14. People
CP / Finance
It is almost impossible to drive implementation of automated solutions without
end to end buy in.
Within Shell CP, own the relationship with the Vendor, as such CP buy in is
essential to the success of any of our automation projects
Organisationally, it is important to ensure CP / Finance goals are aligned to those
of the AP organisation – automation projects need to be worked in partnership
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15. People
Senior Management
Key enabler in an automation project, buy in needs to be secured as early in the
project as possible
Visible support of initiatives is essential in ensuring organisational buy in, focus
and support of your project
Manage expectations – goals, objectives and deliverables of the project need to
be identified and agreed early in the project
AP Automation is a journey – Senior Managers need to be committed to all
aspects of the project – timelines, automation targets, resourcing requirements of
the project - in order to deliver long term success.
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16. People
Project and Technical Teams
An initial project team is required to deliver the project - it is essential that this
has end to end process representation
A Technical team will be required to support post roll out.
Members of this team need to have a knowledge of the deployed
technology, coupled with high level knowledge of the E2E process
Within Shell we have also established a Technical Strategic Team to focus on
driving up efficiency within our process and to bridge the gap between CP,
Finance and AP.
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17. People
Accounts Payable
In order to roll out any new project you will need the support of AP
This can be a difficult relationship to manage, the ultimate aim of automation is to
increase efficiency and typically reduce headcount / FTE within your process.
AP are required to test and validate automated solutions, and also operate the
system post implementation
Automation projects can be an opportunity for AP staff to develop project experience
Experience gained through the process can lead to other opportunities within the
organisation
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18. People
External Customers / Vendors
Solutions need to be workable for your Vendors
Automation should simplify Vendor payment
It is essential to consider current ways of working with Vendors when rolling out
an automation project.
It is also critical to develop the relationship with 3rd party automated solution
providers. They need to understand your business and goals – you need to
understand what they can deliver.
Open and honest communication is a must!
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19. Technology
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20. Technology
Currently within Shell we utilise the following technologies :
ERS
Brainware (OCR) Technology
PDF Functionality
SAP Workflow
E-Invoicing
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21. Technology
ERS
Shell currently have vendors on boarded on ERS
Benchmarking statistics show that even with Top Quartile and World Class
Organisations, only around 27% of transactions are handled via ERS
Currently Shell transacts in the region of 500,000 transactions via ERS
ERS is a key part of Shell’s automation strategy, however it is clear that other
technologies in this space are required to drive us to top quartile AP
performance.
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22. Process Flow – Brainware
Automated
Semi Automated Flow
Flow
Receive Invoice
Mail sort / Scan
(PDF) PDF
Paper Invoice
“Scan” Invoice
Upload Document to
(Physically /
Image Repository
Electronically) “SCAN”
OCR / Verify Process in Verifier &
Document BRAINWARE ERP Exceptions
V4.1 Verifier SAP WF Exception
s
SAP Workflow / Process ERP
Exceptions Exception Item
SAP WF Exception
s
Pay Vendor Pay Vendor
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23. Technology
Brainware (OCR) Technology
We have recently upgraded to V4.1 of Brainware – Global Retrofit took place Feb 23rd 2010.
Aspirational targets for yr end 2010 of
90% Extraction
50% STP to Park / Post in ERP
Currently achieving
80 % Extraction
20 % STP to Park / Post in ERP
At present, approximately 1,000,000 invoices are routed though Brainware per year, as such
Brainware plays a key part in our automation and efficiency targets
The technology allows us to simplify exception handling in the ERP
Reduced language requirements – key to Shell as given global nature of our business
Apart from FTE efficiency, we also use Brainware to drive compliance, and to add control
within the AP process
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24. Technology
PDF Functionality
Almost 100% of invoices processed via Brainware at present are submitted as
paper documents to one of our scanning hubs
With Brainware V4.1 we have implemented the Exchange Connector Technology
to automate PDF upload to Brainware
We are currently rolling out PDF functionality to vendors
PDF invoicing is a key enabler in driving up efficiency in the organisation
In today’s economic climate, it is also an attractive option to suppliers, reducing
invoicing and administration cost and speeding up vendor payment.
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25. Technology
SAP Workflow
We use a SAP Workflow solution
This has been customised to maximise automation in the process
Our SAP WF Solution supports and is supported by our Brainware
implementation
As part of the V4.1 Brainware roll out, we have revised our ERP / WF business
rules and matching logic
This allows checks such as Vendor Derivation and PO Line Matching to
take place before a document is created within SAP
Automatic posting of invoices with 3 Way Match Logic implemented
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26. Technology
E-Invoicing
Shell is currently reviewing it’s e-invoicing strategy
The expectation is that a robust E-Invoicing Strategy could supplement current
solutions and drive efficiency to 80+ Invoices Per FTE per day
There are approximately 400 E-Invoicing providers in the market offering varying
degrees of automation from PDF invoicing through to fully integrated solutions
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27. Data
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28. Data
Data is another key component of any automation project.
Before any automation project, data is required to help formulate strategy – and
validate results. Some data to consider include:
High Volume Vendor reports
Spend analysis
PO vs Non Po transactions
FTE efficiency
Compliance within the business
Benchmarking Data
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29. Data
In order to gauge where you are on the automation journey and to identify
areas for improvement it is important to have data and a suite of reports
covering a number of metrics at the following levels:
• Operational
• Managerial
• Strategic
Within Shell, we have developed various reports to analyse and drive
Automation particularly around our recent Brainware implementation.
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30. Data
Operational Metrics:
Extraction Report
SAP Error Message Report
Processing Stats
Line Item Extraction
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31. Data
Extraction Reporting
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32. Data
Managerial Metrics:
Straight Through Put Report
FTE Processing Efficiency
Cycle Time Report
Universal Work List / Escalation Report
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33. Data
STP Report
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34. Data
Strategic Data:
PDF Volumes
Extraction Report
SAP Error Message Report
FTE Efficiency Metrics
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35. Summary
Currently achieving 20% STP to Park or Post via Brainware against a
50% target just 3 months after go live on V4.1
Brainware extraction is currently at 80% against a year end target of 90%
Lessons Learned:
Remove Paper!
Business Rules are key to success
Straight Through Put – One phrase, many definitions!
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36. After!
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37. Q&A