in Accounts Payable Karl Andersson, Founder Phone: 508-480-8990 Fax: - PowerPoint PPT Presentation

Cash Maximization in Accounts Payable Karl Andersson, Founder Phone: 508-480-8990 Fax: 781-634-0500 www.technology-insight.com

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Agenda The next 45 minutes: a) About Technology Insight b) 5 Ways to Maximize Cash c) Question & Answer

About Technology Insight Technology Insight Corporation (TIC) provides Accounts Payable , Internal Audit and Purchasing with robust, detailed P-to-P data analysis tools that enable them to perform comprehensive operational analysis and duplicate payment identification through to recovery. Enabling change for the greatest impact to the bottom line and operational efficiencies.

5 Ways to Maximize Cash 1) Get Control of Payment Terms 2) Identify & Prevent Duplicate Payments 3) Actively Manage Your Vendor Master File 4) Leverage Your P-card 5) Manage PO Use

Payment Terms QUESTION 1 What are your company’s standard payment terms? QUESTION 2 How many different payment terms does your company support?

The DataShark A/P Solution Actual vs standard payment terms • Number of payment terms being used • Spend associated to each term Effect of overrides/incorrect terms on cash • Payment term is overridden at invoice entry • Incorrect terms on the PO Missed early discount opportunities • 2%/10

Payment Term Flow Purchasing Remit Vendor Master Vendor Master File File Terms Differ Net 30 Net 30 Net 45 Open PO’s Terms Differ Terms Differ Purchase Invoice Order Net 30 Net 30 Terms Differ

Duplicate Payments Exponential impact to bottom line • $100,000 @ 2.5%PM = $4,000,000 sale • $100,000 @ 5% PM = $2,000,000 sale ERP System Controls • Strict matching criteria • Misses data entry errors, incorrect vendor assignment, duplicate vendors, and more Profit Recovery firm • Reactive – Unnecessary cash out the door – Will the supplier still be in business? • Costly contingency fees

DataShark Architecture PeopleSoft Oracle Legacy JD Edwards SAP Lawson Any System P-Card T&E Technology Insight DataShark ERP Independent Database DataShark A/P - For A/P & Internal Audit - Over 200 operational reports & metrics - Updated daily, weekly, monthly, quarterly or annual

The DataShark A/P Solution Prevent • Minimizes impact on cash • Removes risk of ‘uncollectible’ Maximize recoveries • Companies cannot afford to leave cash uncollected • Over 300 algorithms analyzing data to line item • Includes invoice-to-pcard or invoice-to-T&E Minimize resource needs • 75% reduction in resource vs audit software • Over 50% true duplicate payment hit rate

Analysis Results Technology Insight DataShark A/P (unlimited ) Profit recovery & Audit software (8-15 algorithms) ERP controls Pcard / T&E duplicate payment

Vendor Master File Heart of all system controls • Duplicate payments • Payment terms • Fraud

The DataShark A/P Solution Clean-up • Inactivate Active but Unused vendors • Inactivate Active but Aged vendors (e.g. 24 months) • Inactivate Duplicate Vendor Master Files (VMF) Manage • Monitor addition of duplicate vendors • Monitor changes to the VMF

Procurement Card Naturally extends payment terms • E.g. 30 days turns to 45 days Automated more efficient • Requires less resource • Reduce or repurpose staff Increase savings through incentives • Get % back from the card provider Consider increasing p-card spend limits

The DataShark A/P Solution Target low dollar, high volume manual invoice vendors • Based on your pcard limit Monitor vendors for both pcard and invoice activity Monitor pcard-to-invoice duplicate payments Monitor MCC activity for non-standard use Aggregate pcard and invoice spend for comprehensive spend analysis • Ensure supplier is properly reimbursing incentives • Stronger negotiating position

Purchase Order Use Manage cash more effectively Greater control on spend Adherence to PO Process • PO’s for purchases $x and above Consistent business processes with vendors

The DataShark A/P Solution Target non-adherence to business process • All spend over X dollars without a PO Monitor PO use by vendor • Total actual spend compared to PO spend PO terms not in keeping with Vendor Master

Contact Us Karl Andersson CEO and Founder direct: 508.281.4697 mobile: 617.233.3525 email: kandersson@technology-insight.com www.technology-insight.com