Monday Dec 19, 2011

ESCO Automates Accounts Payable with Oracle WebCenter & ImageSource

See how ESCO automates accounts payable in this video and case study by our partners ImageSource. This post is a follow-up to our week of accounts payable postings last week and our webinar Optimize Accounts Payable Through Automated Invoice Processing.This post is guest blog from Debbie Horton of ImageSource.

ESCO is a leading independent, global developer and manufacturer of highly engineered wear and replacement products used in resource mining, infrastructure, power generation, aerospace and industrial applications that are essential to the productivity of its customers' machines. ESCO has optimized their Accounts Payable department and automated much of the invoice processing tasks they need to perform on a daily basis by using Oracle WebCenter. Leveraging WebCenter's invoice processing solution, ESCO was able to increase the number of invoices they process annually, while reducing resources to do so, adding to the overall ROI they are benefiting from by using Oracle WebCenter. A majority of ESCO's invoices now go through their AP process with no manual intervention. Oracle WebCenter extracts the necessary information from their invoices and automates the data entry into their Oracle E-Business Suite Financial application.

ESCO Corporation Augments ERP Platform wth Oracle ECM 11g for Seamless Automation from ImageSource on Vimeo.

Implemented by ImageSource, a certified WebCenter partner, ESCO has benefited from ImageSource's extensive experience in implementing imaging solutions with WebCenter. Watch the video testimonial about their success with WebCenter implemented by ImageSource. You can read more about ESCO in this case study. To learn more about automating the accounts payable process with Oracle WebCenter, view the on-demand webcast Optimize Accounts Payable Through Automated Invoice Processing.

Tuesday Dec 13, 2011

Texas Industries, Inc (TXI), Oracle WebCenter, and AP Automation with Keste

Today we have a guest blog post from Vince Casarez, Sr Vice President of Technology at our partner Keste. This blog post profiles Texas Industries, a company that is using Oracle WebCenter to automate accounts payable processing. If you want to learn more about this process, make sure to register for our webcast taking place this Thursday, December 15th.

Here's a topic that you likely don't think much about but has a very large impact and application within any medium to large size customer. It's around taking accounts payable invoices, pulling them into a managed infrastructure, and reducing the need to manage all kinds of forms and paper documents.

Sexy? Not really. Big business benefit for a reasonable investment? Absolutely.

At Keste, we worked with Texas Industries, Inc during this year to provide a solution in just this space.

Borrowing from TXI's site, they are a leading supplier of cement, aggregate and consumer product building materials. All types of construction - residential, commercial and public works - use these materials. They have 4 Cement plants in TX &CA, 18 Aggregate plants, and over 70 Concrete plants to meet their increasing demand from customers. TXI is the largest, low-cost producer of cement in Texas. When the economy recovers, TXI will enhance its market position when it completes its expansion project to more than double the existing production capacity at our Central Texas cement plant. They have similar expansion plans for their CA plants as well. So needless to say, they aren't the exact profile that you might expect a high tech AP automation process to have a lot of value but they absolutely are a key target area for these types of solutions.

Reducing operating cost is one of the main reasons to initiate this project because if look at the Elements of a Typical AP cost from the chart below, you can see that the labor cost is by far the largest cost in the invoice processing cycle.


So in order to reduce the cost of labor, it requires an understanding of the elements that contribute to the total cost. For TXI, the main cost areas were manual data entry, approval routing and manual approvals. The best way to eliminate this manual process is through automation.

Invoices were mailed to virtually all plant/office locations. Each location has resource(s) dedicated to handling AP invoices and TXI had over 50 people involved in the process. At each plant location from opening the mail, to identifying the approval hierarchy, through routing the invoice for approval, took nearly 30 days. Some of the plants are located very close to each other and have shared management resources, but these were still very laborious and very expensive processes.

So the overall goals were simple: 1. Minimize manual data entry 2. Eliminate manual paper handling processes 3. Reduce employee resources involved in AP invoice processing

Our specific target was to get all invoices into the AP system in less than 5 days (compared to ranging from 1 day to 2 weeks or longer). This would enable three changes to the business: 1. Allow for additional earned discounts 2. We can identify liabilities much faster 3. We could better assess the daily cash needs

Now lets talk about how TXI's new invoice process works. The diagram below also illustrates this. Invoices are no longer processed at the field office/plant locations, they are all sent to central processing center. This immediately reduces the need for an AP Processor in each field office. For TXI, the AP processor total headcount was reduced by a total of 47 people. These 47 people were then able to spend more time helping the field offices serve customers or retrained in other parts of the business.

WebCenter Capture, which starts the process by scanning documents such as invoices and receipts, and then capturing important data from them for indexing before committing them to WebCenter Imaging.

There is 1 person that is performing invoice scanning through the use of Oracle WebCenter Forms Recognition. This allows us to achieve over 75% of scanned invoices to be entered into the system without any exceptions. This means that the 3 other AP processors handle the exceptions. Their job focus shifts from data entry to data review, editing, & workflow monitoring. A much more efficient use of their time and much more valuable to the overall business.

In addition, Oracle WebCenter Imaging was used for coding and handling the different validation errors in combination with Oracle eBusiness Suite as the AP system source of record.

WebCenter Content is the storage and content lifecycle management system for all financial documents. It ensures that no more costly shipping, handling and retention of paper is required, as documents such as invoices can be imaged at the front end of the process, and then effectively managed throughout the various stages of business operations until they need to be archived for safekeeping and data offload. Secondly, it allows for imaged invoices to be attached to workflows, and be retrieved through E-Business Suite interfaces for processing, such as the Payables UI. So, this implementation cut down on processing times by ensuring that AP Processors never have to leave their environment to accomplish tasks like key from image or P.O. matching.

Leveraging the power of Oracle BPEL Process Manager workflow engine included with the Oracle Business Process Management Suite, TXI implemented advance exception handling capabilities for routing and delegation to handle tasks. The Business Activity Monitoring component provides a customizable dashboard view of key metrics, enabling the A/P Manager to gain the insight into any process bottlenecks before they become an issue.

And the actual goals have been reached and exceeded to the extent that invoices without any exceptions are in the system on the same day. At worst case for the exceptions, invoices are in the system in less than 5 days, always!

For the future, TXI plans to leverage this solution as a foundation for automating other operations such as expense management, contracts or receivables, and various HR processes.

All of this was kicked off by a discovery workshop run by Keste to nail down the specific business requirements and put a phased delivery plan in place. Anyone at Keste can provide you more specifics!

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Oracle WebCenter is the center of engagement for business—powering exceptional experiences for customers, partners, and employees. It connects people, process, and information with the most complete portfolio of portal, Web experience management, content, imaging and collaboration technologies.

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