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Tech Mahindra – BPaaS – Invoice Management Solutions

Tech Mahindra – BPaaS – Invoice Management Solutions. Tech Mahindra’s AP BPO Value Proposition. ‘ TechM ’- A trusted partner with proven execution. Value Proposition. Tech Mahindra BPaaS Platform powered by ARIBA provides the highest level of efficiencies

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Tech Mahindra – BPaaS – Invoice Management Solutions

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  1. Tech Mahindra – BPaaS – Invoice Management Solutions

  2. Tech Mahindra’s AP BPO Value Proposition ‘TechM’- A trusted partner with proven execution Value Proposition • Tech Mahindra BPaaS Platform powered by ARIBA provides the highest level of efficiencies • Right most Shift Strategy to migrate Paper, EDI invoices, Upload, XML etc to ‘Self billing’ : 45% to 80% over time • Process Transparency & improved compliance at each step in AP cycle • Guaranteed Productivity enhancement and Automation translated into financial gains Efficiency Highest level of efficiency through Transformation led approach 1 • Active role in Change management from Demand creation perspective and driving adoption of solution at Client’s end • Lead role in Supplier enablement; facilitated by client • Assistance in driving Change management around adoption of AP Global Processes and best of breed solution Responsibility Assistance and investments in Change Management 2 • Adjustments to Scope, Sequencing and ramp up profile based on execution realities • Highest level of executive attention to the program • Solution flexibility to cater to Paper, EDI and ‘Self Billing’ invoices • Complete transparency on financial / business impact Freedom Flexibility in Program execution 3

  3. Tech Mahindra’s AP BPO Value Proposition ‘TechM’- A trusted partner with proven execution Value Proposition • Zero upfront implementation fee and transition fee to enable fastest pay back period and Year 1 benefits • Committed Supplier enablement ratios in the financial model • Implementation approach will maximize benefit by moving largest suppliers at the front end • Investments in integration of ERP with TechMBPaaS solution Commercial Value Proposition to deliver first quadrant cost per invoice 4 • Scalable construct to include currently “out of scope” countries to the Global AP Shared Services • TechMBPaaS platform can potentially extend upstream/ downstream processes Quality Scalable Program construct 5 • Tech Mahindra has deep set relationships with its clients at all levels and understands the unique culture, values and imperatives of each client • We understand the IT – BPO integrated environment and would be able to partner with clients to ensure success • Strong Risk management framework Mutuality De-risked Program execution 6

  4. Alignment with CFO’s Objectives & Business Context

  5. Alignment with CFO’s Objectives & Business Context

  6. Benefits Realized • Transformation of Accounts Payable at USD 15.4 Billion Mahindra Group Parameter Before After • SAP Harmonization of all plants on SAP 6.0 version • Automated Invoice Processing Program development • Consolidation of all Accounts Payable activities • Standardization of Processes across plant locations 13 # of Locations where SAP was Implemented 9 # of Plants where SAP was Implemented 51 12 # of business scenarios 40 20 # of Material SKU’s 25,000 7,000 Pricing changes for multiple parts Per Year 240,000 2,000 Automated invoice processing % 90% 0% # of people 50 50 # of transactions Per Year/ Value 12,400,000/USD 5 Billion 700,000/USD 0.5 Billion Manual: 10 days, Automated: 1 day Average TAT Manual: 3-4 Weeks Transactions per processor/Year 248,000 14,000 What was done • Vendor Engagement Programs • Supplier Relationship Module platform • Enabling Vendor Financing Schemes

  7. Our Solution Approach • We will enable these through our Tech Mahindra Business as a Service (BPaaS) solution stack Operating model and pricing Change management and governance Risk Management BCP/DR Transition TechM managed PMO TechM managed Steady State TechM managed Price: Per Invoice Process Transition mASTERTM Framework Supplier Enablement PO-Invoice Automation Standardized Process Golden Process Right Shift from 73% Manual to 20% manual in 5 years Journey from 2% to 80% Self Billing adoption Continuous Improvement QMS iStrive – Continuous improvement framework People Language, Location Hiring & On-boarding Training across employee lifecycle Organizational Capability Development Performance management and Incentivization Employee retention Tools Adaptors Invoice Conversion (ICR/OCR) Supplier Network PO-Invoice Automation Invoice Professional Delivery Fargo/Belfast – Near shore Hyderabad/Chandigarh – Offshore Center Regional Mail Rooms

  8. Global AP Process Adoption Client’s preferred Approach Right Shift Approach Paper format PDF File Format Upload Vendor Portal EDI Self Billing Year 1 Year 2 Year 3 Year 4 Year 5 Tech Mahindra Approach 55% 65% 75% 80% Adoption Rate 45% Adoption Paper Adoption Manual 80% Manual PDF File 20% Self Billing Upload 15% 3% EDI Electronic 80% 2% Self Billing PO-Invoice Automation Key Drivers Supplier Network

  9. Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Our Vision of ‘To-Be’ state Tech Mahindra’s BPaaS platform (powered by Ariba) Procurement Pro Payment Professional Discount Professional Enterprise Sourcing Spend Analytics Contract Management Supplier Perf. Mngt Invoice Professional Procurement Content PO & Invoice Automation Client’s Intranet AS2 cXML EDI Adapter SupplierNetwork Email CSV Paper HTML Payment - Status Invoices - Status PO Conf & ASNs Vendor Management Purchase Orders Upstream & Downstream Capability

  10. Supplier Supplier Supplier Supplier Supplier 98%+ Auto Post Smart Invoicing • The Greatest Value is in TOUCHLESS processing! • SMART Invoice Validation drives auto post rates of 98%+ PO & Invoice Automation PO-Invoice Automation Rejects exceptions back to suppliers in real time Client’s ERP Invoice Automation Exception Exception 70+ MATCHING VALIDATIONS Invoice • Less than 2% Exceptions • Massive decrease in AP Effort • Procurement Time Savings • Instant Visibility to Errors • Rapid Resolution & Re-Submission • Forecast-able Cash Receipts

  11. Global Team Devoted to Your Success Supplier Enablement framework Services and Support Resources Largest team of experienced supplier enablement program managers that onboard track and educate suppliers Dedicated team of account, product and service managers focused exclusively on supplier satisfaction Supplier Solutions Team Experienced operational team focused on adhering toa global SLA of 99.999% uptime Operations Personnel Engineering Team Developers and quality analysts deliver newcapabilities with valued input from supplier council 24x7 Global Support Experienced support team with ability to support suppliers in local language

  12. Working Capital Tension Situation and Objectives of Buyers and Suppliers Buyers Suppliers • Working Capital Tension Historic Cash Reserves: $1.9T+* Payment Terms Stretched Low Interest Rates: 0% - 0.3% Limited bank credit Investor pressures for greater returns Low visibility into cash flows Supply Chain Risk Cash flow is critical

  13. Integration to ERP • Master Data Synchronization • Master data (users, supplier, g/l codes, chart of accounts, etc.) is imported from the Customer’s ERP system. Data validation and testing are recommended by the Customer prior to the upload - following the initial import, Customer driven validation criteria are used to govern periodic synchronization of master data from ERP to the application. • Transactional data integration • Purchase orders and shipping receipts are imported to the Ariba System for reconciliation purposes in a real time basis via the Ariba ERP specific adaptor. Upon reconciliation, partially and fully reconciled invoices are exported from the Ariba Invoice Pro application in a real time basis to the ERP for further invoice and or payment approval workflow.

  14. Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Master Data Synchronization Vendor Master UOM Chart of Account Users G/L Codes Currencies Invoice Pro OR Network Adaptor ERPs Importing Master files may be facilitated either through CSV files or systematic Integration (File channel or EAI).

  15. Vendor Vendor Vendor Vendor Vendor Vendor Vendor Vendor Vendor EIPP Integration Options ePayment Discounts Workflow AS2 cXML PO/Change/Cancel PO OC, ASN CO Invoice Inv Status Discounts Pay/Remit cXML IDoc/RFC EDI OC & ASN Email Receipts CSV Invoices & Credits Any Invoice & Pay Status HTML Discounts & Pay Paper Network Adaptor Network Adaptor Network Adaptor Network Adaptor Network Adaptor Network Adaptor Ariba Open Adapter– leverages Customer infrastructure, Certified by Ariba Customer Adapter– implemented by Customer, Certified by Ariba Ariba/Netweaver or FusionAdapter– implemented / Certified by Ariba

  16. Quality Management Framework Our 3600 feedback constitutes an integral part of continuous improvement to identify, recommend, deploy SL strategies • Prioritized Recommendations • Governance cadence • Periodic Discussions 3600 Feedback • Tracker • Co-developed Value Register QMS

  17. mASTER Transition Methodology Analysis Execution Transition Relationship Solution Process Understanding Steady State / Continuous Improvement Opportunity Identification Transition Setup & Knowledge Transfer Solution Design Pilot • Monitor performance and track issues . • Conduct QBR. • Plan Program Improvement. • Execute Improvement Projects. • Set Process Improvement targets for year. • Identify new opportunities. • Benchmark Process. • Evaluate & deploy new Technologies and tools. • BCP Audit (every 4 months). • Project Team mobilization • Implement Hiring plan • Implement technology plan • Conduct Tech and Infrastructure readiness check • Apply for EINs and system ids • Establish BCM guidelines Knowledge Transfer • Conduct KT induction Training. • Validate adapted processes • Create SOPs and Training Manuals Implement Training plan • Implement Pre & Process Training • Monitor Training Progress • Agent certification • Training System readiness check • SOW finalized • Acceptance criteria and toll gates met. • Establish governance structure, escalation mechanism and PMO • Project Communication Plan • Create “To-Be” Process Deployment Maps • Transition kick off meeting • Detailed Transition Plan (MPP) • Recruitment Plan • Knowledge transfer plan • Training Plan • Parallel Run Plan • Transition toll gates • Go-live Acceptance criteria • Establish quality management process • Identify Risk & Mitigation strategies • Facility and Technology Deployment Plan • Business Continuity Plan • Go Live implementation. • Finalize service quality plan • Establish production SLA • Establish escalation process management • Gauge training effectiveness and plan Training interventions • Create and circulate the Transition Handover Document. • Conduct business reviews • Update delivery and other enabling documents • Conduct compliance audits and close gaps • Customer Requirement • Pre Solution Questionnaire • Investigate Business ‘Y’ • Identify and Set Expectations on Project Deliverables • Projected Scope • Discovery Process (if applicable) • Understand e2e process and Identify off shoring candidates • Finalized Project Scope • Understand process measures and KPIs • Understand IT Design • Understand hiring requirements and FTEs skill set • Understand training requirements • Risk & Mitigation plan • Purchase Order/LOI • Validate /Create “As-Is” Process Maps • Create Process SIPOC • Collect and Measure Process Baseline data • Establish Process metrics • Analyze Volume Data: Max, Min, Seasonality • Validate FTE skill set and requirements • Validate training requirements • Identify Variation Sources • Conduct Cause and Effect Analysis • Pareto Analysis • Verify system access requirements • Conduct Volume to FTE analysis Toll Gates TG2 TG3 TG4 TG1 • Output • Process Flowcharts • Process Metrics & Baseline data • FTE Sizing & Volume analysis • Technical Req Report • Output • Governance plan & PMO • Roles and responsibility matrix • “To Be” process maps • Detailed Transition Plan • Risk & Mitigation Plan • Output • BCM guidelines. • Training Guide/SOP’s. • Agents certified. • Output • Project Scope • Proposal • Purchase Order • Discovery report • Output • SLA’s & KPI’s • Escalation Management matrix. • Transition Handover Document.

  18. Risk Mitigation Strategy Risk Identification • Define Scope of Risk • Risk Management Plan • Previous Experience • TechM Organizational DB • Project Specification Risk Analysis and Categorization • Relate Risk with source • People, Process, Environment & Technology • Prioritize and Categorize • Record Risk register with consequences Risk Probability • Measure the likelihood of occurrence • Probability and impact assessment • Register Updates Risk Control • Activity to control upon impact • Approach to minimize risk • Avoid, Transfer, Mitigate, Accept Plan • Positive Risk / Opportunities • Risk Register Updates Risk Control • Implement Risk Avoidance • Track and control risk

  19. Change Management Approach Salient features of our approach Governance Execution 1 2 3 Roll-out the frame (“Grow”) “Prove” the frame Develop and “test” frame to embed change GET YOUR ‘A –TEAM’ GOD LIES IN DETAILS Map all risks – No shortcuts EXECUTE First step needs to be right mASTERTransition Execute to strategic and operational targets Co-dev sol’n / gap assessment Develop transition plan Continuous improvement SET YOUR PILOT FRAME Trade off Size vs. ease of implementation (complexity X resistance) Risk Management Develop trans. plans mASTERtransition Continuous Improvement Knowledge Base Create Key stroke level document Co-create roll-out plan Develop trans. plans mASTER transition Focus on getting it right first, then move to continuous improvements …………………………………. Program manage Program manage GET THE RIGHT STAKEHOLDERS Ability to influence is critical In-line governance (within program) CELEBRATE SUCCESS Create excitement, get promoter base to endorse Set and align strategic goals Monitor-Resolve-Manage Risk Set and align operational targets – timelines, KPIs, SLAs Re-set targets basis performance and expectations Baseline goals and aim higher Set operational targets – timelines, KPIs, SLAs Who you communicate to is important; what you communicate even more Account governance Leadership alignment Bottom-up and top-down transparency Recognize and reward Value creation through step changes Stakeholder management Stakeholder communication Dvp. communication plan (who-when-what) Create communication materials Track communication impact

  20. Thank you Visit us at www.techmahindra.com

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