John B. Sanfilippo & Son, Inc. Automated AP Invoice processing Case Study

1. John B. Sanfilippo & Son, Inc. Automated AP Invoice processing Case Study

2. JBSS Background • John B. Sanfilippo & Son, Inc. (JBSS) is a processor and marketer of tree nuts and peanuts in the United States. • JBSS also markets, manufacture or process, a product line of food and snack products, including peanut butter, candy and confection, natural snacks and trail mixes, sunflower seeds, dried fruit, corn snacks, sesame sticks and other sesame snack products. • Headquartered in Elgin Illinois with 5 production facilities across the US • Brands include Fisher, Orchard Valley Harvest, Sunshine Country and many other private label brands • Public company – NASDAQ:JBSS

3. JBSS QAD Background • Implemented QAD in 1991 – 20+ year user of QAD Applications • Currently running QAD 2010 SE (.NETUI & Character) • 460+ QAD Users • Tentative plans to upgrade to QAD EE in 2013

4. JBSS AP Department Organization • Decentralized Purchasing – 5 production facilities responsible for all purchasing and inventory (i.e. PO Receipts, Packing Lists) • Centralized Account Payable Group in Elgin Illinois responsible for Invoice processing & payments for all production facilities • Elgin AP Group process both production & MRO purchases for the company • Karen Hill AP Manager with 3 direct reports

5. Pre DocLib - JBSS AP Challenges • Transactions – PO Receipts performed at the production facilities. AP Department unaware of any receipt issues • Documents – Packing Lists and other receipt information at the production facilities. Documents being faxed, scanned locally, emailed, sent via intercompany mail • Approvals – Manual process to obtain approval for pricing or quantity discrepancy • Growing company – Decision needed to be made. Do we hire more staff or implement an automated process?

6. JBSS Solution Selection process • Review of several Business Process Management (BPM) solutions including PICS DocLib initiated • PICS DocLib selected for the following reasons: • QAD Complementary Solution Partner – Already integrated to QAD, no need for custom interface • QAD Knowledge – PICS staff demonstrated a deep knowledge of QAD Financials • QAD Transaction Processing – DocLib automatically creates QAD Vouchers using QAD’s Qxtend technology • Progress technology – Same core technology as QAD

7. JBSS Project Scope • Phased rollout for multiple document types starting with JBSS’s North Carolina production facility • Document Types include: • Purchase Order – Stored image of QAD Purchase Order in DocLib • Packing Lists – Remote sites scan Packing List documents for Purchase Orders • Invoices for Purchase Orders – Production items • Invoices for Memo Purchase Orders – Non-Production items • Invoices without Purchase Orders – MRO/Expense type purchases

8. JBSS Project Scope • Packing Lists and Invoices are scanned using ‘Intelligent Document Capture’ – OCR (Optical Character Recognition) • Documents are scanned via dedicated scanners , ‘MFP’ scanners and by adding files into ‘Hot Folders’ • Due to DocLib’s integration with QAD, limited number of data elements need to be OCR’ed. Examples: • Invoice Number • Invoice Date • PO Number • Amounts • Intelligent Capture requires no templates or sample forms. Auto-find technology learns the document’s data locations as you go. Just point & click to read the required field

9. JBSS Project Scope – Invoice Processing BPM • Exception based processing – Apply predefined business rules to highlight exceptions • If an Invoice IS NOT an exception – Automatically Voucher with no human interaction. Over 90% of JBSS’s Invoices for Purchase Orders are not an exception • If an Invoice IS an exception • Determine what the exception is (i.e. Invoice Cost Higher than Open Receipt amount) • Determine if the difference is within a predefined tolerance level • Link all associated documents to the Invoice to provide users a ‘packet’ of documents to review • If needed route Invoice to the correct Buyer, obtain approval or rejected via DocLib Web Email approval • If approved, create automatically create QAD Voucher • Every Invoice without Purchase Order not only requires approval, the user/approver must enter the correct GL Distribution for the Invoice. • Invoices without Purchase Order contain multi-level approval logic based on the Invoice Amount.

10. JBSS Sample Workflow

11. PICS & DocLib • PICS, the company, was established in 1995 as one of the first QAD Alliance Partners • PICS developed DocLib for QAD Users offering seamless integration with QAD’s Enterprise Applications • 2009 DocLib was selected as a Complementary Solution for QAD Enterprise Applications • DocLib v4.0 released – web based with docAlpha Intelligent Document Capture & QAD QXtend Transaction Automation Engine

12. Enterprise Document & Process Management Business Process Management QAD On-Demand QAD Transaction Automation Secured Document Database Email Connector & Alerts Audit History Version Control Intelligent Document Capture

13. Key DocLib Features • Intelligent Document Capture • Workflow/BMP • Transaction Processing Engine • QAD Integration

14. Intelligent Document Capture Process Auto-Find Any Document in QAD “ERM” Multiple “Hot” Folders Auto-Find Email Attachments Paper Scanning

15. Workflow and Transaction Processing Capture Process Invoices are scanned or imported via email or hot folders Documents processed by recognition server (OCR, Classification, Split, etc.) Verification Station Export of image and index values DocLib _scan routine Additional Indexing Non Duplicate Invoice? Non QAD ERS PO? PO Received? Inv Cost Not > PO Cost? PO Cost Not < Inv Cost? Yes Yes Yes Yes Yes No No No No No Send to AP Clerk Optional Variable Email to Buyer or Requester Send to AP Clerk Optional Variable Email to Buyer or Requester Send to AP Clerk Duplicate Invoice Notification Save to Reject Folder Inv/GL Total Match? Set Duplicate AP Clerk Add/Edit Keywords Yes No DCE Error Save to Duplicate Folder Save to Folder DCE 28.1 Voucher Maint

16. Why should I automate my business processes? • Automating your business process increases productivity • Provides more visibility and better decision making • Dramatically improves the level of customer service • Eliminates unnecessary steps required to create transactions in QAD • Reduces the cost per transaction • Increases the amount of transactions that can be handled by existing staff = DO MORE WITH LESS • Reclaims labor hours which can be re-deployed

17. DocLib & QAD Integration • DocLib Runs from within the .NET UI • Browse DocLib Database directly from a QAD Browse • ERM (Electronic Reports Management) Print & publish a digital copy to DocLib automatically • QXtend Generates QAD Transactions - AP Vouchers, Sales Orders, PO Receipts and other key transactions

18. Where are the “Real” Efficiency Gains

19. In Summary • Streamline and control your business processes with workflow automation • Generate QAD transactions from scanned documents with Intelligent Document Capture and DocLib’s Data Capture Transaction Engine • Reclaim a significant number of labor hours that can be redeployed in areas in which you need additional human resources • Greatly reduces your business’ reliance on paper • Eliminate the labor cost associated with a manual filing process by storing your business documents in a secured DocLib Database • Further leverage your investment in QAD Enterprise Applications

20. Key Accounts

21. Software Demo