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Applying Procurement Best Practices to Travel & Entertainment Expenses

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SAP Ariba
SAP Ariba

Did you know travel and entertainment (T&E) costs are the second-most difficult operating expense line item for businesses to control? With predictive analytics, however, you can make more proactive decisions to better manage that spend. At the same time, you can provide stakeholders with analytics that help drive policy decisions. In this session, Concur will also demonstrate how you can deliver insights to targeted personas and make sure you’re delivering the right information to the right stakeholder at the right time.

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#AribaLIVE @ariba Applying Procurement Best Practices to Travel and Entertainment Reporting; Total Employee Spend Management Jacqui Carey Sr. AP Consulting Manager Imran Gohar Solutions Consultant 8 April 2015 © 2015 Ariba – an SAP company. All rights reserved.
#AribaLIVE @ariba Invoice Expense Mileage Client Entertainment Office Supplies Marketing/Training Train Ticket Hotels Airline Ticket Utility Bills Software / Hardware Telecomms Other £Employee Approval Manager Employee Reimbursed Supplier Invoice Paid Process & Audit Accounts Payable Introduction into Employee Spend © 2015 Ariba – an SAP company. All rights reserved.2
#AribaLIVE @ariba Concerns on Employee Spend • How many spend channels do you have?  Card spend, expenses, vendor purchases (Non PO), Travel • Does your organisation have the whole picture? • Is your company T&E policy up to date or out of date? • Do your employees even know the rules? • How long does it take to reconcile data? • How near to real time is it? © 2015 Ariba – an SAP company. All rights reserved.3
#AribaLIVE @ariba © 2015 Ariba – an SAP company. All rights reserved.4 Hindsight Is Always 20/20
#AribaLIVE @ariba © 2015 Ariba – an SAP company. All rights reserved.5
#AribaLIVE @ariba Setting the Foundation Connect relevant spend data Drive transparency based on personas Promote effortless action and change © 2015 Ariba – an SAP company. All rights reserved.6
#AribaLIVE @ariba@ariba#AribaLIVE Think About It © 2015 Ariba – an SAP company. All rights reserved.7 What gets measured, gets managed.” –Peter Drucker
#AribaLIVE @ariba Connected 8 Single source of truth
#AribaLIVE @ariba Real World Example © 2015 Ariba – an SAP company. All rights reserved.9 G.D.S. Preferred booking channel Credit cards HR/ hierarchy Expense
#AribaLIVE @ariba Clean and correct normalized data Understand audience and personas Metrics to drive change and action Right Data, Right People, Right Way © 2015 Ariba – an SAP company. All rights reserved.10
#AribaLIVE @ariba Different Audiences Have Different Needs CFO PROCUREMENT BUYER ACCOUNTS PAYABLE BUDGET OWNER TRAVEL MANAGER © 2015 Ariba – an SAP company. All rights reserved.11
#AribaLIVE @ariba Solving Problems and Taking Action © 2015 Ariba – an SAP company. All rights reserved.12 A real decision is measured by the fact that you’ve taken a new action. If there’s no action, you haven’t truly decided.” –Tony Robbins
#AribaLIVE @ariba Procurement Buyer WHAT’S IMPORTANT TO THEM? • Compliance/spend to preferred programs • Leakage • Spend by vendor • Top city pairs • Fare analysis • Averages – air, meal, hotel, car rental HOW DOES DATA HELP THEM? • Contract management • Improved leverage in negotiations • Identify new opportunities • Benchmarking © 2015 Ariba – an SAP company. All rights reserved.13
#AribaLIVE @ariba © 2015 Ariba – an SAP company. All rights reserved.14
#AribaLIVE @ariba Procurement Buyer REAL WORLD EXAMPLE Connected and transparent • Negotiated discounts on £1m – truth actual spend was £1.75M • Further £750K through expenses for travel, office supplies • 20% of spend outside of PO process © 2015 Ariba – an SAP company. All rights reserved.15
#AribaLIVE @ariba Travel Manager WHAT’S IMPORTANT TO THEM? • Cost savings • Next practice vs. best practice • Policy compliance • Employee satisfaction and adoption • Where are my travellers? HOW DOES DATA HELP THEM? • Focus on “low-hanging fruit” • Better management interactions • Greater leverage with suppliers • Identify correct policies © 2015 Ariba – an SAP company. All rights reserved.16
#AribaLIVE @ariba Value-Based Dashboards | Travel © 2015 Ariba – an SAP company. All rights reserved.17
#AribaLIVE @ariba Value-Based Dashboards | Policy Example All about compliance • What type of policy violations exist? • Who is violating policy? • What’s the best way to manage exceptions?  Advance purchase analysis  Credit card utilization  Credit card aging  Flagged policy violations  Business meals  Airline tickets  Hotel room rate  Missing receipts  Over dollar threshold © 2015 Ariba – an SAP company. All rights reserved.18
#AribaLIVE @ariba REAL WORLD EXAMPLE Connected and transparent • Perceived Minimal leakage – actual 20% through expenses • Booked vs actual equated to £250K • Didn’t always know where travelers were as many not using travel programme Travel Manager © 2015 Ariba – an SAP company. All rights reserved.19 #AribaLIVE @ariba
#AribaLIVE @ariba Integration and configuration Smart triggers based on data and events Drive visualization into natural work flow and line of sight Effortless Data working for you, not you working for data © 2015 Ariba – an SAP company. All rights reserved.20
#AribaLIVE @ariba Accounts Payable WHAT’S IMPORTANT TO THEM? • Payments terms  Employee  vendor • Policy compliance • Authorisation • Lost invoices/receipts • Exception handling • VAT • Accruals HOW DOES DATA HELP THEM? • Identify accurate processing times • Flags out of policy spend • Identifies bottlenecks • Electronic images • Highlights issues • Calculated and identifies lost VAT • Instant cash flow, management and liability data © 2015 Ariba – an SAP company. All rights reserved.21
#AribaLIVE @ariba Account Payable REAL WORLD EXAMPLE Connected, transparent, and effortless • £50K invoice sat on Partners desk • £150K in late payments fees and accounts put on hold • Missed out on £300K worth of early payment discounts © 2015 Ariba – an SAP company. All rights reserved.22
#AribaLIVE @ariba Budget Owner WHAT’S IMPORTANT TO THEM? • Budget management • Policy compliance • Ease of interpretation HOW DOES DATA HELP THEM? • Granular focus within their scope to make better decisions based on budget • Keeps them on target and on budget • Give them ability to take action that much quicker © 2015 Ariba – an SAP company. All rights reserved.23
#AribaLIVE @ariba Budget Owner REAL WORLD EXAMPLE Connected, transparent, and effortless • Employee found out she was going to be “let go” in two weeks • Charged $8K on corporate card • Company didn’t find out until trans hit aging report (30 days later) © 2015 Ariba – an SAP company. All rights reserved.24
Actionable Analytics | Configuration 25
Actionable Analytics | Configuration 26
#AribaLIVE @ariba Budget Owner REAL WORLD EXAMPLE Connected, transparent, and effortless • Managers Monitor via Actuals • Budget Integration • Learn & Act vs. Learn THEN Act © 2015 Ariba – an SAP company. All rights reserved.27
Actionable Analytics | Configuration 28
Actionable Analytics | Configuration 29
Actionable Analytics | Configuration 30 36,000 Spend to budget is 80% 21 Days left in budget period The combination of actual spend, accruals, and trips booked but not taken has now combined to hit 80% of your travel and expense budget for the quarter
#AribaLIVE @ariba The Next Frontier Please attend session 107 for more detailed information© 2015 Ariba – an SAP company. All rights reserved.31

More Related Content

Applying Procurement Best Practices to Travel & Entertainment Expenses

  • 1. #AribaLIVE @ariba Applying Procurement Best Practices to Travel and Entertainment Reporting; Total Employee Spend Management Jacqui Carey Sr. AP Consulting Manager Imran Gohar Solutions Consultant 8 April 2015 © 2015 Ariba – an SAP company. All rights reserved.
  • 2. #AribaLIVE @ariba Invoice Expense Mileage Client Entertainment Office Supplies Marketing/Training Train Ticket Hotels Airline Ticket Utility Bills Software / Hardware Telecomms Other £Employee Approval Manager Employee Reimbursed Supplier Invoice Paid Process & Audit Accounts Payable Introduction into Employee Spend © 2015 Ariba – an SAP company. All rights reserved.2
  • 3. #AribaLIVE @ariba Concerns on Employee Spend • How many spend channels do you have?  Card spend, expenses, vendor purchases (Non PO), Travel • Does your organisation have the whole picture? • Is your company T&E policy up to date or out of date? • Do your employees even know the rules? • How long does it take to reconcile data? • How near to real time is it? © 2015 Ariba – an SAP company. All rights reserved.3
  • 4. #AribaLIVE @ariba © 2015 Ariba – an SAP company. All rights reserved.4 Hindsight Is Always 20/20
  • 5. #AribaLIVE @ariba © 2015 Ariba – an SAP company. All rights reserved.5
  • 6. #AribaLIVE @ariba Setting the Foundation Connect relevant spend data Drive transparency based on personas Promote effortless action and change © 2015 Ariba – an SAP company. All rights reserved.6
  • 7. #AribaLIVE @ariba@ariba#AribaLIVE Think About It © 2015 Ariba – an SAP company. All rights reserved.7 What gets measured, gets managed.” –Peter Drucker
  • 9. #AribaLIVE @ariba Real World Example © 2015 Ariba – an SAP company. All rights reserved.9 G.D.S. Preferred booking channel Credit cards HR/ hierarchy Expense
  • 10. #AribaLIVE @ariba Clean and correct normalized data Understand audience and personas Metrics to drive change and action Right Data, Right People, Right Way © 2015 Ariba – an SAP company. All rights reserved.10
  • 11. #AribaLIVE @ariba Different Audiences Have Different Needs CFO PROCUREMENT BUYER ACCOUNTS PAYABLE BUDGET OWNER TRAVEL MANAGER © 2015 Ariba – an SAP company. All rights reserved.11
  • 12. #AribaLIVE @ariba Solving Problems and Taking Action © 2015 Ariba – an SAP company. All rights reserved.12 A real decision is measured by the fact that you’ve taken a new action. If there’s no action, you haven’t truly decided.” –Tony Robbins
  • 13. #AribaLIVE @ariba Procurement Buyer WHAT’S IMPORTANT TO THEM? • Compliance/spend to preferred programs • Leakage • Spend by vendor • Top city pairs • Fare analysis • Averages – air, meal, hotel, car rental HOW DOES DATA HELP THEM? • Contract management • Improved leverage in negotiations • Identify new opportunities • Benchmarking © 2015 Ariba – an SAP company. All rights reserved.13
  • 14. #AribaLIVE @ariba © 2015 Ariba – an SAP company. All rights reserved.14
  • 15. #AribaLIVE @ariba Procurement Buyer REAL WORLD EXAMPLE Connected and transparent • Negotiated discounts on £1m – truth actual spend was £1.75M • Further £750K through expenses for travel, office supplies • 20% of spend outside of PO process © 2015 Ariba – an SAP company. All rights reserved.15
  • 16. #AribaLIVE @ariba Travel Manager WHAT’S IMPORTANT TO THEM? • Cost savings • Next practice vs. best practice • Policy compliance • Employee satisfaction and adoption • Where are my travellers? HOW DOES DATA HELP THEM? • Focus on “low-hanging fruit” • Better management interactions • Greater leverage with suppliers • Identify correct policies © 2015 Ariba – an SAP company. All rights reserved.16
  • 17. #AribaLIVE @ariba Value-Based Dashboards | Travel © 2015 Ariba – an SAP company. All rights reserved.17
  • 18. #AribaLIVE @ariba Value-Based Dashboards | Policy Example All about compliance • What type of policy violations exist? • Who is violating policy? • What’s the best way to manage exceptions?  Advance purchase analysis  Credit card utilization  Credit card aging  Flagged policy violations  Business meals  Airline tickets  Hotel room rate  Missing receipts  Over dollar threshold © 2015 Ariba – an SAP company. All rights reserved.18
  • 19. #AribaLIVE @ariba REAL WORLD EXAMPLE Connected and transparent • Perceived Minimal leakage – actual 20% through expenses • Booked vs actual equated to £250K • Didn’t always know where travelers were as many not using travel programme Travel Manager © 2015 Ariba – an SAP company. All rights reserved.19 #AribaLIVE @ariba
  • 20. #AribaLIVE @ariba Integration and configuration Smart triggers based on data and events Drive visualization into natural work flow and line of sight Effortless Data working for you, not you working for data © 2015 Ariba – an SAP company. All rights reserved.20
  • 21. #AribaLIVE @ariba Accounts Payable WHAT’S IMPORTANT TO THEM? • Payments terms  Employee  vendor • Policy compliance • Authorisation • Lost invoices/receipts • Exception handling • VAT • Accruals HOW DOES DATA HELP THEM? • Identify accurate processing times • Flags out of policy spend • Identifies bottlenecks • Electronic images • Highlights issues • Calculated and identifies lost VAT • Instant cash flow, management and liability data © 2015 Ariba – an SAP company. All rights reserved.21
  • 22. #AribaLIVE @ariba Account Payable REAL WORLD EXAMPLE Connected, transparent, and effortless • £50K invoice sat on Partners desk • £150K in late payments fees and accounts put on hold • Missed out on £300K worth of early payment discounts © 2015 Ariba – an SAP company. All rights reserved.22
  • 23. #AribaLIVE @ariba Budget Owner WHAT’S IMPORTANT TO THEM? • Budget management • Policy compliance • Ease of interpretation HOW DOES DATA HELP THEM? • Granular focus within their scope to make better decisions based on budget • Keeps them on target and on budget • Give them ability to take action that much quicker © 2015 Ariba – an SAP company. All rights reserved.23
  • 24. #AribaLIVE @ariba Budget Owner REAL WORLD EXAMPLE Connected, transparent, and effortless • Employee found out she was going to be “let go” in two weeks • Charged $8K on corporate card • Company didn’t find out until trans hit aging report (30 days later) © 2015 Ariba – an SAP company. All rights reserved.24
  • 25. Actionable Analytics | Configuration 25
  • 26. Actionable Analytics | Configuration 26
  • 27. #AribaLIVE @ariba Budget Owner REAL WORLD EXAMPLE Connected, transparent, and effortless • Managers Monitor via Actuals • Budget Integration • Learn & Act vs. Learn THEN Act © 2015 Ariba – an SAP company. All rights reserved.27
  • 28. Actionable Analytics | Configuration 28
  • 29. Actionable Analytics | Configuration 29
  • 30. Actionable Analytics | Configuration 30 36,000 Spend to budget is 80% 21 Days left in budget period The combination of actual spend, accruals, and trips booked but not taken has now combined to hit 80% of your travel and expense budget for the quarter
  • 31. #AribaLIVE @ariba The Next Frontier Please attend session 107 for more detailed information© 2015 Ariba – an SAP company. All rights reserved.31

Editor's Notes

  1. See comment on slide (TD1) Speaker notes Traditional reporting is perfect for looking into the past to see things that happened. Or to find trends in data that is dated and old. Which means that the opportunity to influence change is already gone and the scale of influence on future events is at a macro scale, not micro. Companies and administrators spend a large percentage of their time chasing down data from previous quarters to try and influence macro changes. But what it you had the tools – better yet, your managers had the tools, to address the things that impact their budget in a proactive way that ultimately benefits their department and ultimately the entire company. Catching poor decision-making, policy violations or potentially budget-breaking spend at the time travel is booked or as transactions are charged is one of the easiest ways to help empower managers and ensure your program remains in compliance.
  2. Speaker Notes: Past Where we’re coming from Challenges and focus Present Review year’s accomplishments Future Persona focus Value based dashboards Imbedded analytics Next generation
  3. Talk Track Many Personas within organization can find value in data but each one has different needs. You can literally help empower the entire company. By knowing your audience you can have more effective and meaningful conversations.