Orange County Convention Center
Orlando, Florida | June 3-5, 2014
How General Mills Built a More Efficient and Standardized Accounts
Payable Process by Upgrading to SAP Vendor Invoice Management
(VIM) 6.0 by OpenText
Joline Anderson & Jolene Budde
AGENDA
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Introductions
General Mills Overview
Accounts Payable Overview
Vendor Invoice Management (VIM) Timeline
Business Need for AP Upgrade and Centralization
Project Details
Project Highlights and Challenges
Best Practices
Learning Points
Questions
A Heritage of Innovation & Brand Building
U.S. licensing rights
to Yoplait are acquired
Betty Crocker created
Cheeri Oats debut
Yoplait
acquisition
CPW
joint venture
launched
Cadwallader Washburn
builds first flour mill
1866
1869
1903
1921
1924
1928
1941
1961
1977
1984
1990
2001
Häagen-Dazs goes
international (Japan)
Green Giant
founded as
Minnesota
Valley Canning
General Mills
stock trades
James Ford Bell
Research Center
opens
Charles Pillsbury
invests in first
Minneapolis mill
Wheaties
launches as
Whole Wheat Flakes
General Mills
completes purchase
of cross-town
rival Pillsbury
2011
Yoki
acquisition
2012
Who we are Today
• One of the world’s largest food
companies
• Products marketed in more than
100 countries on six continents
• 40,000 employees
• $17.8 billion in fiscal 2013 net
sales*
Accounts Payable Structure
Financial Shared Services part
of Global Business Solutions
Governance team (12) – global
process owners
AP Processors (120) – 3rd party
Scan Centers – 3rd party
Accounts Payable Overview
 AP Invoice Volume
 Accounts Payable processes more than 1.4MM invoices totaling more
than $7B each year
 About 5 invoices per minute
 Business conducted in 2 SAP instances
 92% Invoices paid within terms
Invoice Type
33%
22%
45%
Invoice Receipt
24%
PO
Freight
Non PO
20%
56%
EDI
Paper
Email
Accounts Payable Overview
 Locations running AP on Vendor Invoice Management
 US and Canada
 UK, Switzerland, Germany, France, Norway, Sweden, Spain, United
Arab Emirates, Australia, New Zealand, South Africa, Korea,
Singapore, Thailand, Malaysia, Argentina, and Mexico
Account Payable Timeline
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OpenText Vendor Invoice Management (VIM) for SAP® Solutions is a prepackaged application
that works within SAP to streamline the accounts payable process
 Also sold by SAP as SAP Invoice Management by OpenText
Business Need
Objective
Benefits
Business
Outcomes
• Standardize, centralize, and globalize finance transactional processes throughout the
company
• Drives process efficiency through a focused and highly skilled workforce
• Ensures uniform application of processes throughout the organization
• Provides enhanced controls, reporting ,and transparency
• Free up employees to focus on strategic efforts.
• Improve key processes focusing on right work right role mentality
• Reduce turn around time on open items
• Reduce lost discounts
• Identify and improve bottlenecks in the process
• Improve on-time payments
Opportunities
 Standardizing Multiple SAP Systems
 Multiple outdated versions of software
 Aging AP Implementation
 Leverage New Technology
 Update Business Practices
 Increase business process maturity level globally
 Consolidated and consistent business analytics
System Solution
 2 Enterprise instances of SAP
 North American and International both with Vendor Invoice
Management (VIM) version 6.0
 Calls made to HR for approvals
North America
SAP
Business
Suite
Vendor
Invoice
Mgmt. (VIM)
ECC 6.0
VIM
3.4.7
Global
HR
ECC 6.0
International
ECC 6.0
VIM
5.1.6
System Solution
 2 Enterprise instances of SAP
 North American and International both with Vendor Invoice
Management (VIM) version 6.0
North America
Sap
Business
Suite
ECC 6.0
Vendor
Invoice
Mgmt. (VIM)
VIM 6.0
Global
HR
ECC 6.0
International
ECC 6.0
VIM 6.0
Vendor Invoice Management Overview
 Vendor Invoice Management (VIM)
 Issue resolution, tracking, approvals, routing and reporting
 Components of Open Text VIM
VIM Reporting Analytics
Image
Scan
Document
Processing
Electronic
Invoice
Invoice
Approval
Approval
Portal
Exception
Processing
Approval on
Mobile
Device
Content Repository
VIM components
Storage component
Invoice Inputs
VIM Process
North America Upgrade Project
Upgrade
System
Utilize and
Build
Functionality
Incorporate
flexibility for
new initiatives
Optimize
Business
Process
Build
Enhanced
Analytics
Optimize Business Process
 Conducted Value Stream Mapping Sessions
 Identified over 250 process improvements
 Ranked and determined scope
Non PO
Mobile
Approval
EDI image
creation
Auto-Reject
to Vendor
Emails
Streamlined
External Freight
Invoicing
Process
Refer for
Information
(Email)
International Upgrade and Rollout Project
Upgrade
System
Standardize
Processing
Enhanced
Tracking and
Reporting
Centralize
Accounts
Payable
Incorporate
Local
Practices
Centralized Process: Non-PO process
Current: Manual & Decentralized
Vendors send
Invoices to local AP &
Individuals
Invoices are distributed to
1st approver
1st approver manually
signs and codes the
invoice
If accounting is
invalid, follow-up
w/ 1st approver
Workflow: Automated and Centralized
Vendors send Invoices to
central scanning location
Invoices are scanned into
SAP
Centralized AP enters
invoice data and routes to
the 1st approver
1st approver delivers
invoice to 2nd approver for
signature
1st approver codes and
approves, system
determines 2nd approver
Invoice is delivered to AP
for posting
2nd approver approves,
system routes to AP
AP manually validates
approvals & posts invoice
in SAP
Validation of invoice posted
vs. paper invoice prior to
payment run
Payment
Centralized AP posts the
invoice
Payment
Daily Audits
performed
System validates
accounting
Project Highlights
 Enhanced Controls
 Duplicate Checking
 Automated Approvals
 Invoice Image Availability
 Maintain Statutory Requirements while Building
Efficiencies
 Enhanced Business and System Knowledge
 Global Relationship Building and Communication
Avenues
 Leverage Best Practices Across Locations
 Reporting and Business Analytics
ROI
 Reduced lost discounts by 60%
 Increased DPO (Days Payable Outstanding) by 1.5 days
 AP Process efficiencies
Bottleneck
Identification
Workflow
Routing
Capabilities
Workflow
Tracking
Metrics
Gathering
Duplicate
checks
EDI
Images
Project Challenges
 Various Sub-Projects within Overall Project
 Invoice Intake
 Distributed Project Team
 Time Zones
 Meetings Outside of Core Work Hours
 Identifying Statutory Requirements vs Local
Practices
 Multiple Projects Impacting Same Business and
System Resources
 3rd Party Partnership Communication and
Expectations
 Complex and Detailed Reporting Requirements
Learning Points
 Learning Curve of New Process and Product
 Capturing and Implementation Pre-existing
Customizations
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 Not plug and play
Identify Concurrent Project and Risks Associated
Change is HARD
Allow Adequate Stabilization Period
Delivered Reporting not Sufficient for Business
Objectives
Best Practices
 Understanding Current Business and System
Processes
 Identifying pain points
 Key Project Points in Person
 Face to face time builds relationships and gains trust
 Set Reasonable Stabilization Expectations
 Location Driven Change Management
 Knowledgeable Project Team
 Consultant
 Analyst
 SME’s
Final Product
 2 Enterprise instances of SAP
 North American and International both with Vendor Invoice
Management (VIM) version 6.0
 Calls made to HR for approvals
North America
Sap
Business
Suite
ECC 6.0
Vendor
Invoice
Mgmt. (VIM)
VIM 6.0
Global
HR
ECC 6.0
International
ECC 6.0
VIM 6.0
FOLLOW US
THANK YOU
THANK YOU FOR PARTICIPATING
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SESSION CODE: 1109
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