© 2013 Oldemark LLC

AP WorkflowStephanie ShawDirector, Enterprise Solutions

Bill BehenGrant Thornton LLP

• About The Wendy’s Company• About Grant Thornton• Oracle Footprint• Evolution of the AP Workflow Business Case• Grant Thornton Partnership• Grant Thornton Process and Findings• Current Initiatives

Agenda

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• Founded in 1969 by Dave Thomas in Columbus, Ohio• Headquarters: Dublin, Ohio• Third-largest quick-service hamburger company in the world

• More than 6,500 franchise and Company-operated restaurants in the United States and 28 countries and U.S. territories worldwide.

• About 5,500 locations are franchised, 1,000 company-owned• 2013 Company Revenue: $2.5 billion• 2013 Ave. Annual Sales per US Company restaurant: $1.51 million

The Wendy’s Company

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Grant Thornton LLP

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Grant Thornton International• Revenues of $4.2B• 600 offices worldwide• Nearly 35,000 employees• More than 2,800 partners

To be the leading audit, tax and advisory firm, serving dynamic organizations in our chosen markets.

V I S I O N

Grant Thornton LLP• Revenues of $1.2B • 54 offices nationwide• More than 6,000 employees• More than 500 partners

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Oracle FootprintOracle E-Business Suite (EBS) R12.1.3• Accounts Payables (AP)• Accounts Receivables (AR)• General Ledger (GL)• Fixed Assets (FA)• Property Manager (PN)• Purchasing (PO)• Order Management (OM)• iExpense (OIE)• Inventory (INV)• System Administration• WEBADI

• Workflow Administration• Projects (PA)• Service Contracts (OKS)• Core HR (HCM)• Compensation Workbench (CWB)• Incentive Compensation (OIC)• Oracle Advanced Benefits (OAB)• Oracle Time and Labor (OTL)• Payroll (PAY)• Employee Self Service (ESS)

Oracle Integrated Solutions• Taleo Recruiting• Thomson Reuters ONESOURCE Indirect Tax• Oracle Transportation Manager (OTM) • Cadec

• Oracle WebCenter• Hyperion Planning• Hyperion Enterprise

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• Workplace Digitization

• Reduce Carbon Footprint

• Minimize Restaurant Management Focus on Administrative Tasks

Why

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• Shared Services Model

• Oracle WebCenter Purchase

• Company Transition

Once Upon a Time

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• 2014 Project Restarted

• Gaps Identified

• Disparate business processes

• Lack of data governance

• Oracle EBS deferred maintenance

• Reflection

Fire! Ready! Aim?

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Process Maturity Model

Adapted from the Capability Maturity Model Integration framework developed by Carnegie Mellon University

Proc

ess/

Syst

ems

Evo

lutio

n

Level 5“Optimized”

(World Class)Process is source of competitive dvantage

• Uniform, well-documented process design• Optimized best practices and rigorous performance measurement and process

improvement methodoligies in place• Process risk strategy implemented and managed; automated controls• Knowledge accumulated and shared• Fully integrated work-flow enabled systems & data integration

Level 4“Defined”

(Scaleable)Policies, process and standards defined and institutionalized

• Uniform, well-documented processes; limited performance management focus• Best practice capabilities generally incorporated• Process is generally scalable; minimal dependency upon institutional knowledge• Combination of best-of-breed and integrated technology solutions; limited cross-

application data integratoin• Some automated controls; generally enforced

Process Maturity Continuum Description Key Attributes

Level 3“Repeatable”

(Intuitive)Process repeatable, but dependent o individuals

• Process is generally understood, may not be fully documented• Execution is dependent upon assignment of quality people and “institutional

knowledge”; limited scalability• Select system usage – standard extracts, imports, etc may be developed, but executed

manually; limited data integration• Primarily manual contorls; generally aduitable

Level 2“Initial”

(Ad Hoc/Chaotic)Dependent on heroics, institutional capability lacking

• Undefined – process cannot be consistently repeated• Relies on initiative & “Just do it” mentality of key people• Heavy use of Excel, Access, etc.; manual extracts from core systems• No data integration• Manual controls; limited enforcement & audit ability

Level 1“Incomplete”

(Non-Existent)Complete lack of any recognizable processes

• No definable process exists – function performed differently each time• Heavily manual / paper-based• Automation developed “on the fly”• Limited to no auditable contorls

Alignment to Strategic Objectives

Risk of Failure

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Current vs. Future State Vision

Supplier Setup and Maintenance

Item Setup & Maintenance

Invoice Entry/Creation

Invoice Approval

Process Payment

Reconcile Payment

Current State

Proposed Future

Level 1 Level 2 Level 3 Level 4 Level 5AP Business Process

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What We Learned

Available ERP Functionality is Under Utilized

Invoice Approval Process is Paper Based

Unable to generate/provide spend analysis reporting

Limited Early Payment Discount Terms Currently Setup

Invoice Submission is Highly Decentralized; Requesters May Hold Onto Invoices for Over 30 Days

Item Master has been Neglected Over Time

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Root Cause

30% Poor Process Definition, Execution, or Supporting Organizational Structure

40% Not Fully Leveraging the Existing ERP Modules

30% Lack of Enabling Systems/ERP Modules

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Benchmarking Utilizing APQC

Key Activities• Complete Rapid

Assessment Data Collection Process

• Submit to APQC

Data Collection

Analysis Results Review

Key Activities• APQC/GT prepares results• Additional follow-up based

upon anomalies in data set• Provide scorecard results

to client • 25, Median, and 75

percentile results within industry

Key Activities• Review results and discuss

root causes for gaps• Prioritize which gaps the

team should focus on filling• Identify target metric

values

Deliverable• Benchmarking Results

Deliverable• Prioritized Gaps• Target Metric Values

for Future State

Deliverable• Completed Data

Collection Spreadsheet

2 – 3 Weeks 1 - 2 Weeks 2 – 3 Weeks

Validation of Findings Through Benchmarking

• The following Accounts Payable process metrics were benchmarked…• Total cost to perform the process "process accounts payable" per $1,000 revenue• Personnel cost to perform the process "Process accounts payable" per $1,000 revenue• Value of purchases (in millions) per "process accounts payable" FTE• Cycle time in hours to enter manual invoice data in to the system• Percentage of invoice lines that are matched the first time• Percentage of invoice line items paid on time• Number of FTEs that perform the process "Process accounts payable (AP)" per $1 billion revenue• Percentage of discounts available that are taken• Percentage of disbursements that are first time error free• Percentage of invoice line items matched with a PO• Percentage of invoice line items received electronically• Total cost to perform the process "Process expense reimbursements" per $1,000 revenue• Personnel cost to perform process "Process expense reimbursements" per $1,000 revenue

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Benchmarking Utilizing APQC

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Time to Realize the Vision

Inefficient Business Process

Lack of Enabling Key Technology

Unable to Generate

Spend Analysis Reporting

• Reduced invoice cycle time• Opportunity to better take advantage of early

payment discounts• Existing audit deficiencies remediated• Suppliers empowered to maintain information

and inquire on processing status• Enable smarter buying decisions via spend

analysis reporting• More transparency surrounding spend• Consistent use of transactional elements to

support enhanced reporting (e.g, purchasing category)

• Via use of imaging technology, enable resources to focus on value add tasks vs. manual data entry and chasing invoices

• Electronic invoice approvals using Oracle AME• Suppliers empowered to electronically

participate in the AP process via Oracle iSupplier Portal

• Reduced storage and/or destruction costs

Identify and Implement Key

Technology Enablers

Build Reporting Capability After

Driving Increased Transaction Discipline

Re-engineer Process Assuming

Central Invoice Submission and

Supplier Collaboration

The Expected OutcomeThe

ProblemThe

Imperative

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Prioritized Phases

QUICK WINS(1 – 2 MONTH DURATION)

Simple process or technology changes/enhancements resulting in value to the organization; To-Be process communicated/accepted & imaging technology selected/procured

Foundational(3 – 5 MONTH DURATION)

To-Be AP business process & technology implemented; initial group of suppliers on-boarded to iSupplier Portal

Increased visibility available as enhanced reporting available to stakeholders

Extend(2 – 3 MONTH DURATION)

To-Be AP process and enabling technology stabilizes; next group of suppliers on-boarded to iSupplier Portal

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Prioritized Phases

Current State Current State

People

Process

Technology

Quick Wins

Foundational

Outcome

Vision

Extend

Quick Wins Provide Immediate Value

Process Buy-In and New Imaging Technology Selected; Basic Understanding of BI Capability Established

1 – 2 Months

3 – 5 Months

2 – 3 Months

A Leading Practice AP Process That Drives Efficiencies and Value Across the Organization

Socialize and Obtain Buy-In/Acceptance of To-Be AP Process

Stratify Suppliers for Applicability & On-Boarding Sequence to iSupplier Portal

Supplier Clean-Up & Enablement for iSupplier Portal Group 1 to Group X

Implement Oracle iSupplier Portal for Supplier Group 1 to Group X

Select and Procure Imaging Solution

Execute Change Assurance and Solution Adoption Strategy to Wendy's and Supplier Stakeholders/Users

Enhance Use of AP Subject Areas in Financial Analytics (e.g., Spend Analysis)

Enable Oracle Cash Management for Payment Reconciliation

Utilize Oracle AMEfor Requisition and Invoice Approvals

Foundational Business Process & Technology Implemented; Initial Group of Suppliers On-Boarded to iSupplier Portal

Reporting Capabilities Enhanced after Initial POC

Additional Suppliers On-Boarded to iSupplier Portal

Implement Imaging Solution

Proof of Concept: AP Subject Areas in Financial Analytics

Implement To Be AP Process Including Centralized Submission of Invoice& System Approvals

Supplier Clean-Up & Enablement for iSupplier Portal Group X to Group X

Execute Change Assurance and Solution Adoption Strategy to Wendy's and Supplier Stakeholders/Users

Payment Reconciliation Process

Extend Use of iSupplier Portal to Group X to Group X

Oracle ADI or 3rd Party to Upload Select Manual Invoices

Implement Personalization to Warn of Duplicate Invoices

Enter Invoices Related to Manual & Wire Payments in Oracle

Communicate Roadmap to Broader Team & Stakeholders

Identify Organizational Impact Resulting From New Process & Technologies

Implement Organizational Changes

Item Master Rationalization and Clean-Up

Establish Item Master Maintenance Process

• Developed a Business Case that resulted in a payback of 1.9 years• Primary Cost Drivers

• Imaging Software & Hardware• Implementation Services• Incremental Internal Resource

• Primary Benefit Drivers• Increased Labor Productivity• Early Payment Discounts• Reduced Shipping Costs• Reduced Storage and Retrieval Costs

• Business Case Included in Current 2015 Budgeting/Planning Cycle

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Business Case

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• Q4 2014: Deferred Maintenance/Patching

• Q4 2014/Q1 2015: Infrastructure/Technology Enablement

• Q4 2014/Q1 2015: Restaurant Invoice Process Streamline

Current Initiatives

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