Webinar Optimize the Lifecycle of Payments to Insights through Technology & Process Speakers • Roger Poirier Assistant Controller, La Quinta Management LLC • Lilah Stone Director of Financial Applications, La Quinta Management LLC • Ramaswamy Subramanian Head Global Operations -Datamatics Global Services 12/04/2013 11 AM - 12 PM EST
Know how you can “Optimize the Lifecycle of Payments to Insights through Technology & Process”. Check key points covered by Guest Speakers, Roger Poirier, Assistant Controller & Lilah Stone, Director of Financial Applications of LQ Management LLC, who shared the success story of leveraging automation in their Finance Back Office to enhance business productivity.
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Transcript
Webinar
Optimize the Lifecycle of Payments to Insights
through Technology & Process
Speakers
• Roger Poirier
Assistant Controller, La Quinta Management LLC
• Lilah Stone
Director of Financial Applications, La Quinta Management LLC
• Ramaswamy Subramanian
Head Global Operations -Datamatics Global Services
12/04/2013
11 AM - 12 PM EST
Agenda
• Introduction to the Panel
• What’s going on in the marketplace & how
is it affecting businesses
• La Quinta’s Journey to Excellence
• La Quinta Overview
• The Need for Change
• Our Recipe for Success
• LQ’s Partnership with Datamatics
• Datamatics Payment Solutions Overview
2
Digital = Mainstream
33
The Importance of Going Digital
44
Goals
55
Top Priorities
66
La Quinta A Journey to Excellence
• Headquarters: Irving, TX
– Approximately $900M Annual Revenue
– Privately held with over 8,000 employees nationwide
• Service Offerings
– One of the leading owner, operator and franchisor of select-service hotels serving the
midscale and upper-midscale markets through more than 800 hotels in the U.S., Canada
About La Quinta Inns and Suites
8
midscale and upper-midscale markets through more than 800 hotels in the U.S., Canada
and Mexico under the “La Quinta Inns & Suites” brand
• Culture
– People, Passion, Integrity, Excellence, Unique
– Excellence
• Do ordinary things extraordinarily well
• Good is not good enough
• Challenge the status quo
8
• The La Quinta creed:
– Make it better, faster and cheaper
• Accounting goals support Corporate goals through:
– Continuous improvement through process review and reengineering
La Quinta Accounting Goals
9
– Continuous improvement through process review and reengineering
– Focus on value added activities
– Eliminate unnecessary costs
– Evaluate and improve partnerships to achieve our goals
9
• Non-PO Based system
– Decentralized vendor relationship and invoice submittals/approvals
• Vendor
– Over 10,000 active vendors
– Terms = 30 days for non-exception vendors
• Paper Checks
– 68K checks per year (1,300 per week)
La Quinta Accounts Payable
10
– 68K checks per year (1,300 per week)
– Over $360M in annual spend
• P-Card Program
– Approximately 700 cardholders
– Over $16M in annual spend
• Virtual MasterCard Program
– Implemented in early 2013
– $60M in annual spend
10
• Department transitioned from San Antonio in 2007
– Little to no personnel transitioned
– Inexperienced staff with little historical knowledge
• Outsourced Accounts Payable process
– Contracted with software provider
– Processor (imaging and workflow) was outsourced
– Timing and compliance issues
– Overall lack of visibility to invoices
La Quinta Accounting – The Need for Change
11
– Overall lack of visibility to invoices
• Financials were impacted
– Downstream areas (Fixed Assets, GL) suffered
– High turnover within the first two years of transition
– Added headcount to combat problems
– Delayed close
• How could this have been prevented?
11
• Assess Business Processes
– Perform business process review
– Determine viable solutions
• Devise a Plan
– Consider other competing projects and resources
– Analyze the business impact
– Develop a realistic time line
Recipe for Success - Project Selection and Implementation
12
– Develop a realistic time line
• Select the Right Vendor
• Follow a Deployment Methodology
– Analyze Success Factors
– Change Management (Communication and Training)
• Monitor Results and take Corrective Action
12
• Implemented a new and improved outsourced AP solution
– Pre-coded invoices with SLAs tied to accuracy
– Required reduced timing of invoice processing with SLAs tied to compliance
– Customization of software catered to La Quinta’s specific needs
– Visibility to invoices as they “move” through the system
– Dynamic reporting of metrics and add hoc data analytics
La Quinta Partners with Datamatics in 2012
13
– Significant reduction in cost
• A showcase project that realized the goal of making it Better, Faster and Cheaper!
13
• Other projects realized
– Virtual MasterCard to pay invoices timelier
– Flash reporting of expenses throughout the month rather as first reported during
close
• Allows for partnering on other projects (Future State)
Benefits of an Effective Partnership
14
• Allows for partnering on other projects (Future State)
– Automated franchise billing
– Automated account reconciliation
14
15
Process
�Payment
Management
�E-invoicing
w/supplier portal
Au
tom
ate
d�Receipts
Management
Going Digital: AP Invoice Automation Options and Strategies
16
Bus iness Object ives
� Invoice Scan +
Workflow
�Price compliance
�Discount
Management
Management
Reduce Costs Increase
Controls
Optimize Working
Capital
Strategic
16
Companies that automate accounts payable operate at 12%12% of
the costs of those that don’t
Companies that operate in an electronic environment capture
250% 250% more early payment discounts
Companies who actively leverage spend data and analysis in their
sourcing process have 67% 67% higher savings compared to those
Companies that automate accounts payable operate at 12%12% of
the costs of those that don’t
Companies that operate in an electronic environment capture
250% 250% more early payment discounts
Companies who actively leverage spend data and analysis in their
sourcing process have 67% 67% higher savings compared to those
•
•
•
17
The Result
sourcing process have 67% 67% higher savings compared to those
that don’t
Companies that automate accounts payable have an 11% 11% higher
contract compliance rate
Visibility of cost is improved by 52%52% in electronic environments
sourcing process have 67% 67% higher savings compared to those
that don’t
Companies that automate accounts payable have an 11% 11% higher
contract compliance rate
Visibility of cost is improved by 52%52% in electronic environments