Energy & Mining International - Winter 2016 - 9

COLUMNS | INCREASED EFFICIENCY

Winter 2016

(OCR) technology to convert paper
documents into machine-readable data
that can be automatically mapped to
ERP business processes, the cost per
invoice drops to $4.39. Eliminating
paper altogether and adopting e-invoicing reduces invoice processing to
$3.13 each, nearly one-third the cost of
paper invoices.
When you consider the savings from
paperless invoicing alone, consider how
much more efficient and cost-effective
your back office processes would be if
the entire infrastructure was paperless.
In today's digital age, there is no reason
to maintain paper processes.

PLANNING TO INTEGRATE
To automate back office processes
using procure-to-pay, the place to start
is auditing your business workflow.
What steps are required to process an
invoice, generate a JIB, manage paper
tickets, or deal with any routine paper
process that has to do with accounts
payables or receivables? For many
energy companies, the steps are complex because they have to account for
specific contract terms, shipping, taxes
and a host of variables. By mapping
the workflow for each process, you can
automate each step and eliminate the
delays of manual data entry.
Once you have identified the specific steps in the workflow, you can
determine what ERP and procure-topay solutions are best suited to your
business model. Bear in mind that the
more closely you can integrate operations and financial systems, the more
efficient your operation and the greater
your savings.
Rather than worrying about automating different aspects of the back
office by cobbling together various
point solutions, it's best to shop for a
single procure-to-pay vendor that can

design a system that integrates with
your current financial systems. Using a
single resource simplifies deployment
and management. The solution provider should be prepared to assess your
workflow and create a custom design to
automate your business processes.
The design should encompass all
aspects of your accounts payables and
receivables, including:
+ Hierarchy and routing, including multiple departments and
worksites with a process to allocate
invoice ownership and establish
routing rules;
+ Identifying invoice and coding
requirements that map to the
ERP system, including chart of
accounts, cost objects, validation
rules and supplier requirements;
+ User setup, including rules and
permissions, approval authority
settings and approval flow; and
+ Support for special situations such
as advanced discounting, price
books and payment terms.
As part of the conversion process, be
sure to assess savings in operating costs
and overhead and map those savings to
the cost of deploying and end-to-end
automated transaction process. Chances are you will be impressed by the ROI.

END-TO-END VISIBILITY
What will improve your ROI further is
looking beyond just automating common business operations.
Work with your vendors and suppliers to automate their business processes for electronic transactions. Even if
you have integrated your accounting
and ERP systems, if you have to scan
and process incoming paper invoices,
then it's reducing efficiency. Work with
providers to handle all transactions
electronically. There are some procure-

+

to-pay solutions that will offer this
service to suppliers on your behalf.
An increasingly popular transaction
model in the energy industry is the
exchange model. Secure cloud computing has made it easier than ever
to exchange secure transactions, and
a third-party exchange can provide
translation between ERP systems
using standardized data sets. For
example, a drilling supplier may be
using a different ERP system than an
oil company, so to exchange electronic
invoices, they agree to use a common
exchange that handles process translation for them. The third-party data
exchange converts and maps data fields
so the accounting systems can directly
process transactions. The result is faster business processes without having
to do manual conversion.
Once you have all your business operations integrated into a single ERP
infrastructure, you can use the data
to analyze business processes. Simple
reporting can identify problems or delays in operations. Analytics can help
reveal trends and patterns that give
you deeper insight into operations,
such as specific processes or vendors
that cause delays. Once you have a
way to analyze end-to-end data, you
can create realistic performance
benchmarks and identify key performance indicators.
An added bonus of creating an endto-end electronic transaction is you
have an audit trail. Not only can you
identify any problems along the way,
but also you have auditable transactions that you can present to demonstrate regulatory compliance, without
having to dig through paper records.

EFFICIENCY IN THE FIELD
To take back office efficiency even
further, extend it to the field. Wireless

emi-magazine.com 9


http://www.emi-magazine.com

Table of Contents for the Digital Edition of Energy & Mining International - Winter 2016

Contents
Energy & Mining International - Winter 2016 - Cover1
Energy & Mining International - Winter 2016 - Cover2
Energy & Mining International - Winter 2016 - 1
Energy & Mining International - Winter 2016 - 2
Energy & Mining International - Winter 2016 - Contents
Energy & Mining International - Winter 2016 - 4
Energy & Mining International - Winter 2016 - 5
Energy & Mining International - Winter 2016 - 6
Energy & Mining International - Winter 2016 - 7
Energy & Mining International - Winter 2016 - 8
Energy & Mining International - Winter 2016 - 9
Energy & Mining International - Winter 2016 - 10
Energy & Mining International - Winter 2016 - 11
Energy & Mining International - Winter 2016 - 12
Energy & Mining International - Winter 2016 - 13
Energy & Mining International - Winter 2016 - 14
Energy & Mining International - Winter 2016 - 15
Energy & Mining International - Winter 2016 - 16
Energy & Mining International - Winter 2016 - 17
Energy & Mining International - Winter 2016 - 18
Energy & Mining International - Winter 2016 - 19
Energy & Mining International - Winter 2016 - 20
Energy & Mining International - Winter 2016 - 21
Energy & Mining International - Winter 2016 - 22
Energy & Mining International - Winter 2016 - 23
Energy & Mining International - Winter 2016 - 24
Energy & Mining International - Winter 2016 - 25
Energy & Mining International - Winter 2016 - 26
Energy & Mining International - Winter 2016 - 27
Energy & Mining International - Winter 2016 - 28
Energy & Mining International - Winter 2016 - 29
Energy & Mining International - Winter 2016 - 30
Energy & Mining International - Winter 2016 - 31
Energy & Mining International - Winter 2016 - 32
Energy & Mining International - Winter 2016 - 33
Energy & Mining International - Winter 2016 - 34
Energy & Mining International - Winter 2016 - 35
Energy & Mining International - Winter 2016 - 36
Energy & Mining International - Winter 2016 - 37
Energy & Mining International - Winter 2016 - 38
Energy & Mining International - Winter 2016 - 39
Energy & Mining International - Winter 2016 - 40
Energy & Mining International - Winter 2016 - 41
Energy & Mining International - Winter 2016 - 42
Energy & Mining International - Winter 2016 - 43
Energy & Mining International - Winter 2016 - 44
Energy & Mining International - Winter 2016 - 45
Energy & Mining International - Winter 2016 - 46
Energy & Mining International - Winter 2016 - 47
Energy & Mining International - Winter 2016 - 48
Energy & Mining International - Winter 2016 - 49
Energy & Mining International - Winter 2016 - 50
Energy & Mining International - Winter 2016 - 51
Energy & Mining International - Winter 2016 - 52
Energy & Mining International - Winter 2016 - 53
Energy & Mining International - Winter 2016 - 54
Energy & Mining International - Winter 2016 - 55
Energy & Mining International - Winter 2016 - 56
Energy & Mining International - Winter 2016 - 57
Energy & Mining International - Winter 2016 - 58
Energy & Mining International - Winter 2016 - 59
Energy & Mining International - Winter 2016 - 60
Energy & Mining International - Winter 2016 - 61
Energy & Mining International - Winter 2016 - 62
Energy & Mining International - Winter 2016 - 63
Energy & Mining International - Winter 2016 - 64
Energy & Mining International - Winter 2016 - 65
Energy & Mining International - Winter 2016 - 66
Energy & Mining International - Winter 2016 - 67
Energy & Mining International - Winter 2016 - 68
Energy & Mining International - Winter 2016 - 69
Energy & Mining International - Winter 2016 - 70
Energy & Mining International - Winter 2016 - 71
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Energy & Mining International - Winter 2016 - 73
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Energy & Mining International - Winter 2016 - 78
Energy & Mining International - Winter 2016 - 79
Energy & Mining International - Winter 2016 - 80
Energy & Mining International - Winter 2016 - Cover3
Energy & Mining International - Winter 2016 - Cover4
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue4
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue3
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue3ab
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue2
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue2b
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue2a
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue1
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue1a
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol16issue3
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol16issue2
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol16issue1
http://www.nxtbook.com/nxtbooks/knighthouse/emi_2017winter
http://www.nxtbook.com/nxtbooks/knighthouse/emi_2017summer
http://www.nxtbook.com/nxtbooks/knighthouse/emi_2017spring
http://www.nxtbook.com/nxtbooks/knighthouse/emi_2016fall
http://www.nxtbook.com/nxtbooks/phoenix/emi_2016spring
http://www.nxtbook.com/nxtbooks/phoenix/emi_2016winter
http://www.nxtbook.com/nxtbooks/phoenix/emi_2015fall
http://www.nxtbook.com/nxtbooks/phoenix/emi_2015summer
http://www.nxtbook.com/nxtbooks/phoenix/emi_2015spring
http://www.nxtbook.com/nxtbooks/phoenix/emi_2015winter
http://www.nxtbook.com/nxtbooks/phoenix/emi_2014fall
http://www.nxtbook.com/nxtbooks/phoenix/emi_2014summer_vol2
http://www.nxtbook.com/nxtbooks/phoenix/emi_2014summer
http://www.nxtbook.com/nxtbooks/phoenix/emi_2014spring
http://www.nxtbook.com/nxtbooks/phoenix/emi_2014winter
http://www.nxtbook.com/nxtbooks/phoenix/emi_2013fall
http://www.nxtbook.com/nxtbooks/phoenix/emi_2013_summer_vol2
http://www.nxtbook.com/nxtbooks/phoenix/emi_2013summer
http://www.nxtbook.com/nxtbooks/phoenix/emi_2013spring
http://www.nxtbook.com/nxtbooks/phoenix/emi_2013winter
http://www.nxtbook.com/nxtbooks/phoenix/emi_2012fallwinter
http://www.nxtbook.com/nxtbooks/phoenix/emi_2012fall
http://www.nxtbook.com/nxtbooks/phoenix/emi_2012summer
http://www.nxtbook.com/nxtbooks/phoenix/emi_2012spring
http://www.nxtbook.com/nxtbooks/phoenix/emi_2012winter
http://www.nxtbook.com/nxtbooks/phoenix/emi_2011fall
http://www.nxtbook.com/nxtbooks/businessmedia/emi_20110607
http://www.nxtbook.com/nxtbooks/businessmedia/emi_2011summer
http://www.nxtbook.com/nxtbooks/businessmedia/emi_2011spring
http://www.nxtbook.com/nxtbooks/businessmedia/emi_2011winter
http://www.nxtbook.com/nxtbooks/businessmedia/ep_2011winter
http://www.nxtbook.com/nxtbooks/businessmedia/ep_2010fall
http://www.nxtbook.com/nxtbooks/businessmedia/ep_2010summer
http://www.nxtbook.com/nxtbooks/businessmedia/ep_2010spring
http://www.nxtbook.com/nxtbooks/schofield/ep_2009winter
http://www.nxtbook.com/nxtbooks/schofield/ep_2009fall
http://www.nxtbookMEDIA.com