PRSM 2012 Best Practices - (Page 99)

ESTABLiShiNg AN ENd TO ENd PrOCurE-TO-PAy PrOCESS AUTHOR Ali Johnson, senior Manager COMPANY gap inc. chAllenge: Gap Inc. store maintenance needed to streamline the labor intensity of its procure-to-pay systems, reducing the amount of human interaction related to invoice management. best PrActice: By leveraging the work order management system and the back-of-house accounting infrastructure (Oracle), Gap Inc. has designed an invoice management system requiring human interaction only on an exception basis. This process allowed Gap Inc. store maintenance to leverage technology to streamline the labor intensity of prior procureto-pay systems. Outlined below are the process steps that make this possible: 1. Work orders are opened for individual service events by location: • The unique work order number is also accepted in Oracle as the unique purchase order number. • Not only does this dual purpose numbering enable cost-per-location tracking but it also auto codes and routes spend to store level P&Ls. 2. Preset guidelines for spend by trade cap the purchase order liability and can only be overridden by a specified value proposal. 3. Specified value proposals must be approved by business partners with pre-approved spend limitations by grade level to ensure big ticket cost control. 4. Gap Inc. internal audit allows IVR to be accepted as proof of service but the call-in must be made from the store phone number. 5. Upon completion, each work order automatically converts to an Oracle purchase order. • The CMMS sweeps all completed work orders nightly and does a mass enablement upload to convert the completed work order number to an active Oracle purchase order. • From work order completion to active purchase order is 48 hours maximum. 6. Once the purchase orders are active, the function allowing vendors to submit invoices via the CMMS attachment is disabled. Instead invoices are auto-generated through the CMMS based on vendor confirmation of billable value. 7. A valid invoice must be equal to or less than the trade limit or match the specified proposal value for that work order. a. U.S. vendor payments are scheduled for electronic wire transfer according to the negotiated pay cycle in the vendor’s Oracle profile (quick pay discounting is allowed). b. International vendors get paid via mailed paper checks. results: Using this procure-to-pay model, Gap Inc. has been able to reduce monthly aging from an average of $3M - $10K per month across 150,000 invoices a year. The productivity improvement in this model not only saves day-to-day operating costs between the vendor’s receivables and the retailer’s payable terms but also reduces accrual liability by minimizing aging invoice floats in the monthly forecast process. VeriFicAtion oF eFFiciency And sAVings cAPtured: Gap Inc. is saving headcount and vendors are delighted with the efficient payment process. A true WIN-WIN! 2012 Best Practices | 99

Table of Contents for the Digital Edition of PRSM 2012 Best Practices

Conducting Multi-Site Paving Improvements to Ensure Continuity
Conducting Multi-Site Paving Improvements to Ensure Continuity
Exterior Rebranding
Exterior Rebranding
Getting the Most Value Out of Roof Management
Getting the Most Value Out of Roof Management
Pervious Concrete Pavement Solves Drainage Challenge
Pervious Concrete Pavement Solves Drainage Challenge
Pervious Pavement: Concrete Solutions to Driveway Stormwater Drainage and Sustainability Problems
Pervious Pavement: Concrete Solutions to Driveway Stormwater Drainage and Sustainability Problems
Applying Bipolar Ionization to Improve Indoor Air Quality and Save Energy
Determining Responsibility for Ceiling Leaks
HVAC Maintenance and Repairs Quote Review
Managing HVAC Energy Usage Without Installing an Energy Management System
Solving HVAC Issues on Landlord Operated Systems
Creating a Standardized Cleaning Chemical Program
Floor Replacement Planning and Execution
Improving Pest Control Monitoring to Maintain Store Cleanliness
Streamlining Store Cleaning Through Internal Benchmarking
LED Conversion Bolsters Ambiance, Bottom Line and Environment.
LED Gas Canopy Lighting Upgrade
Lighting Maintenance
Retrofitting Signage with LED Technology
Performing Basic Troubleshooting to Save Money
Implementing Repair Audits to Ensure Customer Safety
Improving Quality, Cost and Schedule Through Safety Education
Managing Extended Power Outages Through Emergency Response
Managing Risk Through Slip Resistance Testing
Creating Energy Teams to Pursue Opportunities
Formulating Green Solutions
Making Data Centers LEED Compliant
Outfitting Facilities with an Eye on ENERGY STAR Certification
Recycling Cooling Water From Air Conditioning Systems for Toilet and Landscaping Use
Sustainability-How the Facilities Team Can Contribute
Driving Down Waste Expense
Reducing Trash and Recycling Expense for Retail Locations
Transferring Compactor Maintenance to a Service Vendor
Waste Service Efficiency and Compliance
Waste Evaluation and Right Sizing to Reduce Cost
Asset and Service Warranty Tracking and Management: More Fully Realizing the Value of Budget Expenditures
Conducting an Organized Meeting
Proactive Maintenance Scheduling and Delivery
Repair Reductions by Participating in Design and Construction Table
Streamlining the Store Closing Process
Achieving Process Improvement Through Onsite Assessment of KPIs
Forecasting a Maintenance and Repair Budget
How to Calculate Return on Investment
Tracking Finances for Facilities
Centralizing Vendor Training and Management
Creating a Service Vendor Call Center to Save End Users’ Money
Answering a Call Status Challenge with an IVR Solution
Communicating Product Recalls Using a CMMS-Inspired Module
Doing More with Less and Saving Money in the Process
Ensuring the Accuracy of Web-Based Maintenance Requests
Establishing an End to End Procure-to-Pay Process
Leveraging Existing Technologies to Provide Updated Process Improvements
Quality Management of Bundled Periodic Services
Reduced Dashboard Time at Supply Houses
Parking Lot Management
Creating Best-In-Class Snow and Ice Management White Paper
Energy Savings/HVAC Air Filter Bypass
Managing a Retail Lighting Retrofit Project – Bright Ways to Improve Your Lighting and Your Bottom Line!
Managing Energy Usage with Interval Meter Calibration
Navigating the Department of Energy’s Higher Efficiency Regulations
Supplier Insights into Competitive Sourcing White Paper
Testing HVAC System Options to Reduce Costs and Labor
Understanding Retail Facilities Sourcing White Paper
Glossary of Acronyms and Terms

PRSM 2012 Best Practices