1. How to Find Your Real Project ROI Session 5

2. Slide 2 ©2010 Financial Operations Networks LLC About the Speaker Wendy is the Accounts Payable Manager and Purchasing Card Administrator for Moen Incorporated. In her current position, which she has held for 19 years, Wendy oversees the payment of more than 80,000 invoices annually, totaling more than $550m! During her 35 years at Moen she has held a variety of positions including customer service and cost accounting. She was on the SAP implementation team in 2000 and continues as a SAP power user. She also led the effort that successfully consolidated Accounts Payable in 2004. Wendy holds a degree in Accounting and is certified as an Accredited Payables Manager. Wendy Cambarare, APM Accounts Payable Manager Moen Incorporated

3. Slide 3 ©2010 Financial Operations Networks LLC An Accounts Payable Story: Moen & OnBase Wendy Cambarare Accounts Payable Manager, Moen Incorporated Rachel Gilmore Marketing Program Manager, Hyland Software

4. Slide 4 ©2010 Financial Operations Networks LLC About OnBase Hyland Software: Software technology firm established in 1991 Privately-held 850+ Employees OnBase Enterprise Content Management (ECM) solution More than 9,000 customers

5. Slide 5 ©2010 Financial Operations Networks LLC About Moen Manufacturer of faucets, sinks and accessories for the bath, kitchen, outdoor and more Headquarters in Cleveland, Ohio Products are sold internationally Moen Incorporated

6. Slide 6 ©2010 Financial Operations Networks LLC Moen Brands

7. Slide 7 ©2010 Financial Operations Networks LLC Moen and a Document Management Solution Driven by I.T. in 2003 –Using Documentum for Customer Service Documentum was purchased and our implementation team had been terminated Required dedicated in-house support In order to acquire additional functionality, it would require a significant additional capital investment

8. Slide 8 ©2010 Financial Operations Networks LLC Moen and a Document Management Solution (Cont’d.) Other scanning software ―Only SAP compatible I.T. wanted ability to interface with systems outside of SAP ―Based on legacy technology – no open system interface More expensive than Documentum

9. Slide 9 ©2010 Financial Operations Networks LLC Why Accounts Payable? Document management solution project manager was the Director of Financial, HR & Business Reporting. Business initiative was to consolidate A/P functions from 3 locations to 1. Collaboration between project manager and Corporate Controller brought about Moen’s decision to make A/P the OnBase guinea pig.

10. Slide 10 ©2010 Financial Operations Networks LLC Why OnBase? Simple integration with Microsoft products Technology & approach to support applications more user friendly SAP screens tie to OnBase for ease of search ―Continually enhancing ―WEB-based access ―Imaging not a Moen competency ―Instead of $5K SAP licenses for each user, 6 licenses for imaging and indexing and a concurrent license that supports 1,000 users

11. Slide 11 ©2010 Financial Operations Networks LLC Business Case for Solution 350 problem invoices/month – rework cost $15 (per A/P Institute) Lost discounts – $1,600/month Retrieval & filing – 12 hours/month x 6 associates Inability to process invoices from other facilities/countries without receipt of paper copies Average process time per invoice 7 minutes @ cost of $1.90/invoice

12. Slide 12 ©2010 Financial Operations Networks LLC IT’S ALWAYS YOUR FAULT!

13. Slide 13 ©2010 Financial Operations Networks LLC Potential Monthly Savings ―$8,020 per month Return On Investment (ROI) ―Cost of capital/potential monthly savings 14.5 months At 80% of productivity – 18 months

14. Slide 14 ©2010 Financial Operations Networks LLC Before OnBase

15. Slide 15 ©2010 Financial Operations Networks LLC Moen’s Accounts Payable Department Processing approximately 82K invoices/year 8 associates 3 locations – 1 in Ohio and 2 in North Carolina Invoices distributed by the last 2 digits of the purchase order number Piles of invoices – hope the supplier doesn’t call Keyed, stamped and filed

16. Slide 16 ©2010 Financial Operations Networks LLC Problem Invoices Make a copy & attach to the brightest paper we could find Send out for resolution Attempted tracking using Excel Average return time 20 days

17. Slide 17 ©2010 Financial Operations Networks LLC Implementation December 2003 – Hyland consultant @ Moen ―Initially had resistance from A/P associates – concern about not taking their needs into account & difficulty of use Headquarter’s A/P staff spent ½ day with consultant outlining current practices & future wants January 2004 – Proposed plan ―Reviewed proposed implementation plan and presented documentation to A/P March 2004 – Roll out ―Sent out documentation to users outside of A/P in advance End users concern – retrieval of information ― Consultant stayed with A/P on first day

18. Slide 18 ©2010 Financial Operations Networks LLC Integration Scanning format ―Created multiple scan queues & queues within those queues Standard Invoices –Standard –Foreign –ACH –Check Request –Utilities Back Files Vendor Master Adds & changes Journal Vouchers Wires – payment documentation ―All rolls into one scan queue for document retrieval

19. Slide 19 ©2010 Financial Operations Networks LLC Integration (Cont’d.)

20. Slide 20 ©2010 Financial Operations Networks LLC Determine what fields you want to have as search options - keywords Scanning opportunities ―Within the scanning queues, configuration allows equitable distribution of workload Queues can be distributed based on percentage or specific queue can be directed to one associate or multiple associates ―Manager or other designated personnel can view what is in each queue @ any time and workload can be redistributed as needed as well as a history of each specific document ―Invoice backlog can be determined immediately Integration (Cont’d.)

21. Slide 21 ©2010 Financial Operations Networks LLC Integration (Cont’d.)

22. Slide 22 ©2010 Financial Operations Networks LLC Automated indexing ―SAP input copied directly into OnBase Eliminates duplicate data entry Dual screens Created dollar value double-check SAP/OnBase ―Allows users outside of A/P to access the document image through the web directly from the vendor history screen in SAP without going to an OnBase link Integration (Cont’d.)

23. Slide 23 ©2010 Financial Operations Networks LLC Integration (Cont’d.)

24. Slide 24 ©2010 Financial Operations Networks LLC Workflow ―Created E-form to replicate paper resolution form Requires partial indexing to locate document prior to processing Addresses based on email address within the company –Any location with a moen.com extension Expiration date reminders Allows for notes from A/P and also from the recipient Excellent tracking mechanism & controls –Why isn’t it processed? –Where is it? –Who has it? –How long has it been there? Integration (Cont’d.)

25. Slide 25 ©2010 Financial Operations Networks LLC Integration (Cont’d.)

26. Slide 26 ©2010 Financial Operations Networks LLC Results Process improvements ―Reduced average month-end backlog from 1,400 invoices in 2003 to 175 currently ―Time savings – no digging & no filing! ―Paper documents are destroyed after 3 weeks

27. Slide 27 ©2010 Financial Operations Networks LLC Canada and Mexico facilities have implemented OnBase ―Their data is uploaded nightly to our server ―The invoices for Moen Mexico are directed to queues @ Moen HQ and are processed Visibility ―300+ users access through SAP or web ―Problems are partially indexed Results (Cont’d.)

28. Slide 28 ©2010 Financial Operations Networks LLC Departments That Use OnBase Accounts Payable Accounts Receivable Human Resources Payroll Customer Service Consumer Services Transportation Distribution Centers

29. Slide 29 ©2010 Financial Operations Networks LLC 2010 and beyond Upgrade to most current OnBase version Integration of emailed invoices directly to OnBase with a dedicated server

30. Slide 30 ©2010 Financial Operations Networks LLC Questions If you have further questions, please e-mail them to wvail@TheAPNetwork.com To ask a question, please press *1 on your phone or submit your question using the chat function within the Webinar interface.

31. Thank You! The Accounts Payable Network 2100 RiverEdge Parkway, Suite 380 Atlanta, GA 30328 Contact: MemberCare@TAPN.com 866-827-6389 770-984-1184 www.TAPN.com For further information on this topic, contact