Mobilization at the ramp

Transcription

1 WELCOME

2 Mobilization at the ramp Data capture for both billing and service level compliance Peter Ball, Business Development Manager, Zafire Chris Beling, Director, Zafire Bruno Roussel, Manager, FINEX Governance and Standards, IATA Dimitrios Sanos, Product Manager Airport & Ground Operations Training, IATA 2

3 Networking Break 15:00 15:30 3

4 e-invoicing Facilitators Karuppuchamy Marimuthu Manager, Revenue Reporting, Etihad Cedric Chretien Assistant Director, IATA Clearing House Operations, IATA Bruno Roussel Manager, FINEX Governance and Standards, IATA Florian Hoser Director of Accounts Payable, Lufthansa 4

5 Agenda Florian Hoser Lufthansa Director of Account Payable E-Invoicing in Lufthansa Bruno Roussel IATA Mobilisation and e-invoicing standards manager Finex initiative and the industry Mobilisation Karuppuchamy Marimuthu Etihad Electronic invoicing and settlement Chretien Cedric IATA Head of Clearing House Operations ICH Predictive and secure settlement 5

6 Florian Hoser Director Accounts Payable Electronic Invoicing at Lufthansa Kuala Lumpur, April 29, 2014

7 Agenda Purchase2Pay at Lufthansa E-invoicing Strategy Focus: The aspect of time in E-invoicing Why now? DXB GV Conference September IGHC in Kuala Lumpur, April 2014

8 P2P Process Chain at Lufthansa content verification approval posting validation Spend Category Procurement Document Receipt Document Processing Payment Automization rate Fuel HAM MT Fuel Plus HIGH Ground & Air FRA LR/I OB10 AVIS Payment Run: IIAQ/Manual Services SIS *wet LOW ATC FRA LR/S EDI *dry ARTUS P-Card Manual HIGH pdf P-Card: Catering paper inv. SkyScope Credit Card HIGH Others* buy:order, MM Maverick AWARD Others MIXED Global maintenance of suppliers in 123 countries Handling of incoming invoices with 2,3 Mio. vouchers in SAP *includes: Indirect Materials, Real Estate Mgmt., Travel Mgmt., Inflight, IT, **further spend categories: Technics, Aircraft Purchase, Logistics 8 IGHC in Kuala Lumpur, April 2014

9 Lufthansa's electronic invoicing effort targets three groups of invoice issuers Intra-group After rolling-out e-invoicing (on xml basis) to the major internal service providers on mutual and voluntary basis, the next step will be to establish einvoicing as a mandatory standard between group companies The automation level of processing these invoices (verification, posting and reconciliation) is being increased gradually IATA-SIS between Airlines established and completed in 2013 one standard, reconciliation and settlement via ICH External Suppliers Airplus Purchase-Card and OB10 are preferred e-invoicing solutions at Lufthansa for non-strategic suppliers, pdf to be added in 2014 Significant reduction of paper invoices by addressing invoice format topics early on in negotiations, tenders and on our LH-group web-page for suppliers Strategic suppliers 9 IGHC in Kuala Lumpur, April 2014

10 Strategic Suppliers: Ground Handlers lagging behind in e-invoicing rate Fuel EDI/XML rate at around 93% for Lufthansa Passage and 91% group-wide high automation rate for invoice verification and posting thru FuelPlus Industry Standard has been widely established Air Traffic Control E-invoicing Rate > 90% of total invoice volume IATA provides industry standard via E&F Catering Interface with LSG Sky Chefs via Skyscope Ordering and reconciliation via one integrated system Ground Handling / Airports bilateral interfaces with main German Handling Providers BUT: paper in all shapes, formats and types remains the 'non-standard' 10 IGHC in Kuala Lumpur, April 2014

11 Paper invoices create inefficiencies in receiving and processing All paper invoices have to be received somewhere, forwarded internally and then digitalized in order to start working on them A lot of time and work effort is wasted on non-productive activities Reading hundreds of different formats of invoices with differing language, terminology, lay-out requires extensive training and is prone for errors In order to ensure somewhat timely payments no standard process is possible, in some cases the invoices are already due by the time when they first hit the service center 11 IGHC in Kuala Lumpur, April 2014

12 Invoice verification bases on matching the actual invoice data with our own simulation Operational flight data Teflos Obelisk LH data base Invoice Actual Value Invoice Match / No Match Simulation Value CHAMP Contract prices + quantities 12 IGHC in Kuala Lumpur, April 2014

13 Paper invoices take numerous time-consuming and value-lacking steps from issuance to final posting Supplier Up to 7 Days Paper Invoice Lufthansa Office Lufthansa Scan Location 3 Days 3 Days Service Center Finance Team 3 Days Match / No Match Service Center Invoice Check Team 5 Days Reconciliation Posting Ready for payment Around 20 days 13 IGHC in Kuala Lumpur, April 2014

14 Standardized E-invoicing fosters Automization and Time-saving Potential Clarification Correction Supplier XML IATA E-Invoicing Platform Daily Lufthansa SAP Upload Automatic Reconciliation Match Automatic Posting Ready for payment 1 Day 3 Days 14 IGHC in Kuala Lumpur, April 2014

15 Electronic Invoicing the moment has come for a comprehensive and coordinated effort to move forward Within the Lufthansa Group Lufthansa Group companies are consolidating their Financial Accounting and Invoice Verification in a Global Business Services unit in order to standardize and streamline processes Lufthansa Passage, Lufthansa Cargo, Swiss International, Austrian Airlines and Germanwings are customers of this internal GBS provider Lufthansa Service Companies like Lufthansa Technik and LSG Sky Chefs have joined as well Between Accounting and Procurement Within the airline community The completion of on-boarding all IATA airlines to a standardized e-invoicing platform (SIS) has been successful and all participants profit from this. Between Airlines and their strategic Suppliers Advantages are many-fold and shared between both sides of the supply chain 15 IGHC in Kuala Lumpur, April 2014

16 Questions? 16 IGHC in Kuala Lumpur, April 2014

17 Industry Mobilization Connect once, connect to all Bruno Roussel Manager, Financial Exchange Mobilization and Standards, IATA 17

18 Agenda e-invoicing as your solution e-invoicing standard Mobilization Initiative Next Steps 18

19 Currently, are you sending large complicated invoices with lots of details? 19

20 Pain points you could be facing today The invoice itself Different formats per airline, per invoice type and per country Request for supporting information may vary depending on the customer and even within the same customer depending on the location The invoice itself Suppliers have to go to various airline websites to submit invoices by manually entering data Eg. Catering companies are asked by airlines to enter invoices directly through airline websites 20

21 Possible Consequences Long and tedious processing Reconciliation and approval take time, which could delay payment Human factor Misrouted invoices have to be reissued On time payment can be a challenge 21

22 Airlines also recognize these issues and are looking for solutions Issues with missing invoices failure to meet due dates Incidents in which invoice are paid multiple times Suppliers don t provide enough supporting information

23 Solution: e-invoicing Standardization and Simplification of the invoicing process Electronic invoicing is the exchange of the invoice document between a supplier and a buyer in an integrated electronic format. An electronic invoice is a structured invoice data issued in EDI or XML format. PDF invoices are then created and digitally signed as required by members 23

24 IATA is proposing a joint e-invoicing solution for the airline industry The Mobilization Initiative Aims to expand the electronic usage to include airlines direct operating cost suppliers Created by the airlines industry to address the specific needs of the airlines industry One single format for all the IS-XML IATA industry standard (Part of AHM 2014) Connect once connect to all concept 24

25 The Mobilization Task Force The initiative is well underway as the mobilization task force (a group of first mover airlines) leads the efforts Airlines Task Force members, representing the entire carriers community Aegan Air India British Airways KLM Qatar TAP Aer Lingus Air Malta Egyptair Lufthansa Ryanair Ukraine International Air Calin Air Niugini Emirates MEA S7 Airlines Virgin Atlantic Air Canada Asky Etihad PIA Swiss Vueling Air France Avianca Kenya Airways Porter Airlines SATA 25

26 Benefits of joining the initiative Join the initiative and reduce your cost using the platform Receive adoption support from IATA divisions and regions Benefit from technical assistance Propose changes to the platform and suggest IS-XML standard update Invite other airline or any other parties to join 26

27 Benefits to aviation industry suppliers Access to 370+ airlines. More business jets, charter and low cost carriers to join. Aviation industry suppliers show strong interest in a single solution to connect to most of their customers Reduce cost by becoming paperless No postage/delivery costs No paper archiving cost Improve productivity by reducing manual work No missing data and fewer or no rejections by the recipient Faster settlement and better cash flow Reduced processing time of high quality data invoice

28 Next Steps Consider joining the platform and evaluate IT and process impact You will benefit from a free dedicated assistance and technical support You can propose changes to the platform Suggest IS-XML standard update Invite other airlines or any other parties to join 28

29 Getting started with your active participation Visit the IATA Financial Exchange website for more details guidelines on how to join the IATA Financial Exchange Arrange a call with IATA to further discuss Your position Your priority airlines how IATA can help you achieve your goals Join our Mobilization meeting in May (provide me with your business card) 29

30 Questions? IATA Financial Exchange Click Here to download the Complete Member List 30

31 Electronic Invoicing IGHC Apr-14 Prepared by: Karuppuchamy EY Confidential KARUPPUCHAMY MARIMUTHU MANAGER REVENUE - FINANCE 31

32 COST CYCLE Contract & rate register Maintained and Monitored in the system Usage Data Capture System driven data capture for Operational usages C O S T Accruals / Provisions Invoice Receiving System driven accruals for Operating Cost Registering the invoices manually Invoice Validation Centralized, automated Validation with 2% tolerance level Invoice Payment Centralized, Automated payments Prepared by: Karuppuchamy EY Confidential 32

33 INVOICE PROCESSING Receive Invoice Register Invoice Validate & Process Invoice Pay Invoice 85 % Invoice by Mails 5 % Self Billing Catering, AUH Airport taxes, AUH Ground services Indirect Cost: In ERP, Accounts Payable module Indirect Cost THREE WAY MATCHING (Invoice / Receipt /PO) Choose payment location and bank Run batch payments 5 % Electronic invoice Euro Control XML Direct Operating Cost: In the Cost Accounting System Direct Operating Cost: Auto Validation 2 % tolerance with Accruals Prepared by: Karuppuchamy EY Confidential 33

34 WHAT DO WE NEED FOR PAPERLESS PROCESS One Industry Standard for all Ground Handlers to bill the airlines Detailed information should be exchanged in a structured format Standard should be readable by people and systems easily Workflow process to accept or reject the invoices as soon as billed One solution to benefit both airlines and Ground handlers Ability to have flexible settlement methods ( ICH, BSP & Bilateral) Streamline reception process and reduce industry costs in AP / AR ( Billing) Prepared by: Karuppuchamy EY Confidential 34

35 IATA GO GREEN SOLUTION ( SIS & ICH ) IS- XML Global standard simplifies process for all. Paperless leads to reduction in messaging costs for both the parties. Lower software development and maintenance costs. Standard Full integration with ERP and Financial Systems Single migration to access all airlines and Suppliers Creates a community of airline industry suppliers Prepared by: Karuppuchamy EY Confidential 35

36 COMMON BENEFITS OF SIS & ICH Financial Reconciliations is simplified ( One Payment & One Receipt ). Reduction of Banking Fees (One transfer instead of Many). Currency and Cash Flow Optimization. Manual interventions are limited only to exceptions Auto validation and matching of invoices in payment process. No payment to be initiated in case of Clearing House. Prepared by: Karuppuchamy EY Confidential 36

37 Thank You Prepared by: Karuppuchamy EY Confidential 37

38 Integrated Settlement ICH & SIS Your Solution to more cost effective billing and settlement 100% on-time settlement! October 2010

39 Integrated Settlement ICH & SIS What it is? Part of the suite of products offered under the Financial Exchange Fin-Ex initiative Combination of the new industry e-invoicing platform SIS with the IATA Clearing House ICH settlement system What we do? Enable our 400+ participants (Airlines & Suppliers) to: Improve their financial efficiency by providing fast and secure settlement services Streamline processes between buyer and supplier, Automate posting and reconciliation 39

40 Integrated Settlement ICH & SIS How? Offset claims by/against participants Airlines to Airlines Suppliers to Airlines Suppliers to Suppliers Reduce bank charges (one single position each period) Perform the collection (no more chasers) Monitor risk (worldwide presence) Bring additional protection in case of: default, bankruptcy, cessation of operations Cash Deposits (Security & Voluntary) Right for set-off Deal with the Courts & Administrators, file claims on behalf of members Employ own lawyer (save administrative efforts & legal costs) 40

41 Benefits from joining Integrated Settlement IS One electronic invoicing platform One XML industry standard for invoicing all your partners Structured rejection process with time line Traceability of invoice Fully paperless process One settlement platform ICH (IATA Clearing House) Predictable: Payments are made according to strict calendar & within 21 days Secure: Protection in case of Default, Bankruptcy, Cessation of Operations Reliable: Managing members funds since over 65 years Efficient: Settlement Success Rate in 2013 for GSP s 100% 41

42 Some of our current suppliers using IS 42

43 To represent, lead & serve the Air Transport Industry Interested in joining our community, contact/visit us: Mr. Cédric Chrétien, Head of Clearing House Operations Mr. Bruno Roussel, Manager FINEX Mobilisation and Standards 43