Brooks Brothers' Ap Team
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WEBINAR Presenters Sarah Fane Peter Gerardi Joe Hanousek Operational Accounting Head of Research Customer Experience sharedserviceslink Manager Brooks Brothers Manager Esker Questions • Send me your question early • Use this opportunity to get the answers/info you seek • The sooner you send me the question, the more likely it will be asked • Remember to stay on for Q&A in the last 10 minutes of the session Your copy of the slides The slides will be available after the webinar at www.sharespace.digital AgendaAgenda • Intro and Context • Poll question • Drivers for change at Brooks Brothers • Insight into the implementation • Results and lessons learned • About Esker AgendaContext Before automating, Brooks Brothers’ Accounts Payable process was about as manual as you can get. To improve their processes, Brooks Brothers implemented Esker’s automation software and SAP at the same time. Today we will explore how they • Dramatically improved visibility at the supplier service levels • Reduced manual data entry which was costly and inefficient • Eased month-end and year-end closing challenges • Improved invoice receipt to posting cycle time Learn how they modernized and digitized AP and how they have achieved FTE savings and how they have been able to expand with the business without adding headcount. Poll questions Where are you on your AP automation journey? • Looking to further automate AP in the next 12 months • Looking to further automate AP in the next 24 months • Looking to expand or improve our e-invoicing program • We are happy with our current levels of automation HOW BROOKS BROTHERS AUTOMATED AP TODAY’S SPEAKER PETE GERARDI Manager, Operational Accounting Brooks Brothers BROOKS BROTHERS COMPANY OVERVIEW AMERICA’S OLDEST CLOTHING RETAILER 1818 400 20 FOUNDED STORES IN COUNTRIES OPERATION WORLDWIDE EMEA • Owned (Europe; UK); Distributor (Greece) • $49M Est. Retail Sales* JAPAN / KOREA • 17 Stores (UK 5, Italy 6, • Joint Venture Greece 4, France 2) • $164M Est. Retail Sales* • Wholesale (incl. Italy, • 88 Stores (79 Japan, 9 Korea) Spain, Belgium) U.S. / CANADA • Wholesale • License • $19M Est. Retail Sales* • 26 airport stores; 1 resort store ASIA-PACIFIC • License MEXICO / LATIN AMERICA • $200M Est. Retail Sales* • License • 52 Stores (26 China, 8 Taiwan, • $12M Est. Retail Sales* 10 Hong Kong, 3 Malaysia, 4 • 11 Stores (7 Chile, 4 Mexico) Singapore, 1 Macau, 7 Australia) • Wholesale (Mexico) BROOKS BROTHERS MISSION STATEMENT: TO MAKE AND DEAL ONLY IN MERCHANDISE OF THE BEST QUALITY, TO SELL IT AT A FAIR PROFIT ONLY, AND TO DEAL ONLY WITH PEOPLE WHO SEEK AND ARE CAPABLE OF APPRECIATING SUCH MERCHANDISE. - HENRY SANDS BROOKS, 1818 BROOKS BROTHERS VISION STATEMENT: TO BE THE PREMIER GLOBAL LIFESTYLE DESTINATION FOR LADIES AND GENTLEMEN OF EVERY GENERATION. BROOKS BROTHERS’ AP TEAM: • Legacy ERP System: JDEdwards • 80,000 AP (Non-PO) Invoices Processed Per Year • Overheads, Samples, Expenses, Utilities, Etc. • Limited PO Invoice Volumes (Fixed Assets, Merchandise) • 90% Check Payments • 100% Manual Process • Data Entry • Barcode For Imaging/Archive • Paper-based Workflow • Reporting & Reconciliation SAP IMPLEMENTATION Brooks Brothers’ global strategy SAP selected to replace JDEdwards CapGemini — implementation partner in North America Driver for Change in AP Invoice Management • Utilizing the SAP investment to its fullest • Desire for a workflow system and no more manual entry AP INVOICE PROCESSING BEFORE ESKER MANUAL COSTLY NO VISIBILITY DRIVERS FOR CHANGE AP INVOICE MANAGEMENT HIGH COST & MONTH/YEAR LENGTHY CYCLE POSTAL MAIL ZERO VISIBILITY INEFFICIENCY OF END CLOSING TIMES WORKFLOW DATA ENTRY CHALLENGES VENDOR SELECTION • CapGemini proposed ReadSoft or OpenText • Needed a vendor that fit resource requirements from IT • SAP workflow • CapGemini quoted 800 hours for workflow set up • Research uncovers Esker on Demand • Esker evaluation process • Solution demonstration • Contracts negotiated and signed in April • Esker conditional agreement with C-Level Execs, based on solution provisioning IMPLEMENTATION MAY 7TH MAY 20TH OCTOBER 6TH PROJECT INCREMENTAL GO-LIVE KICK OFF PLANNING WORKSHOP PROCESS FLOW MAPPING • Vertex (tax system) • Departments (Buckets) to categorize invoices • Design Workflow • “Why do invoices need to come back to Finance?” BROOKS BROTHERS AP WORKFLOW TRADITIONAL EOD WORKFLOW: 1 2 3 4 5 Approval AP Review & Invoice Arrives Coded by AP SAP workflow Post BROOKS BROTHERS AP WORKFLOW MODIFIED WORKFLOW: 1 2 3 4 Approval Invoice goes to Coded by Dept. workflow & SAP correct dept. Admin Post BENEFITS OF AUTOMATING AP WITH ESKER: GROWTH COST INCREASED WITHOUT SAVINGS VISIBILITY GROWING IMPROVED REFINED VENDOR EFFICIENCY RELATIONS “CRADLE TO GRAVE” AUTOMATION TOUCHLESS AP INVOICE PROCESSING EMAIL RECEIPT for taught vendors OCR & Data Checks AUTO-ROUTE to validator and/or department head ESTIMATED THAT ONE CLICK TO APPROVE (pulls in GL/Cost Center) 20% AUTO-ROUTE to approver – one click to approve OF ALL INVOICES ARE HANDLED THIS WAY SAP DUE DATE & POSTING TODAY 100% manual prior to Esker LESSONS LEARNED Teach more vendors pre-Go-Live Increase in training Buy-in from department heads upfront • Change Management Possibly modify approver process flow based on General Ledger (as opposed to by vendor) Ease of programming surprise and reporting power NEXT STEPS INVOICE SAP HR INCREASE EXTEND TO CONSOLIDATION IMAGING PO NUMBERS JAPAN VIA ECOVA 48% of all enterprises state that improving AP reporting/data analytics is a top priority. - Ardent - The State of ePayables 2019 Three-Year Forecast: Demand For Real-Time Visibility 17% Significantly Higher Up Almost 4x 56% 46% Higher Up From 63% to 84% Share of AP Practices AP Share of 28% 37% 17% 2018 2020 Unchanged Slightly higher Significantly higher - IOFM Future of Accounts Payable 2018/2020 DASHBOARDS FOR VISIBILITY Specialist Manager CFO QUESTIONS? THANK YOU! APPENDIX Highlights From Our History 1818 – THE FIRST STORE 1850 – THE GOLDEN 1865 – ABRAHAM LINCOLN'S FLEECE COAT On April 7, 1818, at the age of 45, Henry The Golden Fleece At his inauguration, President Sands Brooks symbol was adopted Lincoln wore a Brooks Brothers opened H. & D.H. as the company's coat that included an intricate, Brooks & Co. on the trademark. A sheep hand-stitched lining design Northeast corner of suspended in a ribbon featuring an eagle and the Catherine and Cherry had long been a inscription, “One Country, Streets in New York symbol of British One Destiny.” Sadly, this was City woolen merchants. also this coat he was wearing when he was assassinated at Ford’s Theater. 1800 1900 2000 1896 – THE BUTTON-DOWN 1860 – MAKERS & POLO SHIRT MERCHANTS 1845 – READY- John Brooks, grandson of the MADE SUITS From the company’s founder, made fashion history by founding, Brooks Brothers introducing the button-down polo Brooks Brothers distinguished itself through collar shirt. His design inspiration introduced the first the excellent workmanship came after attending an English ready-to-wear suits in found in both its custom polo match where he observed America. Pioneers of and ready-made clothing. the players' shirts secured with the 1849 California Being both "Makers and buttons to keep them from Gold Rush, unable to Merchants" gave Brooks flapping in the wind. The shirt wait on the whims of a Brothers absolute control became an instant success and tailor, flocked to over its offerings, and soon one of the best-selling Brooks Brothers to ensured its customers of Brooks Brothers items. pick up ready-made the highest quality apparel. clothing Highlights From Our History 1991 – FACTORY 1915 – 346 1949 – WOMEN’S STORES MADISON Brooks Brothers devoted In 1991, Brooks Brooks Brothers a small corner of the Brothers opened its relocated to its present store to a women’s first factory outlet flagship store at 346 department. Vogue store in Kittery, Madison Avenue. Not Magazine featured the Maine. These stores coincidentally, this pink button-down shirt, have allowed the neighborhood had creating an overnight company to sell recently become the fashion sensation. overruns and excess preferred location for The company full piece goods and New York’s most launched its women’s also to reach new prominent social department in 1976. customers organizations. 1800 1900 2000 1998 – E-COMMERCE Brooks Brothers leveraged its catalog into what has become an ever-growing 1920-30 – THE REPP TIE; MADRAS; SEERSUCKER E-Commerce business. Brooks Brothers established a number of trends in the 1920s. These 1979 – JAPAN included (1) the diagonal repp tie, which was Americanized by Like many things reversing the direction of the stripes; (2) Indian madras to the United quintessentially States, with offerings in jackets, trousers, and beachwear; (3) American, Brooks Seersucker, which was introduced to America by Brooks Brothers. Brothers was well received in Japan. The original flagship store in Aoyama opened in 1979, spreading classic American style across continents. Highlights From Our History 2003 – COUNTRY CLUB A tightly focused line of clothing is designed for easy movement from the course to the clubhouse and on to the dining room. This line was further enhanced in 2008 with the launch of the ProSport, a line of high-performance garments featuring innovative fabrics. 1800 1900 2000 2007 – BLACK FLEECE The Black Fleece collection, designed by Thom Browne, is a more fashion-forward take on classic Brooks Brothers fashions and emphasizes high-quality materials and the strictest attention to detail. BRAND DNA OUR BRAND PURPOSE IS TO