SAP Financial Supply Chain

Management (FSCM) Seminar

Implementation Case Study
June 15th, 2011

Enabling World Class Deduction Excellence

Agenda

The Hershey Company

Project goals
Implementation Timeline
Deduction Process Flow / Key Screens
Reporting
Lessons Learned
Comments from users
Questions
Enabling World Class Deduction Excellence

The Hershey Company

Global Manufacturer of Candy, Gum and
Mints

More than $5 billion in annual sales with

more than 80 iconic brands
Approx. 13,000 employees

Enabling World Class Deduction Excellence

Hershey around the world

Offices
Manufacturing

Enabling World Class Deduction Excellence

Category-defining iconic brands

Enabling World Class Deduction Excellence

Cant we all just get along?

Enabling World Class Deduction Excellence

Enabling World Class Deduction Excellence

Goals
We set out to
Replace the existing mainframe Deduction Management
System (DMS) with SAP's Dispute Management system
(DM) for the US, Canada and Puerto Rico

While
Maintaining best in class deduction management and
collections position

Enabling World Class Deduction Excellence

We decided to also
Install HighRadius software and their Web
Aggregation process to provide efficiencies to
Customer Accounting Service department

Move from Filenet to OpenText imaging,

including converting stored images from an
antiquated jukebox to up-to-date disk storage
Upgrade iXos software to the current OpenText
release

Enabling World Class Deduction Excellence

The Vendors

Licenses SAP Financial Supply Chain Management Dispute

Management and the ArchiveServer products
Develop and Deploy new functionality via Enhancement Packs and
fixes via Support Packs and OSS Notes
Quality Assurance
Licenses SAP FSCM bolt on software: Dispute Management
Accelerator / Debit Credit Matching Engine / Bulk Correspondence
Engine / Web Aggregation services (Receivables Radius)
Consulting support for design and implementation of FSCM-DM and
bolt on applications
Consulting support for validation of 5.0a to 9.71 upgrade and
validation of technical landscape
Design and execution of FileNet to ArchiveServer 9.71 migration
Spot consulting services for document imaging integration to SAP
functionality

Consulting services for interfaces and forms technical development

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Implementation timelinein the beginning

2010

2009

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Imaging

Dispute
Management

ArchiveServer
5.0a => 9.71

Document and
Assess Process

Blueprint

Jul

FileNet
Conversion

Realization

Deploy Stabilize

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Implementation Timelinein the end

2009
Q3

Imaging

Dispute
Management

2010
Q4

Q1

ArchiveServer
5.0a => 9.71

Document and
Assess
Process

Blueprint

Q2

2011
Q3

Q4

Q1

Q2

FileNet Conversion

Realization

Enabling World Class Deduction Excellence

Deploy Stabilize

12

Why so different?
Under estimated size and complexity of project
FSCM-DM +DRA + HDC + HCO + RR + Open Text
Hershey + 4 vendors => resource management
complexity
Customization / enhancements

Ran concurrent with a major project which

overlapped the dispute area => internal resource
availability issues
Project resource turnover internal and external

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Dispute Processing Flow

Deduction
Analyst
creates prededucts for
anticipated
deductions

Cash Applier
applies cash

Residual
becomes
dispute with
images
attached

Cash Applier
assigns
reason code
to dispute

Route disptue
to appropriate
Deduction
Analyst

Offset disputes
and existing
credits

Correspondence
generated to
customer

SYS

SYS

SYS
SYS

Manually
scan and
index images

Harvest POD &

claim images
from carrier and
customer
websites

Download and
index lockbox
images

Deduction
Analyst
researches
dispute

Dispute offset
with repayment
or credit

Deduction
Analyst
dispositions
dispute

SYS

Dispute cleared
to G/L

SYS
SYS

SYS

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Preparing for deductions

Deduction
Analyst
creates prededucts for
anticipated
deductions

Cash Applier
applies cash

Residual
becomes
dispute with
images
attached
SYS

Manually
scan and
index images

Harvest POD &

claim images
from carrier and
customer
websites

Download and
index lockbox
images
SYS

SYS

Enabling World Class Deduction Excellence

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Disputes form a worklist for Deduction

Analysts

Cash Applier
assigns
reason code
to dispute

Route disptue
to appropriate
Deduction
Analyst

Offset disputes
and existing
credits

SYS

Enabling World Class Deduction Excellence

SYS

17

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Dispute are resolved

Correspondence
generated to
customer
SYS

Deduction
Analyst
researches
dispute

Deduction
Analyst
dispositions
dispute

Dispute offset
with repayment
or credit
SYS

Dispute cleared
to G/L
SYS

Enabling World Class Deduction Excellence

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Reporting
ALV grid that is the output of the DRA
worklist and of UDM_DISPUTE enables
users to select/sort/export data easily
eliminating the need for some report
development real time
Some reporting from Teradata - daily
Reconciliation challenges

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Lessons Learned

Consider a phased solution

Learn as you go
Test, test, and test some more
Dedicated business and IS resources,
including IS Finance expert
Every customer is different include as
many perspectives as possible

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Challenges were still working through

Batch processing
Volume / time balance
Account locking issues

Imaging
File names and extensions led to correspondence
issues
Improving match rate of Web Aggregated and nonWeb Aggregated images to dispute cases (spaces,
special characters, truncations, etc.)

Enabling World Class Deduction Excellence

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Comments from Users

I am able to offset deductions the same day rather than waiting until
the next day.
Can see the deductions timelier. If back up is attached to deduction
it is quicker to clear.

It is great having everything in one place to view.

I can see all the paperwork associated with a dispute immediately. I
can attach paperwork to a dispute that's not in my work list. I can
see my new disputes quicker than having to wait until the next
business day.
While my view at this point is not entirely positive, I do believe that as
time goes on I will be able to work more efficiently than in DMS.

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Questions?

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