Post on 26-Jul-2018
Adam Nice
Sr. Manager & Global Process Driver – Credit-to-Cash
Pfizer Global Financial Solutions
Pfizer, Inc.Credit-to-Cash & FSCM Initiative
• Pfizer Inc. Overview
• Organization Credit-to-Cash Highlights
• Current Credit-to-Cash Systems Footprint
• ERP / FSCM Global Deployment– Global Gap Analysis
– Solution Design
– Module Assessment To-Date
• Q&A
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Pfizer, Inc. – Credit-to-Cash & FSCM Initiative
Agenda
• World’s largest research-based pharmaceutical company
• Headquartered in New York, NY
• Founded in 1849
• Total Global workforce of ~110K colleagues
• 2009 annual sales revenue of ~$50B
– 43.5% U.S. / 56.5% Rest of World
• Select key products:
– Lipitor (Biopharmaceuticals)
– Lyrica (Biopharmaceuticals)
– Revolution (Animal Health)
– Advil (Consumer)
– Centrum (Consumer)
• Completed ~$68B acquisition of Wyeth in Q4, 2009
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Pfizer, Inc. – Credit-to-Cash & FSCM Initiative
Pfizer, Inc. Overview
• Pfizer operating model
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Pfizer, Inc. – Credit-to-Cash & FSCM Initiative
Pfizer, Inc. Overview
Biopharmaceutical Businesses
Diversified Businesses
Manufacturing
Enabling Functions
CustomerFocused
Primary CareSpecialty
Care Oncology
Established Products
Emerging Markets
Animal Health CapsugelConsumer Healthcare
Nutrition
Nine Diverse Businesses Supported byTwo Focused Research Organizations
Business Units Including:Development, Medical,
Sales & Marketing
PharmaTherapeuticsResearch & Development
BioTherapeutics Research & Development
• Global trade AR balance of ~$13B at end of Q4, 2010– U.S. domestic trade AR balance of ~$4B
– International (ex-U.S.) trade AR balance of ~$9B
• Global past due as a % of total AR of ~16%– U.S. domestic past due as a % of total AR of ~1%
– International (ex-U.S.) past due as a % of total AR of ~23%
• Pfizer utilizes a Global shared services network to support the following Credit-to-Cash functions:– Accounts Receivable
• Cash Application
• AR Accounting
– Collections Management• Strategic Collections
• Non-strategic Collections
• Deduction Management
– Credit Risk Management• Credit Policy
• Portfolio Risk Assessment / Reporting
• Customer Risk Analysis
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Pfizer, Inc. – Credit-to-Cash & FSCM Initiative
Organization Credit-to-Cash Highlights
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Pfizer, Inc. – Credit-to-Cash & FSCM Initiative
Organization Credit-to-Cash Highlights
Memphis, TN
GFS Americas
Markets Supported:
• Canada
• Mexico
• North Latin America
• United State & Puerto Rico
Dalian, China
GFS Asia
Markets Supported:
• Australia / New Zealand
• China
• Japan
• Singapore
Dublin, Ireland
GFS Europe
Markets Supported:
• Austria
• Belgium
• Denmark
• France
• Finland
• Germany
• Ireland
• Italy
• Netherlands
• Norway
• Portugal
• Spain
• Sweden
• Switzerland
• United Kingdom
Delhi, India
Bucharest, Romania
Dalian, China
Business Process Outsourcing (BPO)
Pfizer's Business Process Outsourcing (BPO) partners are
Genpact and Accenture. Pfizer's processes are supported
from six strategic locations.
Chennai, India
Bangalore, India
Prague, Czech Republic
Shared Services Markets
Pfizer Location
BPO Location
Three shared services operations offices supported by strategically placed BPO offices
• Pfizer U.S. operates with following Credit-to-Cash systems:
– Revenue Cycle System (custom application)
• Sales Order Management
• Warehouse Management
• Billing
• Credit Management
– Revenue Accounting System (custom application)
• Inventory Accounting
• Sales Reporting
– POLARIS (custom application)
• Accounts Receivable Sub-ledger
• Cash Application
• Accounting Interface to GL System
– Claims Management System (custom application)
• Biopharmaceutical Deduction and Claims Management
– Various Data Warehouses for Reporting
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Pfizer, Inc. – Credit-to-Cash & FSCM Initiative
Current Credit-to-Cash Systems Footprint
• 24 Pfizer ex-U.S. Markets operate with following Credit-to-Cash systems:
– Oracle e-Business Suite 11.5.10
• Sales Order Management
• Inventory Accounting
• Billing
• Sales Reporting
• Credit Management
• Advanced Collections
• Accounts Receivable Sub-ledger
• Cash Application
– Various Warehouse Management Systems
– Various Data Warehouses for Reporting
• Remaining Markets operate with locally defined Credit-to-Cash systems footprints – Global Oracle deployment discontinued in 2010
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Pfizer, Inc. – Credit-to-Cash & FSCM Initiative
Current Credit-to-Cash Systems Footprint
• Pfizer acquired a mature SAP footprint (ECC 6.0) with the 2009 Wyeth acquisition
• Strategic decision by Pfizer ERP Steering Committee in 2009 to deploy SAP to all Global Pfizer sites
– 53 total Markets
– ~98% of revenue
• Multiple functions including:
– Finance and Accounting
– Procurement (Direct)
– Sales Order Management
– Distribution
– Supply Chain Management
– Plant MRP (Manufacturing Resource Planning)
– Quality and Regulatory
– Management Reporting
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Pfizer, Inc. – Credit-to-Cash & FSCM Initiative
FSCM Global Deployment
• Global Gap Analysis (~3 months):– Legacy Wyeth ERP footprint vs. Pfizer systems footprint (requirements)
analyzed in 2009
– High level gaps identified
– Gaps analyzed for potential solutions utilizing delivered SAP products where possible
– Solutions assessed for cost / timing
– Primary gaps identified in legacy Wyeth SAP footprint for Credit-to-Cash:• Credit Management
– Automated credit scoring (risk / credit line)
– Automated approvals management (workflow)
– Trend analysis and customer financial data repository
• Collections– Collection strategy definition / automation
– Automated daily worklist generation / prioritization
– Centralized collections workbench / launch-pad
• Deduction / Claims Management– Automated / manual case creation for applicable deductions / claims
– Automated case routing and data population
– End-to-end deduction / claim tracking and reporting10
Pfizer, Inc. – Credit-to-Cash & FSCM Initiative
FSCM Global Deployment
• Credit-to-Cash Global Solution:– Implement SAP Financial Supply Chain Management (EhP 4)
• Positive assessment of product with SAP and HighRadius
• Preserves SAP functionality
• Can meet Pfizer systems footprint / requirements – will be customized where gaps exist
• Legacy Wyeth already leveraging SAP BillerDirect functionality (FSCM component)
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Pfizer, Inc. – Credit-to-Cash & FSCM Initiative
FSCM Global Deployment
• Global Solution Design (~3-4 months):– Target: Global model that covers ~80% of all Market business processes
– Methodology:• Series of Global workshops to identify Global vs. local requirements
• Analysis / approval of scope for delivery of FSCM functionality over 15 month deployment period (Global Model Enhancement “waves”)
• Markets will receive enhanced functionality either via deployment projects or via retrofits (for sites deployed prior to release of full functionality)*
• Wave #1 (February, 2011):– Collections Management (full functionality)
– Dispute Management (~80% functionality)
– Credit Management (~60% functionality)
• Wave #2:– Credit Management (full functionality)
• Wave #3:– Dispute Management (full functionality)
• TBD:– BillerDirect (full functionality)
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Pfizer, Inc. – Credit-to-Cash & FSCM Initiative
FSCM Global Deployment
*Exception: Credit Management
• Module Assessment To-Date:– Collections Management:
• Pros:– Robust out-of-the-box functionality
– Flexibility to adapt Collections approach based on changing Market / organizational conditions
– Integration with AR, Dispute Management, and Credit Management
– Ability to “rebuild” original invoices (from residuals)
– BI reporting
• Cons:– Lack of correspondence functionality
– Business Partner concept adds additional master data –automation would help master data management efficiencies
– Dispute Management:• Pros:
– Automated dispute case creation
– Case concept with ability to store full repository of information
– Case tracking and analysis
– BI reporting
• Cons:– Manual routing (requires customization)
– Person Responsible / Processor / Coordinator process can be complicated / manual
– Lack of visibility in document flow (adds complexity to managing claims) 13
Pfizer, Inc. – Credit-to-Cash & FSCM Initiative
FSCM Global Deployment
• Module Assessment To-Date:– Credit Management:
• Pros:– Credit scoring capabilities on internal and external data
– Workflow capabilities for alerts
– Open framework provides flexibility to customize to requirements
– Additional fields on Business Partner facilitate robust credit information
– Ability to import from multiple credit rating agencies
– BI reporting
• Cons:– Global activation – requires large-scale change management effort due to transition from
SD Credit Management integration / functionality
– Open framework requires customization to meet requirements
– VKM1 (order block /release) replacement lacks functionality – requires customization to filter by credit analyst, and to view the reason for order block
– Business Partner concept adds additional master data –automation would help master data management efficiencies
– Less out-of-the box functionality than Dispute Management and Collections Management
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Pfizer, Inc. – Credit-to-Cash & FSCM Initiative
FSCM Global Deployment