Electronic InvoicingField Ticket System Implementation

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Electronic Invoicing/Field Ticket System
Implementation

• Quadrem ISC Meeting
• October 27-28, 2005

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The worlds largest diversified resources company
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Project Background Why?

• Current invoice review and approval process is
  extremely cumbersome
• 80 of spend within the Drilling organization is
  controlled by 10 of the suppliers
• Current inefficiencies have impacted the Procure
  to Pay process and payment cycle time
• Independent vendor compliance audit showed
  opportunities to avoid pricing discrepancies and
  capture available volume activity discounts
• Current system does not allow for detail spend
  capture

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Project Benefits

• Improved vendor compliance with contract terms
  (prices, discounts, etc.)
• Reduced invoice processing time
• Increase productivity of Drilling Engineers
  Accountants
• Reduced invoice processing costs
• Improved spend capture and analysis for project
  benchmarking
• Improved spend capture and analysis for
  maximizing vendor terms and conditions

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System Solution

• Can be used by Quadrem hosted and integrated
  suppliers
• Maintains a price catalogue of contracted prices
  between BHPB and the Supplier
• Matches invoice pricing to catalogue where
  applicable
• Flags pricing discrepancies and notifies the
  Supplier and Buyer of potential issues
• Sends an electronic Service Entry Sheet (SES) to
  BHPB for uploading to ERP system
• Upon SES approval, sends electronic invoice to
  BHPB for uploading to ERP system
• Line level expenditure data capture tied to
  procurement and accounting codes
• Reduces manual work
• Enhances ability to earn discounts
• Audit trail capability and SOX compliance

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Solution Selection Process

• Spent 8 months reviewing service offerings of
  market leaders
• BHPB Minerals has long standing successful
  relationship with Quadrem
• Opportunity to more easily leverage solution with
  other BHPB entities
• Depth and scalability of offered solution
• Global solution and support structure
• Supplier on boarding expertise
• SAP knowledge

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Project KPIs
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System Solution