ServiceMaster Improves Financial Supply Chain With Integrated Payment Solutions From JPMorgan
The ServiceMaster Company has grown from a research laboratory founded in 1927 to a global organization. ServiceMaster serves residential and commercial customers through a network of more than 5,000 company-owned location and franchise licenses, and its many brand names include Terminix, TruGreen, ServiceMaster Clean and Merry Maids.
ServiceMaster had successfully implemented a series of payment solutions designed to increase efficiencies, streamline processes and reduce paperwork while providing greater controls over its payments to suppliers and subcontractors. Among the solutions implemented by ServiceMaster were a JPMorgan Purchasing Card solution, which eliminated high volume, low-dollar invoices; JPMorgan ExacTrac, which enabled the company to issue limited-use account numbers to make secure payments on approved claims and put greater controls in place; and the establishment of an e-procurement system. (visit this link for more info on ServiceMaster's use of ExacTrac: (www.jpmorganchase.com/visit/servicemaster)
With these key building blocks in place, ServiceMaster sought to achieve further cost reductions and automation in accounts payable by implementing JPMorgan's Order-to-Pay solution to reduce hard-copy invoices, paper checks, and the exceptions and lead times to suppliers.
ServiceMaster worked with JPMorgan's Expansion Services, a unit within the Commercial Card division, to identify areas where ServiceMaster could expand its existing purchasing card and ExacTrac programs, as well as develop an order-to-pay solution. Together, the company and JPMorgan analyzed the company's current suppliers, targeting and contacting selected suppliers to join a settlement network and take advantage of unidentified and missed discount opportunities. Key to the effort was educating the supplier base to understand: a) how the program would benefit them and b) how they could use the settlement network to receive payments quickly and easily.
The company and JPMorgan employed best practices in supplier targeting and recruitment, which is key to a successful deployment. Supplier uptake was very strong, with about 80% of those targeted signing up for the network.
ServiceMaster has successfully negotiated discount terms or extended net terms with more than 65% of those enrolled in the settlement program, thus improving the company's working capital. Prior to implementing its order-to-pay solution, ServiceMaster missed early payment discounts because of a very manual, paper intensive process. But with JPMorgan Order-to-Pay, the company can process and pay invoices in a number of days to realize significant cost savings from these discounts.
JPMorgan's Order-to-Pay solution enables customers to automate electronic purchase order delivery, invoicing and payments across JPMorgan's proprietary global settlement network of more than 55,000 suppliers. In addition to dramatically reducing financial settlement processing costs and cycle time, JPMorgan's capabilities expand early payment discount opportunities, strengthen supplier relationships, and deliver a rapid return on investment. The solution provides supplier access through a common portal, affording a single point of interaction with both the Order-To-Pay system and with all of the suppliers' customers. The buyer side of the application resides on a customized Web site that is configured specifically to the requirements of Purchasing, A/P and Treasury.
SOURCE: ServiceMaster