French Co. Employs Expense Tool

Paris-based specialty chemical company Rhodia is globalizing its expense reporting platform, provided by a European supplier with global ambitions, including a rollout in the United States that was initiated last year.

The company began using Paris-based Ulysse's Etap-On-Line tool for expense reporting in 2001, largely in France, said Yves Bosne, Rhodia's financial director and European director for shared accounting service centers.

"It was a way to control the cost of travel and centralize all the management and control of the expense claim, so it's improved the way we have reclaimed the value-added taxes," Bosne said.

All Rhodia subsidiaries have used SAP as their enterprise resource planning system since 2005, into which the Etap-On-Line tool could be integrated. From France, use of the tool was expanded to the United Kingdom, Italy and Spain, and more recently Rhodia has pursued implementation in Germany, according to Bosne. With each rollout tailored to the specific tax regulations of each country, Rhodia has seen a quick return on investment in VAT recovery alone, he said. "For us, it was realized in one year," Bosne said.

Etap-On-Line managing director Pierre-Emmanuel Tetaz said, "Having a flexible organization is a very important point. Often in this market, you see a very standardized approach, and you get poor, limited capabilities."

The return on investment in North America, where Rhodia has about 1,000 users of the tool, is harder to quantify, though the company now has more detail about its travel program there, Bosne said. "We have better organization, and so many users appreciate the power to organize expense claim reports directly," he said.

Tetaz said working with purchasing cards was one challenge with the North America expansion. "It was interesting to work on those types of cards, because they are implemented less here than in the United States," he said.

Using the Etap-On-Line tool has made the expense reporting process largely paperless for Rhodia. Travel requests are approved online, and both American Express and Société Générale provide statement files that are directly integrated into the tool, leaving employees only to verify expense claims before approval.

The travel authorization also has helped Rhodia control costs, as it has reduced some types of travel, Bosne said. Travel policy specifics, such as the authorization of airline economy class only, are organized in the system, he said.

Overall cost of implementation has been low, he said. "We have a high level of security and have never had any difficulties. Globally, there is no problem with maintenance," Bosne said.

Rhodia also plans further expansion of the expense tool to other countries this year.

Ulysse has been in the travel and expense business for about 10 years and most recently opened subsidiaries in the United Kingdom and Canada. Most of its clients are European or pan-European.

"The plan is to become the European leader for expense management software," Tetaz said. "We also want to establish as many connections as possible in the booking tool area, as we have decided not to build or buy a self-booking tool."