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These presentation slides are designed as content for AP Change Makers building their own internal presentations on the subject of Accounts Payable Automation.

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Presentation on theme: "These presentation slides are designed as content for AP Change Makers building their own internal presentations on the subject of Accounts Payable Automation."— Presentation transcript:

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2 These presentation slides are designed as content for AP Change Makers building their own internal presentations on the subject of Accounts Payable Automation. The slides present market data, high-level business case inputs and examples of best practice results achieved by those companies who have successfully implemented AP Automation solutions. If you have any questions about these slides or would like further information please do not hesitate to get in touch. These Kickstarter slides are part of a our broader toolkit for AP Change Makers, which also includes: RFP Guide: Ensure you’re asking the right question to select the right partner Check Lists: Top things to consider when initiating an AP Automation project Performance Calculator: Coming soon – benchmark your AP performance against best-practice AP CHANGE MAKER KICKSTARTER PRESENTATION SLIDES

3 Name Title Date DRIVING ACCOUNTS PAYABLE PERFORMANCE

4 THE ADOPTION OF AP AUTOMATION SOLUTIONS IS DRIVING A SHIFT IN ACCOUNTS PAYABLE PERFORMANCE ACCOUNTS PAYABLE IS CHANGING Eliminating inefficient paper based processes Reducing the operational cost of finance Increasing productivity and effectiveness More predictable cash- management Better supplier relationships / access to early payment discounts Increasing accuracy and control

5 Source: Ardent Partners (2013) INDUSTRY ANALYSTS HAVE BENCHMARKED PERFORMANCE OF AP DEPARTMENTS GLOBALLY AVERAGE PERFORMANCE KPIS AP PERFORMANCE BENCHMARKED

6 Source: Ardent Partners (2013) LEADING COMPANIES HAVE MADE A STEPCHANGE IN AP PERFORMANCE – AVERAGE PERFORMANCE vs. BEST-IN-CLASS PERFORMANCE THE BUSINESS OPPORTUNITY OF BEST-IN-CLASS AP PERFORMANCE

7 BENCHMARKSINDUSTRY AVERAGEBEST-IN-CLASS Average cost to process an invoice $19.10$2.20 # Number of invoices processed per FTE per annum 25,45242,708 # Number (%) of invoices processed straight- through 18.4%44.2% # Average time to process an invoice 13.5 days3.3 days # Invoice (%) exception rate 16.1%7.7% # Number (%) of invoices paid on time 70.8%91.4% # HOW DOES OUR COMPANY MEASURE UP? WHAT ABOUT US? Source: Ardent Partners (2013)

8 THE BOTTOM LINE IMPACT OF BEST-IN-CLASS AP PERFORMANCE BY SIMPLY LOOKING AT THE COST OF PROCESSING INVOICES, THE CASE FOR CHANGE IS COMPELLING XK invoices $000K

9 WHO ARE THE AP LEADERS?

10 Reduced headcount dedicated to A/P by 40% Automated matching of over 90% of invoices Reduced invoice handling cycle times On-going $ savings through continuous process improvements AP Automation CHALLENGES Siloed processing solutions and complex IT environment, including multiple ERP’s Paper based invoice handling & matching processes Complex account payable processes that included purchase invoices per year SOLUTIONS Implemented new Invoice Automation solution Integrated solution across multiple ERP middleware RESULTS Integrated with 5 ERPs 90% touchless processing 40% FTE reduction

11 AP Automation CHALLENGES SOLUTIONS RESULTS Significant productivity increases, processing millions of invoices globally 60% fully automatic, straight-through processing of PO based invoices Greater visibility and efficient control of invoices Lack of visibility of financial operations across multiple ERPs Costly and time-consuming manual invoice processing Goal to achieve higher level of (AP) automation globally Need to support solution rollouts within the global organization Implemented Invoice Automation solution Integrated solution across multiple ERP middleware 6 million invoices handled 14 countries 60% touchless processing 56% FTE Reduction

12 AP Automation CHALLENGES SOLUTIONS RESULTS Reduced invoice cycle times by 75% Annual processing volumes of AP department increased from 10,000 to 40,000 invoices Overall cost savings with SSC program of £400,000 in the 1st year alone Need to reduce costs and boost productivity of AP function Lack of financial process visibility across multiple ERPs Need to enable a Shared Service Center program Implemented AP Automation solution Consolidation of multiple processing locations to a single SSC Integration across multiple ERP middleware 4x more work with same AP resources 75% shorter invoice cycle times £400k 1st year savings

13 AP Automation CHALLENGES SOLUTIONS RESULTS Annual savings of $160,000 delivered by Invoice Automation 25% clerical staff reduction Greater visibility and control over the 450,000 invoices processed annually 97% of invoices processed electronically High cost of time and effort in processing invoices Issues with invoice tracking and auditability Manual management of 450,000 invoices Goal to streamline workflow and improve efficiencies across AP Implemented Invoice Automation solution Integrated solution across multiple ERP middleware Built in new workflow solution 450k invoices 25% FTE reduction $160k Annual savings 97% paperless

14 AP Automation CHALLENGES SOLUTIONS RESULTS d 35% productivity improvement in Accounts Payable FTE savings target achieved Improved control environment & Payment Cycles (99.5% invoices processed w/ service levels) 12,000+ users now using the solution Processing 3,500 invoices and 300 POs daily Over 2.5 million invoices processed per annum <5% of invoices received electronically Limited use of Purchase Orders Manual data entry of invoice details Manual control environment (e.g. checking of financial approvals) Automated procure-to-pay process solution Implemented Invoice Automation solution Integrated purchase management Integrated contract lifecycle management 2.5 million invoices handled 35% AP efficiency gains 99.5% on-time payment 55% of invoices received electronically

15 HOW DO AP LEADERS ACHIEVE BEST-IN-CLASS PERFORMANCE?

16 BEST IN CLASS PERFORMERS SHARE COMMON CHARACTERISTICS RELATED TO TECHNOLOGY USAGE ACHIEVING BEST-IN-CLASS PERFORMANCE Source: Ardent Partners (2013)

17 Average Cost Per Invoice % of Invoices Received Electronically $18.07 $10.55 $8.30 $6.08 INCREASING THE NUMBER OF RECEIVED E-INVOICES DRIVES DOWN THE COST OF INVOICE PROCESSING E-INVOICING PLAYS A KEY ROLE Source: Ardent Partners (2013)

18 WHICH TECHNOLOGY SOLUTIONS WILL DRIVE OUR AP PERFORMANCE?

19 EXPERIENCES OF BiC PERFORMERS SHOW WHICH SOLUTIONS ARE THE BIGGEST VALUE DRIVERS IMPACTING KPIs OF

20 XML, Virtual Printer PDF/ CloudScan Supplier Portal Scan & Capture Activation Services Match-Orders Match-Plans Match-Orders Match-Plans Recipient resolvers Smart Coding Mobility Recipient resolvers Smart Coding Mobility Collaborate Manual Matching Auto-validation Only valid invoices progress Invalid invoices are flagged Supplier self-correction EXPERIENCES OF BEST-IN-CLASS PERFORMERS SHOW WHICH SOLUTIONS CAN IMPACT ON OUR KEY VALUE DRIVERS IMPACTING KPIs OF

21 HOW AP AUTOMATION WILL DRIVE OUR FINANCIAL PERFORMANCE SUMMARY Full automation Partial automation Smart workflows/coding Collaborative tools Mobility Supplier portal E-invoicing Match-Orders Match-Plans Recipient Resolvers Collaborate Mobile Portal 100% e-Invoicing 1 st time match rates Invoices per FTE Invoice cycle times Discounts captured Days payable outstanding Cost per invoice E-invoice % by volume

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