ap change maker kickstarter presentation slides
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AP CHANGE MAKER KICKSTARTER PRESENTATION SLIDES. These presentation slides are designed as content for AP Change Makers building their own internal presentations on the subject of Accounts Payable Automation. - PowerPoint PPT PresentationTRANSCRIPT
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
Name
TitleDate
DRIVING ACCOUNTS PAYABLE PERFORMANCE
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
Source: Ardent Partners (2013)
INDUSTRY ANALYSTS HAVE BENCHMARKED PERFORMANCE OF AP DEPARTMENTS GLOBALLY
AVERAGE PERFORMANCE KPIS
AP PERFORMANCE BENCHMARKED
Source: Ardent Partners (2013)
LEADING COMPANIES HAVE MADE A STEPCHANGEIN AP PERFORMANCE – AVERAGE PERFORMANCE vs. BEST-IN-CLASS PERFORMANCE
THE BUSINESS OPPORTUNITY OFBEST-IN-CLASS AP PERFORMANCE
BENCHMARKS INDUSTRY AVERAGE BEST-IN-CLASS <COMPANY
NAME>Average cost to
process an invoice $19.10 $2.20 #
Number of invoices processed per FTE
per annum 25,452 42,708 #
Number (%) of invoices processed
straight-through 18.4% 44.2% #
Average time to process an invoice 13.5 days 3.3 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)
THE BOTTOM LINE IMPACT OFBEST-IN-CLASS AP PERFORMANCE
BY SIMPLY LOOKING AT THE COST OF PROCESSING INVOICES, THE CASE FOR CHANGE IS COMPELLING
XK invoices
$000K
WHO ARE THE AP LEADERS?
• 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 430.000 purchase
invoices per year
SOLUTIONS • Implemented new Invoice Automation solution • Integrated solution across multiple ERP middleware
RESULTS
Integrated with 5 ERPs90% touchless processing40% FTE reduction
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 invoice
s handled
14 countries
60% touchless processin
g
56% FTE Reduction
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
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 invoice
s
25% FTE reduction
$160kAnnual savings
97% paperless
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
HOW DO AP LEADERS ACHIEVE BEST-IN-CLASS PERFORMANCE?
BEST IN CLASS PERFORMERS SHARE COMMON CHARACTERISTICS RELATED TO TECHNOLOGY USAGE
ACHIEVING BEST-IN-CLASS PERFORMANCE
Source: Ardent Partners (2013)
Document imagining/scanning
Automatic routing & approval workflow
E-invoicing solutions
Supplier/B2B/payment network
Automated data capture & extraction
87%
59%
45%
38%
31%
52%
27%
21%
17%
10%
All others Best-In-Class
Aver
age
Cost
Per
Invo
ice
% 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)
WHICH TECHNOLOGY SOLUTIONS WILL
DRIVE OUR AP PERFORMANCE?
EXPERIENCES OF BiC PERFORMERS SHOW WHICH SOLUTIONS ARE THE BIGGEST VALUE DRIVERS
IMPACTING KPIs OF <COMPANY>
• XML, Virtual Printer
• PDF/e-mail• 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 SOLUTIONSCAN IMPACT ON OUR KEY VALUE DRIVERS
IMPACTING KPIs OF <COMPANY>
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
1st time match rates
Invoices per FTE
Invoice cycle times
Discounts captured
Days payable outstanding
Cost per invoice
E-invoice % by volume