Presentation Transcript

1. 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. 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
2. DRIVING ACCOUNTS PAYABLE PERFORMANCE Name TitleDate
3. ACCOUNTS PAYABLE IS CHANGING THE ADOPTION OF AP AUTOMATION SOLUTIONS IS DRIVING A SHIFT IN ACCOUNTS PAYABLE PERFORMANCE 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
4. AP PERFORMANCE BENCHMARKED INDUSTRY ANALYSTS HAVE BENCHMARKED PERFORMANCE OF AP DEPARTMENTS GLOBALLY AVERAGE PERFORMANCE KPIS Source: Ardent Partners (2013)
5. THE BUSINESS OPPORTUNITY OFBEST-IN-CLASS AP PERFORMANCE LEADING COMPANIES HAVE MADE A STEPCHANGEIN AP PERFORMANCE – AVERAGE PERFORMANCE vs. BEST-IN-CLASS PERFORMANCE Source: Ardent Partners (2013)
6. WHAT ABOUT US? HOW DOES OUR COMPANY MEASURE UP? Source: Ardent Partners (2013)
7. THE BOTTOM LINE IMPACT OFBEST-IN-CLASS AP PERFORMANCE BY SIMPLY LOOKING AT THE COST OF PROCESSING INVOICES, THE CASE FOR CHANGE IS COMPELLING $000K XK invoices
8. WHO ARE THE AP LEADERS?
9. 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 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 Integrated with 5 ERPs 40% FTE reduction 90% touchless processing AP Automation
10. CHALLENGES 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 SOLUTIONS Implemented Invoice Automation solution Integrated solution across multiple ERP middleware 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 60% touchless processing 6 million invoices handled 56% FTE Reduction 14 countries AP Automation
11. CHALLENGES 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 SOLUTIONS Implemented AP Automation solution Consolidation of multiple processing locations to a single SSC Integration across multiple ERP middleware 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 4x more work with same AP resources £400k1st year savings 75% shorter invoice cycle times AP Automation
12. CHALLENGES 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 SOLUTIONS Implemented Invoice Automation solution Integrated solution across multiple ERP middleware Built in new workflow solution 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 450kinvoices 97% paperless 25% FTE reduction $160kAnnual savings AP Automation
13. CHALLENGES 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) SOLUTIONS Automated procure-to-pay process solution Implemented Invoice Automation solution Integrated purchase management Integrated contract lifecycle management RESULTS 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 55% of invoices received electronically d 2.5 million invoices handled 35% AP efficiency gains 99.5%on-time payment AP Automation
14. HOW DO AP LEADERS ACHIEVE BEST-IN-CLASS PERFORMANCE?
15. ACHIEVING BEST-IN-CLASS PERFORMANCE BEST IN CLASS PERFORMERS SHARE COMMON CHARACTERISTICS RELATED TO TECHNOLOGY USAGE Source: Ardent Partners (2013)
16. E-INVOICING PLAYS A KEY ROLE INCREASING THE NUMBER OF RECEIVED E-INVOICES DRIVES DOWN THE COST OF INVOICE PROCESSING $18.07 Average Cost Per Invoice $10.55 $8.30 $6.08 % of Invoices Received Electronically Source: Ardent Partners (2013)
17. WHICH TECHNOLOGY SOLUTIONS WILL DRIVE OUR AP PERFORMANCE?
18. IMPACTING KPIs OF <COMPANY> EXPERIENCES OF BiC PERFORMERS SHOW WHICH SOLUTIONS ARE THE BIGGEST VALUE DRIVERS
19. IMPACTING KPIs OF <COMPANY> EXPERIENCES OF BEST-IN-CLASS PERFORMERS SHOW WHICH SOLUTIONSCAN IMPACT ON OUR KEY VALUE DRIVERS Match-Orders Match-Plans XML, Virtual Printer PDF/e-mail CloudScan Supplier Portal Scan & Capture Activation Services Match-Orders Match-Plans Recipient resolvers Smart Coding Mobility Auto-validation Only valid invoices progress Invalid invoices are flagged Supplier self-correction Recipient resolvers Smart Coding Mobility Collaborate Manual Matching
20. SUMMARY HOW AP AUTOMATION WILL DRIVE OUR FINANCIAL PERFORMANCE Match-Orders Full automation 1st time match rates Match-Plans Invoices per FTE Partial automation Smart workflows/coding Recipient Resolvers Invoice cycle times Discounts captured Collaborative tools Collaborate Mobility Mobile Days payable outstanding Supplier portal Portal Cost per invoice E-invoicing E-invoice % by volume 100% e-Invoicing