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