How the World’s Largest Airlines Capitalize on AP Automation

Presented By

Special Guest:

Joni Geurts – AP Manager JetBlue Airways

Ronda Head – AP Manager Delta Air Lines

About iPayables

iPayables, founded 1999, creates invoice and payment platform.

Success based on solid technology (US Patent 6,826,542, others pending) and high service levels.

Manages Invoices for over 68,000 active users from 150 countries

33,781,669,971 invoices in the past 12 months.

Processed over $4,000,000,000 worth of invoices and over $380,000,000 worth of P-Card in 2012

Network:

19,974 Buyers

71,230 Suppliers

40,966 electronic

30,264 imaged

The Technology Platform

Invoice Receipt e-invoice Imaged invoice File load

Approval Processing Workflow Approval Purchase Order

Matching Dispute Resolution

Payment Processing

ACH & Early Payment P-card Check

Reporting/Reconciliation

Status Review Dashboards Remittance

Invoice Capture

Suppliers Enter or Upload e-invoices (Paper invoices are converted to electronic).

Invoices are automatically routed based on your business rules (workflow).

Inquiry, Dispute Resolution eliminate payables involvement.

Discount Capture

Example of Discount Capture

Current Annual Discount Capture

Expected Annual Total Discount Capture

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

Discount CaptureMonthly Spend 10,000,000 Current Discount Capture 40,000$ Current Lost Discounts (Auto-Slope Target) 10,000$ Required Discount APR 32%Average Days Paid Early 20 Average Discount 1.75%Expected Participation in Early Payment 2%

Recovered Lost Discounts 10,000$ Expected Monthly Discount Amount for Early Payment 3,506.85

Annual Discount Gain for Recovered Lost Discounts 120,000$ Annual Discount Gain for Early Payment 42,082$

Current Annual Discount Capture 480,000$ Expected Annual Total Discount Capture 642,082$

Company A:

Business Case

Redeployed Payables Headcount 72%

Extended overall length of payment terms

Higher InvoiceWorks® Card rebate amounts than all InvoiceWorks® Costs

Current proposal to implement iPayables Payment Services

Estimated $180,000/month in new discounts 19-22% return on Working Capital Investment $1 M per year of net profit

Delta Air Lines

Customer Benefits

Efficiency Gains No Paper, Data Entry, or Archiving Eliminate Most Match Exceptions, Inquiries, and

Disputes

Cash Management/Discounts More Predictable, Flexible Cash Flow Reduce Overall Spend with Discounts and

Rebates

Better Control Real Time Visibility Enforce Match and Approval Rules Improve Contract Compliance Complete Audit History

Supplier Benefits

Process Automation Eliminate billing processing costs (printing & postage) Eliminate inbound check processing with ACH or P Card Upload invoices from A/R or ERP system or manually

“flip” online POs Resolve disputes and view PO match exceptions in

minutes, not weeks

Other Benefits Unprecedented management of payment timing View payment status online anytime $4-$13 Savings Per Transaction Improved Customer Relations

NO SUPPLIER FEES!!!!!!!!!