The State of ePayables 2016: Higher Ground - IOFM · The Accounts Payable & Procure-To-Pay...
Transcript of The State of ePayables 2016: Higher Ground - IOFM · The Accounts Payable & Procure-To-Pay...
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:
The State of ePayables 2016:
Higher Ground
Andrew Bartolini
Chief Research Officer
Ardent Partners
May 24, 2016
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Table of Contents
• Introduction
• The State of Accounts Payable in 2016
• Best-in-Class AP Performance
• Strategies for Success
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SPEAKER
PROFILE
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Analyst firm focused on supply management
Research, news, & analysis for AP and
finance professionals
www.payablesplace.com
Andrew Bartolini
Chief Research Officer
Ardent Partners
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About this Research Study
Ardent Partners surveyed nearly 200 finance, AP, treasury and procurement professionals in
March to May 2016
More than 20 distinct industries were represented in the research study
71% of respondents were based in North America (19% EMEA; 9% Asia-Pacific; 1% South
America).
The report tackled the current “state” of accounts payable, ePayables technology, and
highlighted Best-in-Class strategies for success.
To request a copy of the final report, email me at:[email protected]
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Getting to AP’s “Higher Ground:”
What Will It Take?
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THE STATE OF ACCOUNTS
PAYABLE IN 2016
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The Evolution of Accounts Payable
Back OfficePoint of
Collaboration
True Intelligence
Hub
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Top Business
Pressures on AP
40% • Enhance visibility and analytics
37% • Reduce invoice-processing costs
31% • Improve procurement collaboration
30% • Improve supplier collaboration
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Goals for Today’s AP Organizations (next 24 months)
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17%
30%
33%
37%
53%
Improve the commercial card program
Transform AP into a more strategic and agilebusiness function
Reduce operational costs on AP-relatedprocesses
Improve collaboration and process linkagebetween AP and procurement
Automate more AP processes
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22%
40%
24%
14% Heavy collaboration
Moderate collaboration
Collaboration only onspecific projects and tasks
Little or no collaboration
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AP & Procurement Collaboration
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Today’s Challenges
for AP Professionals
The Erosion of AP’s Business Value
Lack of technology
budget
Too many exceptions Poor visibility
High costs and inflated
process times
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Ardent Partners ePayables Framework
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Top Priority to Improve in 2016
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22%
40%
13%
24%
Invoice Receipt: How AP receivesinvoices and captures key information
Invoice Processing: Invoice approval andrelated workflow
B2B Payments: How payments arescheduled and made
No specific priority/focused on ALL areas
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The Benefits of Electronic Payments22% of all AP groups report
increased accuracy and control
of payment delivery
22% 51% 52%52% of AP groups say that
electronic payments enable
more efficient and streamlined
processing (e.g., review,
approval, execution).
51% of enterprises rate cost
savings as the top benefit
seen from electronic
payments
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Satisfaction with DPO
19%
65%
16%Very satisfied; needslittle improvement
Moderately satisfied;needs someimprovement
Not satisfied; needssignificant improvement
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That Persistent Paper Problem
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Invoice Formats Payment Formats
66%
34%
Manual Electronic
37%
63%
Paper check or manual payment
Electronic payment (ePayment)
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Why Paper is the Problem
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Why Reducing Paper is the Solution
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$18.07
$10.55
$8.30 $6.08
$4
$9
$14
$19
< 10% 10-30% 30-60% > 60%Ave
rage
Co
st p
er
Invo
ice
% of Electronic Invoices Received
Best-in-Class AP groups that automate the department, see cost savings ranging from 38% to nearly 80% savings
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Roadblocks to Paperless
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18%
21%
31%
52%
58%
77%
Not a priority within the organization
Lack of executive support
Investment in a solution too high/ROI is unclear
Integration to internal or supplier systems
Internal change management
Getting suppliers to participate in the initiative
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THE BEST-IN-CLASS
AP FUNCTION
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The 2016 AP Benchmarks
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Metrics Market AverageCost to process a single invoice (all-inclusive cost) $13.47
Time to process a single invoice 11.4 days
Invoice exception rate 17.2%
Percentage of invoices processed “straight-through” 24.6%
Percentage of suppliers that submit invoices
electronically
21.0%
Percentage of invoices linked to a Purchase Order (PO) 58 .9%
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Best-in-Class AP Performance in 2016
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Metrics Best-in-
Class
All Others
Cost to process a single invoice (all-inclusive cost) $2.94 $15.96
Time to process a single invoice 3.6 days 16.6 days
Invoice exception rate 9.8% 19.1%
Percentage of invoices processed “straight-through” 54.1% 17.3%
Percentage of suppliers that submit invoices
electronically
44.0% 12.3%
Percentage of invoices linked to a Purchase Order
(PO)
73.1% 54.5%
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Core AP Capabilities: Best-in-Class vs. All Others
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Technology Usage: Best-in-Class vs. All Others
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24%
30%
31%
32%
45%
53%
56%
Better or more frequent suppliercollaboration
Better overall AP strategy
Executive support to improve AP operations
Better enterprise-wide communication plan
Better links to procurement
New (or improved) technology
Improve exception-handling and root causeanalysis
What Will Get Your AP Performance to the Next Level?
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RECOMMENDATIONS FOR
ACTION
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The Best-in-Class
AP Function is…
Agile
Intelligent Automated
CollaborativeStrategic
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Exceptions are
unacceptable
“Simple” AP automation isn’t enough
Collaboration is king
Transform AP into an
intelligence hub
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Contact
Information
For more information please visit:www.ardentpartners.com
Andrew Bartolini
Chief Research Officer
Ardent Partners
@andrewbartolini