Fusion 2013 Top 5 Habits of Highly Successful AP Depts
 

Fusion 2013 Top 5 Habits of Highly Successful AP Depts

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Fusion 2013 Top 5 Habits of Highly Successful AP Depts Fusion 2013 Top 5 Habits of Highly Successful AP Depts Presentation Transcript

  • Top 5 Habits of Highly SuccessfulAccounts Payable DepartmentsSession Number 210Rob DeVincentVP Product MarketingCorcentric
  • PresenterRob DeVincentVice President, Product MarketingCorcentric• Over 20 years experience in designing andimplementing Accounts Payable automationsolutions• Host of an AP educational Webinar series• Frequent speaker at various AP tradeshowsincluding Fusion, PayStream Advisors, IAPP,IOFM, and TAPN
  • 5 Habits of Highly Successful AccountsPayable Departments• What Sets the Leaders Apart• The 5 Habits– Moving to the Cloud– Paperless– Straight Through Processing– Automated Workflow– Dashboards (Visibility)• Summary• Q&A
  • WHAT SETS THE LEADERS APART
  • The Reveal• The least effective AP departments all had one thingin common … PAPER-BASED MANUALPROCESSES
  • Aberdeen Group, May 2011After Automation$4.84/invoicecost to process an invoice3.7 days/invoiceday to process an invoice4.1% year-over-yearincrease in early paymentdiscount abilityBefore Automation$25.83/invoicecost to process an invoice41.3 days/invoiceday to process an invoice.5% year-over-yearincrease in early paymentdiscount abilityBefore and After Automation
  • Aberdeen Group25%improvementin laborproductivity90-95%reductionin paperworkEliminatelost invoices,late paymentsImprovedtransparencyand visibilityMore Good News for theBest-in-Class*Based on results of companies utilizing full technology solution
  • THE 5 HABITS
  • HABIT 1MOVING TO THE CLOUD
  • Cloud in our Lives
  • Financial ImpactLower costs– No servers to buy, no software to purchase, instead you simplypay for usage on a monthly or annual basis
  • ScalabilityLower costs– As your AP needs grow, cloud-based solutions can grow withoutskipping a beat
  • Cloud vs SaaS vs InternetSoftwarePlatformInfrastructureInternetCloud ProviderMobileOfficeSmartPhoneHomeOfficeSaaS = Business Model Cloud = Hosting OptionSaaSPaaSIaaS
  • SaaS/Cloud BenefitsUpgrade frequency– 3 to 4 times a year, at no extra cost– Ensure you are always using the latest version of the solutionData storage– Data is stored off-site at a secure, reliable data center withredundant locations– Guarantee no service interruptionsSupport and maintenance– Built in to your subscription cost - no surprises– No required involvement from your IT team
  • SaaS ImpostersNot every SaaS provider is truly SaaS– Hosting in-house solutions– Web-based solutionTrue SaaS is multi-tenant– One common code baseSigns of SaaS imposters– Charge a significant implementation fee– Provide the option of not being on the latest release– You are not receiving 3 to 4 upgradesper year with new features– Ask for a SSAE 16 (formerly SAS 70)certification reportSaaS / CloudHybrid / In-house
  • HABIT 2PAPERLESS
  • 2x More likely to use technology to automateprocesses such as header data validationand duplicate invoice verification
  • Document and Data CaptureBuy OCR, enter manually or outsource.
  • Outsource Paper HandlingPartner with a vendor to automate this processand avoid spending money on costly scanningequipment.
  • Best Habits to PaperlessSupplier TransformationSupplier 3Invoice Virtualization CenterSupplier 2Supplier 1
  • What is E-invoicingPDFE-mailFax• Digital from creation• Issued, received, andprocessed electronically
  • Types of E-invoice Models
  • Transition to E-invoicing5050100%0%50%25%75%1 Year 2 YearE-invoicingPaper Conversion10903070E-invoicingPaper Conversion
  • HABIT 3STRAIGHT THROUGH PROCESSING
  • • Automating the task of comparing PO numbers, supplier IDs,and dollar amounts can increase profitability and efficiency– Automating these functions can reduce staff time spent on these tasksby 70% more than non-automated processes
  • What is STP?• Overcome barriers to automated matching andsend invoices straight through with no APprocessor involvement– Line item data is programmatically matched against PO andreceipt of goods data– When invoice data matches PO and receipt of goods data,the invoice can be matched without AP processorinvolvement– When an invoice fails to match, auto-routing rules can beset up to notify the appropriate person for resolutions,speeding up the exception handling process
  • STP OverviewPurchaseOrderAP/ERPSYSTEMNo HumanInterventionStraightThroughProcessing
  • STP Exception Reporting
  • HABIT 4AUTOMATED APPROVALWORKFLOW
  • WorkflowApproved Invoice / APReviewElectronicInterfaceAP SystemFirst Level ApprovalHigher Level Approval
  • SmartRoutingPurchase Order RequestorAttention Name or DepartmentVendor BasedInvoice AmountsBalance Due: $992.53
  • Approval Process
  • MobileSmartPhoneshipments grew56.6% while PCsgrew only 16.3%
  • HABIT 5DASHBOARDS (VISIBILITY)
  • More than twiceas likely to have automated workflow processes anddashboard solutions in place
  • • Dashboarding allows organizations to:– Measure key performance indicators (KPIs)• DPO, cost-per-invoice, supplier spend analysis, etc– Identify inefficiencies and impediments to productivitythat unnecessarily drain resources
  • Dashboard Examples
  • Dashboard Examples
  • Dashboard Examples
  • Dashboard ExamplesEmailPO Boxe-Invoice
  • Dashboard Checklist• Dashboard KPIs reduce time by putting therelevant information at your fingertips byproviding:– Graphical interface to monitor relevant KPIs– Real-time data– Drill down capability– Export capability (i.e. to Excel, etc)– Management level access and ease of use– Ad hoc reporting
  • 5 HABITS OF HIGHLY SUCCESSFUL ACCOUNTS PAYABLE DEPARTMENTSSUMMARY
  • Summary• Best-in-class AP departments prioritize specific AP processes and invest inautomation• SaaS/Cloud provides for lower costs and faster implementation leading togreater ROI• To make AP process improvements, it is critical to plan a paperlessstrategy• Automated invoice workflows can eliminate unnecessary work andprovide needed controls• STP automation can streamline your processes so you can do morewithout adding staff while reducing errors• Dashboarding is essential to measuring KPIs and gives you a deeper lookinto the effectiveness of your AP processes
  • Any questions?