The State of ePayables 2016: Higher Ground - IOFM · The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: The State of ePayables 2016: Higher Ground Andrew Bartolini

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

The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 2

Table of Contents

• Introduction

• The State of Accounts Payable in 2016

• Best-in-Class AP Performance

• Strategies for Success

Copyright © 2016 - Ardent Partners Ltd.


SPEAKER

PROFILE


Analyst firm focused on supply management

Research, news, & analysis for AP and

finance professionals

www.payablesplace.com

Andrew Bartolini


Ardent Partners

http://www.payablesplace.com/


http://www.cporising.com/

http://www.cporising.com/



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]



Getting to AP’s “Higher Ground:”

What Will It Take?



THE STATE OF ACCOUNTS

PAYABLE IN 2016


The Evolution of Accounts Payable

Back OfficePoint of

Collaboration

True Intelligence

Hub



Top Business

Pressures on AP

40% • Enhance visibility and analytics

37% • Reduce invoice-processing costs

31% • Improve procurement collaboration

30% • Improve supplier collaboration



Goals for Today’s AP Organizations (next 24 months)


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


22%

40%

24%

14% Heavy collaboration

Moderate collaboration

Collaboration only onspecific projects and tasks

Little or no collaboration


AP & Procurement Collaboration


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



Ardent Partners ePayables Framework



Top Priority to Improve in 2016


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


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



Satisfaction with DPO

19%

65%

16%Very satisfied; needslittle improvement

Moderately satisfied;needs someimprovement

Not satisfied; needssignificant improvement



That Persistent Paper Problem


Invoice Formats Payment Formats

66%

34%

Manual Electronic

37%

63%

Paper check or manual payment

Electronic payment (ePayment)


Why Paper is the Problem



Why Reducing Paper is the Solution


$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


Roadblocks to Paperless


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


THE BEST-IN-CLASS

AP FUNCTION


The 2016 AP Benchmarks


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%


Best-in-Class AP Performance in 2016


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%


Core AP Capabilities: Best-in-Class vs. All Others



Technology Usage: Best-in-Class vs. All Others



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?



RECOMMENDATIONS FOR

ACTION


The Best-in-Class

AP Function is…

Agile

Intelligent Automated

CollaborativeStrategic



Exceptions are

unacceptable

“Simple” AP automation isn’t enough

Collaboration is king

Transform AP into an

intelligence hub



Contact

Information

For more information please visit:www.ardentpartners.com

Andrew Bartolini


Ardent Partners

[email protected]

@andrewbartolini

http://www.ardentpartners.com/

mailto:[email protected]

Documents

The State of ePayables 2016: Higher Ground - IOFM · The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: The State of ePayables 2016: Higher Ground Andrew Bartolini