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A C C O U N T S P A Y A B L E O P T I M I Z A T I O N S T U D Y
Canon Business Process Services
© 2014 Canon Business Process Services, Inc. All rights reserved.
Agenda
• Survey Overview
• Methodology
• Key Findings
• Key Insights
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© 2014 Canon Business Process Services, Inc. All rights reserved.
Survey Overview
• The Accounts Payable Optimization Study was
designed to highlight:
– steps accounts payable (AP) departments are
taking to eliminate inefficient paper processes
– the biggest challenges in processing invoices
– solutions AP professionals are considering to drive
higher performance.
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© 2014 Canon Business Process Services, Inc. All rights reserved.
Methodology
• The online survey was presented to several thousand
finance professionals.
• The survey was 22 questions, including some that
could be answered instantly with a single mouse click
and others that were more complex (and likely required
the respondents to retrieve some information).
• Survey respondents were given several weeks to
complete the survey.
• Some 101 finance professionals completed the survey
and 57 respondents answered every question.
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© 2014 Canon Business Process Services, Inc. All rights reserved.
Key Finding #1
• Most organizations still manually handle the
majority of their invoices
– Despite the growth of document imaging and
electronic invoicing, most organizations
(nearly two thirds of respondents) still manually
handle the vast majority of their invoices that
arrive as paper documents, fax documents
or email attachments.
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© 2014 Canon Business Process Services, Inc. All rights reserved.
Key Finding #2
• The adoption of electronic invoicing among suppliers has
a long way to go.
– Nearly two-thirds of respondents indicate that less than
10 percent of their suppliers submit invoices electronically
so that no manual handling is required for input into the
organization’s ERP system.
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© 2014 Canon Business Process Services, Inc. All rights reserved.
Key Finding #3
• Email attachments account for the majority of electronic
invoices received by organizations.
– Nearly two-thirds of survey respondents indicated that their
organization receives the majority of its electronic invoices
as email attachments.
– Since most companies lack the technology to automatically
extract data from email attachments, email attachments
may be the least efficient form of electronic invoicing for buyers.
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© 2014 Canon Business Process Services, Inc. All rights reserved.
Key Finding #4
• Organizations are most interested in outsourcing
invoice imaging and indexing.
– Invoice imaging and indexing is far and away the task
that survey respondents are most interested in
outsourcing – identified by 37 percent of survey
respondents.
– Supplier onboarding, invoice data entry, supplier
inquiries and telephone bill processing are
other AP activities that respondents would be most
interested in outsourcing.
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© 2014 Canon Business Process Services, Inc. All rights reserved.
Key Finding #5
• Automated workflows for invoice approval
and exceptions are a top priority for the
next 12 months
– Considering that survey respondents cited
invoice routing as the activity that caused
their AP department the greatest pain,
it is no surprise that a plurality of respondents
(39 percent) identified automated workflows
for approvals and exceptions as a top
improvement priority for the next 12 months.
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© 2014 Canon Business Process Services, Inc. All rights reserved.
Key Insights
• With so much paper being manually processed and so few
suppliers submitting invoices electronically, how can
AP departments begin to decrease paper usage,
increase processing efficiency and contain costs?
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© 2014 Canon Business Process Services, Inc. All rights reserved.
Key Insight #1: Outsourcing
• One answer is to end the “paper chase” by
outsourcing
– Focus particularly on the “receipt-to-ERP” phase
of invoice processing
– This phase includes receiving paper
(or paper equivalent) invoices via mail, fax and
email attachments and converting the information
into ERP-formatted data.
– This stage also includes prepping, scanning, indexing
and extracting data from the invoices
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© 2014 Canon Business Process Services, Inc. All rights reserved.
Key Insight #2: Automate Invoice Validation
• Many companies outsourcing front-end AP processes may not ask their service
provider to automate “pre-approval validation” activities
– The right service provider can automate procedures driven by business rules that more
quickly and cost-effectively filter, check and prepare invoices for the next workflow
phase
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© 2014 Canon Business Process Services, Inc. All rights reserved.
Key Insight #3: Another Untapped Opportunity
• Besides the receipt-to-ERP and pre-approval validation
phases, there is another potential untapped opportunity
– Consider outsourcing the third major step in AP workflow,
the “approval and exception processing” phase
– Purchase order and non-purchase order line item matching,
approval routing, exception resolution and GL coding
are some activities comprising this phase
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© 2014 Canon Business Process Services, Inc. All rights reserved.
Summing Up
• These three insights clarify how outsourcing can help
AP department end the paper chase, eliminate
manual, low value activities and finally evolve into
automated, high-performance operations.
• Such improvements can help hone a company’s
competitive edge and better prepare it for continued
success in the days ahead.
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© 2014 Canon Business Process Services, Inc. All rights reserved.
Advancing Business Performance to a Higher Level
Thank youTo download the Canon AP
Optimization Study Report:
https://pages.cbps.canon.com/2014_
AP_Optimization_Report.html
© 2014 Canon Business Process Services, Inc. All rights reserved.