Manufacturing Co ROI

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Manufacturing CoThe Case for Supplier Payment Operations

AutomationPrepared on: 03/03/2017

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What We Heard

• Increasing costs due to inefficient invoice processing• Wasted time on payment reconciliation across systems• Manual onboarding detracts from analysis and strategy• Higher costs due to rejected payments and errors• Time-intensive processes can’t keep pace with growth in

Suppliers and invoices• Poor controls and compliance affect audits and increase risk• Increasing calls due to poor visibility into payment statuses


One System to Manage Global Supplier Payment Operations

Suppliers

Payer

The Desired State

Domestic & Global Remittance

SuppliersVetting

Tax FormCollection & Validation

SuppliersRegistration

Payment Reconciliation

1099/1042-S Preparation

Issue Handling & Resolution

Suppliers Communications

PaymentInstructions/Approvals

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Manufacturing CoROI Analysis


Total Manual Hours Spent per Year

8,253 hrs

Blacklist / OFAC Screening: $23,077Payment Execution: $76,154Suppliers Communication: $34,231

Suppliers Onboarding: $3,173Invoice Processing: $53,846Payment Approval: $46,154

Payment Error Fees: $111,738Payment Reconciliation: $69,2311099/1042-2 Reporting: $11,538


Savings Analysis Manufacturing Co +

Agility Focus on cash flow analysis and

optimizing productivity Expand to other markets, subsidiaries,

etc. more efficiently

Scalability Eliminate 80% of current AP workload Don’t need to staff up AP as you grow

globally

Compliance Avoid compliance penalties Strengthen tax, regulatory, and

financial controls

Benefits

ROI ImprovementNet Savings with Tipalti Cost Included

Year 1

Year 2

Year 3

12.4x

17.6x

22.7x

3-Year ROINet Savings With Tipalti Cost Included

$1,281,950Payback PeriodImplementation Time Included

0.00 months

Breakeven Analysis


Area Business Benefit

Self-Service Onboarding Remove administrative overhead from strategic finance professionals Improve data quality Eliminate payment error costs

Digital Tax Form Collection Protect the company against tax non-compliance and associated cost Remove administrative overhead from strategic finance professionals Ensure you are only paying legitimate suppliers

Invoice Processing Reduce likelihood of costly human errors with OCR Reduce paper invoices by 40%+

OFAC & AML Checks Protect the company against non-compliance Protect from fines and penalties

Mass Global Remittance Execute effectively on international growth aspirations Enterprise-grade financial controls Minimize or eliminate checks (leading source of fraud)

Proactive Communication Minimize administration of valued staff Provide transparency around payments to Suppliers

Payment Reconciliation Accelerate financial close Improve cash forecasting

Foundation to scale the business while maintaining a lean finance department Minimize risk exposure to the company Focus finance staff on strategic initiatives

Tipalti’s Impact to the CFO

8

Solving Partner Payment Operations

99%+ Retention • $2.75B+ in Transactions Managed Annually • 1.5M+ Payees

Sales

Manufacturing Co ROI