Embed Size (px)
DESCRIPTION
Despite optimistic predictions over the last four decades about “going paperless,” automating document-intensive processes, such as accounts payable, has been an elusive goal for even forward-thinking companies. In this webinar, you’ll discover the research and strategy that went into developing the Paperless Office Maturity Model for Accounts Payable. Created by the Institute of Financial Operations and Perceptive Software, this innovative diagnostic tool presents the pathway to automation in five levels that clearly describe the progression from paper-based methods to electronic processing that eliminates nearly all manual tasks. Statistics gleaned from organizations that have used the model will also be presented, offering a clear picture of where AP automation is headed. http://www.paperlessofficematurity.com/ap?utm_campaign=ALL_BO_Acctng_POMM_AP&utm_medium=slideshare&utm_source=POMM_AP
Citation preview
Charles Kaplan Mark BrousseauPerceptive Software Brousseau & Associates
A Practical Guide to the 5 Levels of
Accounts Payable Automation
What percentage of your invoices are paper-based?
More than 75 percent
51 percent to 75 percent
26 percent to 50 percent
11 percent to 25 percent
Less than 10 percent
Poll Question No. 1
71% of organizations say that at least half of their invoices are paper-based.
Source: 2013 IFO AP Automation Study
52% of business-to-business payments are made via paper check.
Source: 2013 IFO AP Automation Study
The Problems with Paper
12%
13%
19%
39%
44%
45%
0% 10% 20% 30% 40% 50%
Difficulty handling high amounts of supplierinquiries
Risk of payment-related fraud
Inability to effectively manage cash accordingto current business needs
Difficulty finding or managing paper-baseddocuments
Corporate directives to lower costs
Lack of visibility into invoices and APdocuments
Percentage of Respondents, n = 188
Source: 2012 Aberdeen Group
2
3
4
5
1
Level 149%
Level 224%
Level 319%
Level 44%
Level 53%
Level Breakdown
2
4
3
5
1
Level 1: Paper-based
Entirely paper-based invoice receipt
Manual indexing and storage in file cabinets
Manual data capture
Manual approval workflow
Inquiries handled by phone and email
Ad hoc, manual reporting
Decentralized, disconnected environment
High cost, transaction-focused
Percentage of Invoices Received Electronically
0%1%
1-10%16%
11-20%6%
21-30%19%
31-40%12%
41-50%9%
51-60%9%
61-70%4%
71-80%10%
81-90%4%
91-95%6%
96-100%1%
More than half of the respondents
receive the majority of their
invoices as paper.
64%
2
1
Level 2: Image-enabled
Paper-based invoice receipt with front- or back-end imaging
Manual or partial auto-indexing
Physical and electronic storage
Manual capture from paper or image
Manual approval workflow
Inquiries handled by phone and email
Manual reporting
Partially centralized environment
First step towardpaperless office
% of Invoices Scanned: Front or Back-End
0% 1-10% 11-20%
21-30%
31-40%
41-50%
51-60%
61-70%
71-80%
81-90%
91-99%
100%0
5
10
15
20
25
30
35
40
% paper invoices front-end scanned
0% 1-10% 11-20% 21-30% 31-40% 41-50% 71-80% 81-90% 100%0
5
10
15
20
25
30
35
40
% paper invoices back-end scanned
2
1
Level 3: Workflow-driven
Invoice receipt: front-end imaging and some EDI
Auto-indexing, ECM
Minimal physical storage
Use of OCR/ICR
Automated approval workflow
Image portal available for inquiries
Automated reporting
Centralized, connected
Bridge to electronicinvoicing
3
Automated Reporting and Discount Management
Yes25%
No75%
Yes25%
No75%
Do you use automated reporting tools?
Do you use automated tools for discount management?
Does your organization use automated workflow for approvals and exceptions?
Yes
No, but planning to within 6 months
No, but planning to within 12 months
No, but planning to within 24 months
No, and we have no plans to do so
Poll Question No. 2
Saving $1 million annually by streamlined payment cycle
The Company
Privately held
1,300 employees
50 office locations across Canada and US
Real estate advisory and services firm
The Challenges
Control and standardize AP process across 50 office locations
Streamline payment cycle and improve visibility
Reduce redundancy and waste of paper-based process
Increase automation to handle 1,000 invoices per day
Case Example: Bentall Kennedy
Automation Highlights:
• Improved accuracy and compliance
• Saves more than $1 million annually
• Provides instant, anytime, anywhere access to documents and a detailed audit trail
• Accelerates payment cycle and helps capture of early payment discounts
2
1
Level 4: E-enabled
Invoice receipt: imaging, EDI, e-invoicing, email (minimal paper)
Auto-indexing, ECM
Use of intelligent data capture, PO line-pairing
Automated approval workflow, routing and dispute management
Self-service portal for inquiries
Automated, integrated reporting
Shared services
Significant steps towards STP
3
4
Winner: 2012 Huntington Innovation Award
A/P Statistics and Trends
~ 5M invoices annually ~ $18B in disbursements annually Global scope encompasses N. America and EMEA Cost per invoice $1.71
May ’04 May ’07 May ’10 May ’11 May ‘12 May ’13
Headcount 105 88 64 61 53 52
Defect Rates 11.3 % 10.1% 10.1% 10.7% 8.6% 6.2%
Invoices Per FTE(annualized)
38k 59k 64k 69k 83k 86k
Electronic Payments
15% 32% 48% 49% 53% 54%
Electronic Invoicing 86% 89% 92% 92% 96% 97%
Invoices POT (HOT) 67% 82% 91% 92% 95% 95%
Progress Since Go-Live ...
© 2013 Perceptive Software, LLC. All rights reserved.
Jan-11
Jan-11
Feb-11
Mar-11
Apr-11
Apr-11
May-11
May-11
Jun-11Jul-1
1Jul-1
1
Aug-11
Sep-11
Sep-11
Oct-11
Nov-11
Nov-11
Dec-11Jan
-12Jan
-12
Feb-12
Mar-12
Mar-12
Apr-12
May-12
May-12
Jun-12Jul-1
2Jul-1
2
Aug-12
Sep-12
Sep-12
Oct-12
Nov-12
Nov-12
Dec-12
Dec-12Jan
-13
Feb-13
Mar-13
Mar-13
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
AP Paper Invoice Volume
Total Paper Linear (Total Paper) Manually Posted Linear (Manually Posted)
Intelligent Capture Go-Live
Perceptive Intelligent Cap-ture:60% + of paper invoices are now Auto Posting
Winner: 2013 Huntington Innovation Award
The Company
2012 Sales – $6.3 billion
8,200 employees
Cable, security solutions, electronic wire, fasteners
Operating in 260 cities in 50 countries
The Challenges
1.8 million invoices annually
Single solution must interface with multiple backend systems
Ability to support rollout to North America, Latin America, AsiaPac, EMEA
The Results
95% of all keystrokes eliminated
Email input has increased 59%
Paper use is down 38%
Case Example: Anixter
Automation Highlights:
• 92% STP for PO invoices
• 74% STP for freight invoices
• 98% of expense utilities
Does your organization use a supplier portal for self-service invoice status?
Yes
No, but planning to within 6 months
No, but planning to within 12 months
No, but planning to within 24 months
No, and no plans to do so
Poll Question No. 3
2
1
Level 5: Paper-free
Fully electronic invoice receipt
Auto-indexing, ECM
Touch-free data capture
Exception-based approval workflow
Self-service portal for inquiries, online dispute resolution
Real-time, predictive, integrated reporting
Shared services, harmonized
Analytics-driven,value-focused
3
4
5
Electronic Posting with No Manual Intervention
0%61%
1-10%12%
11-20%4%
21-30%7%
31-40%1%
41-50%1%
51-60%3%
61-70%1%
71-80%3%
81-90%1%
91-99%3%
Best-in-class companies
electronically post 70%+ of their invoices
without manual intervention.
-- Gartner
A Roadmap to Paperless AP
© 2013 Perceptive Software, LLC. All rights reserved.
2
3
4
5
1
Paperless AP is a journey, not an destination
Paper remains a “fact of business” for AP organizations
Reducing focus on transactions allows focus on value
Knowing where you are helps you plot where to go next
Technology Excellence in Healthcare Supply Chain
Recognition for Excellence
Charles Kaplan Mark Brousseau
Perceptive Software Brousseau & Associates
[email protected] [email protected]
Questions
www.paperlessofficematurity.com
