Integrating Procurement & AP - Trends, Drivers, & The Role Of Technology

Integrating Procurement & AP

Trends, Drivers, & The Role Of TechnologyAugust 21, 2013

©2013 Coupa Software, Inc.


Henry IjamsManaging DirectorPayStream Advisors, Inc.

Tony WesselsVice PresidentCoupa

Jack MilesCPO EmritusFormer: CIGNA, AIG, CA



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InvoicingExpenses

PAYSTREAM ADVISORSResearch and Advisory Services for Financial Operations:- eProcurement - AP Automation- P2P Peer Benchmarking - Electronic Payments- T&E Expense Management- eBilling & Receivables Management- PayStream INNOVATE Purchase to Pay Summit

www.paystreamadvisors.com

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Session Overview

• State of Procurement• Integrating Procurement and AP• Metrics to Drive Performance• Secrets of successful procurement

management

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PayStream’s eProcurement Survey

• PayStream’s Q1 2013 Electronic Procurement survey of over 150 account payable and procurement professionals at U.S. based enterprises revealed strong opportunity

Key Insights:• Procurement professionals are actively exploring electronic Invoice

solutions with the goals:• Reduced processing costs, increased spend visibility• Increased spend policy compliance and lower prices• improved vendor satisfaction• Reduction in exceptions and discrepancies

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Structure of Procurement Operations

Q: Which organizational structure best describes your procurement function?

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State of Procurement Automation

Q: What Procurement Automation tools do you currently use at your organization?

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What’s Holding You Back?

Q: Why haven’t you adopted eProcurement or Procurement Automation solutions at your organization?

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Pain Points in Procurement

Q: How much pain is experienced within your organization due to each of these Procurement areas? (1 is no pain, 5 is high pain)

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What are the benefits?

Top goals electronic invoicing 21% and electronic payments 22%

Q: What benefits have you gained/expect to gain from your procurement automation?

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Henry To Put In Matching Chart

Electronic Invoice Success

Q: What percentage of your suppliers submit electronic invoices?

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Performance Measurements Lifecycle

Reports

Measurements & Metrics

Benchmarking & Coordinated Goals

Performance Drivers

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Top P2P Performance Drivers

Metric Laggards

Average processing time from invoice receipt to approval

45 days

Average processing costs (combination of paper and electronic)

$15.00

Percentage of self-managed transactions

10%

Percentage of orders with a discrepancy or defect

25%

Percentage of Touch-less Transactions

18%

Mainstream Innovators

23 days 5 days

$6.70 $2.36

20% 60%

16% 4%

40% 75%

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Stage 1

Stage 2

Stage 3

Stage 4

- P2P Leadership has defined P2P Vision- Well defined & Controlled Process-Centralized Procurement & Payables- Defect rates <7%

- Shared Goals & Metrics- Automated Purchases & - Online Catalogs> 50% Touchless Transactions

- Authoring shifted to departments- Automated ordering/fulfillment- 70% electronic transactions - Defect rates <4%

- Highly automated environment- >50% of transactions self-managed- Local control for most services- Defect rates <2%- >75% Touchless

PayStream P2P Maturity Stages

- Order Cycle Times Avg. less than 2 days- Defect rates <5%

PayStream Purchase to Pay Maturity Assessment

Metrics

Touchless

Collaborative

Vision Driven

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Lessons from the Innovators

1. Well-defined goals & visiona. Leadership and senior management buy-inb. Cross-functional alignment and supportc. Clear understanding of the value proposition

2. Technology to Support eProcurement and Purchase-to-Pay Strategyd. Concise objectives of how technology drives achievement of goalse. Multi-year automation roadmapf. Performance Drivers to measure progress

3. Integrated Purchasing Policiesa. Policies are dynamic and relevant b. eProcurement System supports policy communications, alerts and enforcement

4. Development of Strategic Supplier Relationshipsc. Foster long-term relationships with increased visibility to company needs and goalsd. Spend is tracked and consolidated e. Suppliers are treated as a strategic partner and resource

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Define your project

• Develop measurements– Compare to others (Peer comparison is best)

• Idea statements– State the problem– State the objectives & the effect of the project

• Outline your long term goals– Delineate steps between current & future state– What kinds of steps make sense?

• Economically• In terms of your work process

• Start by measuring a few items that create a stimulus for change

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Quick Tips To Keep Up to Date

• Take advantage of free resources like:– Technology Insight Reports PayStream Research Vault– PayStream tools such as the Cost Per Invoice Calculator

• Get involved! PayStream’s 2013 INNOVATE Purchase to Pay Conference is September 16 – 18th, 2013 in Charlotte, NC.– Bonus offer: use the code WEB13 for $50 discount

http://www.paystreamadvisors.com/eResearch/

http://www.paystreamadvisors.com/advisory_services/cost_per_invoice_calculator.cfm


Charlotte, NCSeptember 16-18

Webinar attendee discount code:

WEB13

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