Best Methods for Invoice Capture

Transcription

1 Best Methods for Invoice Capture Jessica Staley Principal Program Manager, Concur

2 Agenda Understand the landscape Explore methods for invoice capture E-Invoices OCR Technology Managed Services Success Stories case studies Evaluate and act

3 How does your organization receive invoices? Concur Copyright 2010

4 Source: PayStream Advisors einvoicing Adoption Benchmarking Report 2010 Concur Copyright 2010 Paper Still Rules Invoice Types Used Q survey of 275 A/P and Procurement Professionals

5 U.S. Corporations In Varying Stages of A/P Automation Introduc5on Growth Maturity Decline Concur Copyright 2010

6 Electronic Options Invoice Dollar Amount EDI/ERS Paper P-Card High Volume Suppliers Low Volume Suppliers

7 When it comes to invoice capture Where do I start? E-Invoices Supplier Network Direct from Suppliers Eliminate The Paper Optical Character Recognition (OCR) Technology Transform The Paper Image Capture Services Outsource The Paper

8 E-Invoices Eliminate The Paper

9 Concur Copyright 2008 The Ultimate Dream: E-Invoices Electronic transaction: billing information sent to ERP or EIPP system Types: EDI, XML, Supplier Network Benefits: Completely eliminates paper, faster payments to vendors Challenges: Costly setup, vendor adoption

10 Source: Gartner, Use Supplier E-Invoicing to Help Optimize Operating Costs, March 24, 2009 Concur Copyright 2010 Value of E-Invoices Gartner recently published several case studies where e-invoicing has: Reduced operating costs between 70-90% Increased straight-through processing between % by reducing exceptions Improved cycle time between 2-15 days Improved discount capture between $200K-$10M annually

11 The Hackett Group, December 2008 Concur Copyright 2010 Business Case For Your Suppliers E-Invoices (Network) E-Invoices (Portals) High Volume Yes No Medium Volume No No Low Volume No Yes

12 Optical Character Recognition (OCR) Transform The Paper

13 Imaging Solutions Concur Copyright 2010

14 Source: PayStream Advisors Optical Character Recognition 2008 Concur Copyright 2010 Optical Character Recognition (OCR) Capture: Recognizes printed text and turns it into digital, actionable data Types: OCR, ICR Benefits: Decreases time to input invoice data into A/P automation solution Challenges: Still requires resources to scan invoices and verify data

15 Source: PayStream Advisors Optical Character Recognition 2008 Concur Copyright 2010 Front-End Scanning & OCR Process

16 Client Story: Multi-National Enterprise Large Consumer Products Company 10 global locations 2 Shared Service Centers (US / Europe) 20,000 employees worldwide Process ~7,000 invoices/month using A/P automation and OCR technology

17 Client Story Elizabeth Arden Before Decentralized processing After Consolidated to two SSC (US and Geneva) 5 FTEs performing capture (US) 2.5 FTEs (same volume with half staff) Little time for core initiatives Unclear metrics Staff free for p-card, analytics Goal: 30k invoices / year / FTE Nuggets of Wisdom Has used OCR for 12 years at prior companies technology has improved OCR more cost-effective than EDI, especially multi-page Takes time and knowledge ramp 3 6 months for internal training, vendor stabilization If you can stomach the ramp, the results are amazing

18 Source: PayStream Advisors Optical Character Recognition 2008 Concur Copyright 2010 Selecting an OCR Solution What volume of scanning do you anticipate? Will a dedicated resource be needed? Where will the data be stored? How will it be accessed? How will you track cost and process improvements? Will scanning be done at a central location or remote locations? Do you purchase the software outright or pay per transaction? How many users need to be supported on the solution? Do you need multiple licenses? How are upgrades handled? How much of an initial investment is needed to get started?

19 Invoice Capture Services Outsource The Paper

20 Accounts Payable Outsourcing (APO) Universe Various outsourcing options are available for streamlining and optimizing the receipt to pay process

21 Focusing On Administrative Tasks Invoice Receipt & Imaging These are administrative tasks These are low-value add tasks Allows A/P staff to focus on more mission-critical items

22 Take imaging to the next level Invoice Capture Services Mailroom Service Document Capture Receive, open and sort invoices Scan invoice and verify image Workflow Coding Route to employees Enter and verify fields

23 Your Organization Wins Let experts handle low-value A/P tasks Let A/P focus on more strategic tasks Decreases time to get invoices into approval workflow Improve efficiency and productivity Reduce Total Cost of Ownership (scanners, OCR) Helps you centralize your invoice management process

24 Your Suppliers Win, Too Little change management required No additional costs Reduces late payments Easier to obtain payment status information Improve vendor relations Increase speed to payment

25 Client Story Finance Company RiskMetrics Group 20 global offices 1,200+ employees worldwide Spun out of JP Morgan in 1998 Use A/P automation in conjunction with an Invoice Capture Service Process ~1700 invoices/month

26 Client Story RiskMetrics Before Paper Nightmare Growth was scary Paper Copies routed Accuracy: manual entry mistakes Receipt to Capture Cycle 5 days Efficiency: 2 staff After Paper-free Growth was seamless Digital: Transparency to all Higher accuracy (AP at ease) Usually same day Doubled company, same staff

27 Evaluate and Act Concur Copyright 2010

28 Source: PayStream Advisors einvoicing Benchmark 2010 Concur Copyright 2010 Adoption of Technology By Company Size

29 Summary Hard-copy invoices will be a reality for the next 5-10 years and solutions will be needed to capture this information and get it into the workflow process --Gartner, EIPP Can Improve Finance and Purchasing Management, Dec Find a solution which allows for multiple methods of invoice capture

30 Benchmark: Paper Invoice Quotient (PIQ) Evaluate the efficiency of your A/P processing environment, through Cycle Time Measure your organization s Dependency on Paper in A/P

31 Use PIQ to Drive Change Paper Dependency Divided by Invoice Cycle Time

32 Use PIQ to Drive Change % Electronic Invoices (e-invoice, EDI, p-card) Divided by Avg. # approval days (from invoice date to final approval) Example 1 % Electronic Invoices 10 Example 2 24 Example 3 40 Approval Time PIQ 0.4 Laggard 1.0 Mainstream 2.9 *Innovator*

33 Build a Business Case Look under the covers for all costs Initial deployment costs All tasks in process Ongoing costs Opportunity Costs: what else could resources do? Enlist Vendor Partners to Help

34 Summary E-invoices: completely eliminate paper but have adoption challenges OCR technology: advantage for large companies that want to keep invoice scanning in-house Outsourcing: capture services avoid vendor adoption challenges; suit both large and small businesses Paper isn t going away! Target multiple methods of capture Benchmark Build your business case

35 Ques5ons?