Blast Off! How to get your AP Automa5on Project off the Ground 5/24/12 1

Transcription

1 Blast Off! How to get your AP Automa5on Project off the Ground 5/24/12 1 1

2 Agenda Introduc5ons What are You Seeking to Fix and Why? Automa5on Choices Payments, einvoice, Workflow Automa5on Op5ons Cloud or Licensed Selec5ng the Right Technology Provider 5/24/12 2

3 About PayStream PayStream Advisors is a provider of independent research and automa5on assessments for financial automa5on technology to business leaders in finance and procurement. Financial Automa-on Architects 1 5/24/12 3

4 We re Swimming in Paper We don t have the time to implement something new even if it is the right thing to do. - Susan, AP Manager Fortune 1000 Manufacturer 78 percent of business to business invoices s5ll involve paper processing Paper is killing AP produc5vity Paper limits AP effec5veness What are you going to do about it? 5/24/12 4

5 The AP Process Today And Tomorrow The Current AP Process The Future AP Process Working Capital v Data Entry v Reconcilia5on v Risk v Did we account for it properly? v What did we buy? v When is the invoice due? v When should we pay? v How should we pay? v Why did we buy that? 5/24/12 5

6 Market adop5on rate: 46% 80% 70% 60% 50% 40% 30% 20% 10% 0% US AP Automa5on Adop5on Rate by Industry Below average adop5on *Selected industry with at least 10 responses Automation adoption rates by company size have been estimated based on PayStream s surveys on Imaging automation, einvoicing and epayments with total number of response of more than 1,000. 5/24/12 6

7 Adoption is on the Rise AP automa5on con5nues to increase ( ): Twenty- two percent increase in Purchasing Cards Thirteen percent increase in e- Payments Twelve percent increase in Automated Workflow Twelve percent increase in OCR/Automated Data Capture Thirteen percent increase in Front- End Imaging 5/24/12 7 7

8 North American P2P Industry is highly Fragmented EDI Networks AP Automa5on Electronic Invoice eprocurement epayment Banks 5/24/12 8

9 AP Automation AP AutomaAon Invoice & Payment AutomaAon Paper Invoice Management Matching & Workflow Electronic Invoicing epayments OCR/Data Capture Invoice Document Management PO Matching & ERP Integra5on einvoicing Networks* * Includes PO transmission ACH & P- Card Outsourced Document Conversion Approval Workflow EDI Invoicing Discoun5ng & SCF 5/24/12 9 9

10 PayStream Innovation Lifecycle Organiza5ons are in varying stages of AP automa5on Introduc5on Growth Maturity Decline PayStream Advisors 9 5/24/12 10

11 Tracking AP Metrics Metric Laggards Mainstream Innovators Average processing 5me from invoice receipt to approval Average processing costs (combina5on of paper and electronic) Percentage of invoices received electronically Percentage of invoices with discrepancies 45 days 23 days 5 days $22.75 $13.70 $2.36 3% 9% 32% 25% 16% 4% Percentage of discounts captured 18% 40% 75% 5/24/12 11

12 How to Begin Best PracAces Do internal work first Don t issue blind RFI/RFPs Have a qualifying mee5ng and/or call with poten5al suppliers Be willing to share your vision of success Number one barrier to adop5on is the belief that current process works 5/24/12 12

13 The Foundation Assess where you are today. Consultants call this a current state assessment Benchmarking can help Iden5fy where you want to be. Are you centralized? Iden5fy what technology fits your needs best. Define the project. Involve the right players (procurement, IT, finance) Jus5fy the investment. 5/24/12 13

14 Assessing where you are Today What are your current costs? You need to understand your current cost of doing business Document the facts & figures (metrics) Determine the right project(s) for you Help you priori5ze those projects Build your case Learn how to communicate AP to the Steering Commiqee Execu5ves may not understand what you do but they understand sta5s5cs Measure the success of your changes What do the Stakeholders care about? Know your audience 5/24/12 14

15 Functional Scope to Communicate with Vendors Invoice to Pay Automation Requirements Requisitions + Order Management Document Capture & Data Extraction Approval Workflow einvoice Payment Management Vendor Self Service Purchase Order Transmission PO Confirmation Vendor Communication Scan Invoices Pre-validation Header and line item extraction Image Archival & Retrieval Automated Matching Invoice Submission Approval Workflow Exception Management einvoice Portal Onboard high volume supplier Supplier Collaboration Electronic Invoice Receipt Electronic Remittance Advice to vendors Transaction Status to Vendors Dynamic Discounting Vendor Registration Bank Account Validation Transaction Status to Vendors 5/24/12 15

16 Internal Change Best PracAces Iden5fy all organiza5onal and procedural changes Communicate internally what s changing and the benefit to the organiza5on Communicate externally to vendors before, during and aser the change Make doing things the right way easy Include some of your tough customers early on Communicate twice as much as you think is adequate 5/24/12 16

17 Involve Suppliers Keep Suppliers in the loop from the beginning Even as you are evalua5ng solu5ons, contact your strategic suppliers to gauge their interest and their ability to come onboard Leverage the exper5se and best prac5ces provided by the technology provider Supplier segmenta5on Ac5va5on campaigns 5/24/

18 Realistic ROI Your Numbers + Our Calculator = Massive Savings Technology Solution Provider Best PracAces Understand your own internal process for getng a project approved, including the required ROI metrics. Internally benchmark your current process to get a first pass at your cost and throughput Highlight hard and sos cost reduc5ons. 5/24/12 18

19 Best Practices Be realis5c Don t automate a bad process Automa5on will not solve all your problems Set reasonable expecta5ons As issues arise, measure them, document them, and put a plan in place to address them in priority order 5/24/12 19

20 End- to- End Electronic Invoicing Only Key Players in the North American AP Automa5on Electronic Market Payments Dynamic DiscounAng and SCF Ariba OB10 SunGard Taulia ADP Basware JPM Chase Order to Pay Direct Commerce ipayables Syncada Direct Insite CiA GHX Sterling Commerce GXS Coupa Transcepta BoOomline Technologies/ Paymode American Express Syncada MasterCard epayments Gateway CiA Bank of America Wells Fargo Pollenware Prime Revenue The Receivables Exchange CiA JPM Chase BMO Direct Commerce Direct Insite BoOomline Technologies PNC Bank ADP PNC Bank Ariba OpenText Kofax 5/24/ Market Participants and Solution Strength

21 Automation Options in AP Technology Implementa5on Licensed Sosware Sosware solu5ons that are implemented within the company s firewall Hosted and maintained by the company resources Sosware- as- a- Service (SaaS) - Cloud System is hosted on the solu5on provider s end not within the firewall Maintenance is handled by the technology provider True SaaS/Cloud is Mul5- tenant Business Process Outsourcing Service provider takes on the en5re process that is being handled by your staff Areas to consider for BPO Scanning and Data Entry Check Prin5ng and Mailing Expense Report Audi5ng U5lity / Freight Payments Post Payment Audit 5/24/

22 Sec5ons for RFP RFI Structure Outsourced Scanning & Data Entry Capture Document Imaging Data Extraction Support for mail processing and imaging of invoices in different formats Use tools or labor for data entry, indexing and validation against CIBC vendor/approver data Pre-Validation Content Management Capture data mapping and preparation of invoices Centralized repository to store invoice images and information, ability to search and retrieve Matching & Workflow Invoice Matching Approval Workflow Exception Handling Two-way or three-way matching based on pre-defined criteria and tolerance levels Workflow configuration and support for multiple levels of approval Exception workflow and interface to aid in the dispute resolution process einvoicing Network Supplier Network Supplier On-boarding Shared network supporting many-to-many relations between buyers and suppliers Services provided around supplier recruitment vendor segmentation and activation campaigns E-Invoicing Dynamic Discounting Allow suppliers to submit electronic invoices through multiple methods Dynamic discounting capabilities and the ability to recruit suppliers to enroll in discounting 5/24/12 22

23 Implementa5on Roadmap Quick Hits/Gems Development & Rollout 3 6 months Quick Hit Porvolio Items: Conduct Spend Opportunity Assessment to iden5fy opportuni5es. Form Steering Commiqee, develop goals and success metrics. Develop new Policies and Procedures that address the automated requisi5on/purchasing process. Document imaging of PO documents (SharePoint or LiveLink). Work on detailed design for E- Procurement System 5/24/12 23 Develop RFP for E- Procurement System Porvolio Items: 6-12 Months Begin tracking success metrics. E- invoice Pilot PO: Invoices/NE&O (AP). Implement E- Procurement. erequisi5ons pilot. Change management, communica5on, & training. Porvolio Items: Supplier Self- Service (AP) Pilot catalog punch- out to validate benefits. Repor5ng & Analy5cs. Discount Management (AP) 23

24 Maximizing your Investment in Automa5on Plan your Implementa5on Thoroughly Today s systems are powerful, so design for the future Ensure sponsorship of the program at appropriate levels Ease employees/users into adop5on start with the basics and introduce new features and func5ons over 5me Gaining User Acceptance Change management cannot be an aserthought to implementa5on While planning for implementa5on and roll- out, also plan on how you will bring employees on- board Communicate to employees how the system will improve their experience Managing Supplier Behavior Enforcement of policies through rewards for using system (faster payment) Educa5on on how it helps the supplier 5/24/12 24

25 Conclusion Choosing the right P2P Automa5on solu5on can bring value to your organiza5on for years to come. Complete a current statement assessment before communica5ng with providers Leverage peers Design high level future state Engage providers to help finalize future state 5/24/12 25