3 Key Differentiators of P2P Top Performers
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The document presents findings from a survey of over 100 shared services professionals regarding digitization in Procure-to-Pay (P2P) processes. It highlights the benefits of automation, revealing that top performers experience lower invoice exceptions and better alignment between finance and procurement, with over 90% invoices under purchase order. Additionally, the document emphasizes the importance of capturing early payment discounts and delivering higher-value services as a strategy for organizations to thrive in a digitized economy.
3 Key Differentiators of P2P Top Performers
- 1. About our respondents Measuring Top Performers More than 1 Million 500,000 – 1 Million Less than 100,000 100,000 – 200,000 200,000 – 500,000 27% 15% 23% 12% 23% What is your company's annual revenue? (in USD) 3Key Differentiatorsof P2P Top Performers INFOGRAPHIC REPORT Which of the following pain points do you have in P2P? Purchase order problems Manual invoice processing Time spent responding to internal inquiries Invoice Exceptions Long approval process Poor master data What are your P2P goals? Straight-through processing Process Standardization PO compliance Streamline procurement e-Invoicing Supplier self- service Early payment discounts Consolidate ERPs How aligned are finance and procurement in your organization? In general, how automated are AP and Procurement? In Payables, what technology do you use? Not aligned - there is no collaboration between Finance and Procurement Rarely aligned - we work separately, but collaborate when needed Somewhat aligned - we collaborate on certain projects Aligned - we share most goals and most KPIs Very aligned - we share same organization, goals, KPIs and leadership 54% 18% 1% 22% 5% Not very auto- mated Mostly manual Very automated Somewhat automated 26% 13%8% 53% AP Not very automated Mostly manual Very automated Somewhat automated 18% 6% 30% 46% Procurement Scanning / OCR Workflow e-Invoicing EDI Supplier Portal Document Management We are mainly manual in AP An end-to-end P2P solution In Procurement, what technology do you use? Workflow e-Catalogs Contract Management tools We are mainly manual in procurement Document management An end-to-end P2P solution Of these top performers, 82% have an automated AP process Benchmark: Top performers have fewer than 10% invoice exceptions. What percentage of invoices have exceptions that need manual intervention? Here are the 3 differentiators of our top performers: Unsure Less than 10% 11- 20% 30- 50% 41- 50% More than 50 % }} } } 65% say automation has improved the service they provide, and the top performers generally have the majority of invoices under purchase order, and Finance and Procurement are organizationally aligned. Benchmark: Top performers have more than 90% of invoices under PO Benchmark: Top performers capture discounts from over 20% of suppliers. What % of invoices are under purchase order? 94% of those with 90%+ PO rates have automated Procurement processes. 0- 30% 31- 50% 51- 70% 71- 90% 90% + 100% of these top performers have automated AP. Are you currently capturing early payment discounts (from supply chain financing, dynamic discounting) Yes, we do, but our suppliers haven’t taken up the discounts Yes, we do, but we capture discounts from less than 20% of our suppliers Yes, we do and we capture discounts from over 20% of our suppliers No, but we are actively looking into it No, it is not something we are considering Do you think automation and digitization has improved the service you provide? No, we are still quite manual and transac- tional No, we don’t think our technology has improved the service we provide Not yet, but we are hoping invest- ments in technology will change this Yes, we are more efficient and focused: Automation enables me and my team are focusing on higher value and strategic projects Yes, we are more efficient: We can do more work with fewer people, but it is still more transac- tional than strategic work 91% of these respondents have finance and procurement aligned. Also 91% have 70%+ invoice under purchase order. 1. Those who automate Respondents who automate AP have lower rates of invoice exceptions and capture early payment discounts, not only reducing costs, but adding value. So who is really benefitting from P2P digitization? 2. Those who drive end-to-end alignment Alignment of goals and KPIs is the crucial factor to ensure you see value from your P2P investments. 3. Those who deliver a higher-value service As automation and robotics increasingly transform the shared services landscape, a business case solely focused on cost-cutting may not secure the future of your organization. Showing that you can drive revenue (capturing discounts) and ensuring compliance in a global economy will be increasingly important. $ $ © sharedserviceslink.com Ltd and Coupa 2017. No copy or visual can be used in part, as a phrase or in whole without the written permission of sharedserviceslink.com Ltd. The concept of this product belongs to sharedserviceslink.com Ltd and cannot be re-created by a third party for the purpose of an event, article, report or any other written product, without written consent made available by sharedserviceslink.com Ltd. For more insight and analysis, watch a webinar where we discuss these findings © sharedserviceslink.com Ltd and Coupa 2017. No copy or visual can be used in part, as a phrase or in whole without the written permission of sharedserviceslink.com Ltd. The concept of this product belongs to sharedserviceslink.com Ltd and cannot be re-created by a third party for the purpose of an event, article, report or any other written product, without written consent made available by sharedserviceslink.com Ltd. Research brought to you by: sharedserviceslink and Coupa conducted a survey with 100 shared services professionals to explore and understand the benefits of digitization in P2P and the secrets of top performers. Respondents are from large companies, 76% have over $1BN annual revenue and 85% process over 100,000 invoices annually. 73% 53% 51% 48% 46% 43% 85% 59% 57% 49% 49% 47% 25% 23% 53% 52% 40% 35% 25% 24% 72% 71% 49% 45% 43% 39% 26% 23% 8% 12% 25% 33% 14% 22% 13% 10% 34% 31% 12% 2% 27% 39% 21% 11% 5% 8% 22% 13% 52%