Gauging the Maturity of your AP Department
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The document outlines a webinar focused on gauging the maturity of accounts payable (AP) departments and emphasizes the importance of process improvement and automation. It discusses the evolution of the AP professional, top challenges, goals, and the stages of e-invoicing maturity models. A case study is included, demonstrating the transition of a private insurer's AP processes from manual to best-in-class practices, emphasizing the need for enhanced technology and workflows.
Gauging the Maturity of your AP Department
- 1. Access an on-demand webinar on this topic here: https://zyc.us/2rkrdwv Gauging the Maturity of your AP Department: The Linchpin to AP Process Improvement
- 2. Gauging the Maturity of your AP Department The Linchpin to AP Process Improvement
- 3. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Today’s Presenter Richard Waugh VP Corporate Development, Zycus Inc. As Vice President for Corporate Development, Richard leads strategic initiatives in the areas of new product introduction, market development, thought leadership, analyst relations, and strategic partner development programs. Richard has an extensive background in B2B E-Commerce. He helped launch GE's Trading Process Network (TPN), the first on-line Marketplace for Sourcing and Procurement. He was also Co-Founder of B2eMarkets, one of the first SaaS (Software as a Service) Sourcing Suite providers and later covered the Supply Management market as an Industry Analyst for the Aberdeen Group .
- 4. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Agenda Your AP Department’s Level of Automation • AP Department And AP Professional’s Position in AP Evolution Curve Top AP Challenges faced Top AP Goals Capabilities AP Needs to Achieve “Next Level” E-Invoicing Maturity Models – Stages and Parameters E-Invoicing Maturity Benchmarks – Top Performer Metrics Case Study - Private Insurer’s Journey According to E-invoicing Maturity Model – From Nascent to Best-in-Class
- 5. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Your AP Department’s Level of Automation High 23% Medium 48% Low 29% Source: Institute of Finance & Management
- 6. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay AP Department And AP Professionals Position in AP Evolution Curve Corporate Transaction Processor in the “Back Office” AP Clerk to “Cost Impactor” AP Professional and Analyst Why: Manual Processes Driven by Disconnected Systems Why: Focus on Cost Savings, AP/P2P Automation, and P-Card Rebates Why: Automated Processes, the Accuracy of Data, and Shorter Financial Closing Times Allow a Renewed Focus on Analytics The Evolution of the AP Professional AP Evolution Curve
- 7. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Top AP Challenges 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Days Payable Outstanding Spend analysis Payables visibility Cash management Tax/regulatory issues Internal/external communications Reducing costs Reducing paper On-time payments Improving processes Source: IOFM Key Performance Indicators Study
- 8. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Goals and Objectives AP Wants To Achieve
- 9. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Capabilities AP Teams Need to boost themselves to the “Next Level”
- 10. E-INVOICING MATURITY MODELS Stages and Parameters Access an on-demand webinar on this topic here: https://zyc.us/2rkrdwv
- 11. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay E-Invoicing Maturity Models – Parameters and Stages Nascent Evolving Mainstream Best in class Current State of AP processes 100% manual Current organizational dynamics or structure Invoice collection and indexing outsourced to an external party Objectives of this stage The prime goal of the stage is to keep the payables moving and not strategy focused Technology Environment or Level of current automation The technology landscape in this stage is minimal and restricted to the use of ERP with scanning systems in place Metrics Tracking Metrics pertaining to both operational and strategic efficiency are not recorded or tracked Discounting Capture and Payment Lack of spend visibility leads to neither discount capture nor payment tracking Supplier Relationship Poor, due to insufficiencies in the system
- 12. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay E-Invoicing Maturity Models – Parameters and Stages Nascent Evolving Mainstream Best in class Current State of AP processes 80% manual Current organizational dynamics or structure Dependency on PDF format invoice, organization partners with OCR technology vendor Objectives of this stage Increasing invoice data accuracy by capture Technology Environment or Level of current automation OCR system integrated with the ERP Metrics Tracking Metrics pertaining to data capture efficiency and accuracy may be tracked Discounting Capture and Payment Little or no focus to transforming the system to a financial gain capturing ecosystem Supplier Relationship Not much improved, interpersonal driven
- 13. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay E-Invoicing Maturity Models – Parameters and Stages Nascent Evolving Mainstream Best in class Current State of AP processes 50% manual Current organizational dynamics or structure To increase overall operational efficiency and more importance to supplier enablement Objectives of this stage To save invoice processing cost and shorten payment cycle by setting up automated invoice approval workflows Technology Environment or Level of current automation OCR system integrated with an ERP along with workflow systems and invoice matching systems Metrics Tracking Metrics are focussed on both operational and strategic aspects Discounting Capture and Payment Shortened payment cycles with more savings due to better process efficiencies Supplier Relationship Supplier relationship at this level has evolved to be more strategic
- 14. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay E-Invoicing Maturity Models – Parameters and Stages Nascent Evolving Mainstream Best in class Current State of AP processes Touchless processing Current organizational dynamics or structure The organizational dynamics have transformed from fragmented to more strategic and integrated Objectives of this stage To derive maximum strategic value from procurement to pay (P2P) processes in the form of financial savings Technology Environment or Level of current automation Integrated ecosystem of intercommunicating modules including contract management system, procurement systems, E-invoicing software and ERP system Metrics Tracking Metrics around the amount of savings, discounted invoice, contract terms savings captured are actively tracked Discounting Capture and Payment Discount capture efficiency both at invoice and contract level increases Supplier Relationship Supplier relationship is leveraged maximum at this stage
- 15. E-INVOICING MATURITY BENCHMARKS Distinguishing Top Performers from the Overall Peer Group Access an on-demand webinar on this topic here: https://zyc.us/2rkrdwv
- 16. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Top Performers Leveraging Digital Invoicing/Payment Process Source: Hackett Group P2P Performance Study 2017
- 17. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay AP Automation Starts with Digital Image, Extends to Approvals Source: Hackett Group P2P Performance Study 2017
- 18. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Top Performers Utilizing Advanced Connectivity Source: Hackett Group P2P Performance Study 2017
- 19. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Top Performers Process Invoices 33-40% Faster Source: Hackett Group P2P Performance Study 2017
- 20. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Top Performers: Nearly 1.5X Productivity and >50% Lower Cost Source: Hackett Group P2P Performance Study 2017
- 21. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Best Practice: Align Pay Process to Balance Efficiency, Control Source: Hackett Group P2P Performance Study 2017 Source: Hackett Group P2P Performance Study 2017
- 22. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay AP Automation Boosts 1st Pass Matches, Lowers Discrepancies Source: Hackett Group P2P Performance Study 2017
- 23. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Top Performers Using Self-Service Portals to Resolve Inquiries Source: Hackett Group P2P Performance Study 2017
- 24. CASE STUDY Private Insurer’s Journey According to E-invoicing Maturity Model – From Nascent to Best-in-Class Access an on-demand webinar on this topic here: https://zyc.us/2rkrdwv
- 25. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Challenges/Need faced by AP SAP (ERP) used for invoice workflow processing and payments, however has a lot of limitations AP team had to do extensive manual work to send, receive, archive invoices and managing approval processes No single source of truth for invoice and supplier data Ad-hoc supplier on-boarding process and incomplete supplier details posing serious supplier risk
- 26. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Solution Flexibility in managing workflows due to configurable and recurring workflows Intelligent cloud OCR to receive invoice data from any source. Robust matching and efficient exception handling with strong global compliance capabilities. Real time data capture and updation Increased savings due to Dynamic Discounting Supplier on-boarding and enablement through the Supplier Portal
- 27. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Results ResultsCrosses 80% supplier adoption in less than a year!
- 28. Need more insights? Access an on-demand webinar on this topic here: https://zyc.us/2rkrdwv Follow us on social media for more updates! Twitter | LinkedIn | Google+ | Xing
- 29. +1 866 563 9219 info@zycus.com www.zycus.com Thank You