how the world’s largest airlines capitalize on ap automation presented by special guest: joni...
TRANSCRIPT
How the World’s Largest Airlines Capitalize on AP Automation
Presented By
Special Guest:
Joni Geurts – AP Manager JetBlue Airways
Ronda Head – AP Manager Delta Air Lines
About iPayables
iPayables, founded 1999, creates invoice and payment platform.
Success based on solid technology (US Patent 6,826,542, others pending) and high service levels.
Manages Invoices for over 68,000 active users from 150 countries
33,781,669,971 invoices in the past 12 months.
Processed over $4,000,000,000 worth of invoices and over $380,000,000 worth of P-Card in 2012
Network:
19,974 Buyers
71,230 Suppliers
40,966 electronic
30,264 imaged
The Technology Platform
Invoice Receipt e-invoice Imaged invoice File load
Approval Processing Workflow Approval Purchase Order
Matching Dispute Resolution
Payment Processing
ACH & Early Payment P-card Check
Reporting/Reconciliation
Status Review Dashboards Remittance
Invoice Capture
Suppliers Enter or Upload e-invoices (Paper invoices are converted to electronic).
Invoices are automatically routed based on your business rules (workflow).
Inquiry, Dispute Resolution eliminate payables involvement.
Discount Capture
Example of Discount Capture
Current Annual Discount Capture
Expected Annual Total Discount Capture
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
Discount CaptureMonthly Spend 10,000,000 Current Discount Capture 40,000$ Current Lost Discounts (Auto-Slope Target) 10,000$ Required Discount APR 32%Average Days Paid Early 20 Average Discount 1.75%Expected Participation in Early Payment 2%
Recovered Lost Discounts 10,000$ Expected Monthly Discount Amount for Early Payment 3,506.85
Annual Discount Gain for Recovered Lost Discounts 120,000$ Annual Discount Gain for Early Payment 42,082$
Current Annual Discount Capture 480,000$ Expected Annual Total Discount Capture 642,082$
Company A:
Business Case
Redeployed Payables Headcount 72%
Extended overall length of payment terms
Higher InvoiceWorks® Card rebate amounts than all InvoiceWorks® Costs
Current proposal to implement iPayables Payment Services
Estimated $180,000/month in new discounts 19-22% return on Working Capital Investment $1 M per year of net profit
Delta Air Lines
Customer Benefits
Efficiency Gains No Paper, Data Entry, or Archiving Eliminate Most Match Exceptions, Inquiries, and
Disputes
Cash Management/Discounts More Predictable, Flexible Cash Flow Reduce Overall Spend with Discounts and
Rebates
Better Control Real Time Visibility Enforce Match and Approval Rules Improve Contract Compliance Complete Audit History
Supplier Benefits
Process Automation Eliminate billing processing costs (printing & postage) Eliminate inbound check processing with ACH or P Card Upload invoices from A/R or ERP system or manually
“flip” online POs Resolve disputes and view PO match exceptions in
minutes, not weeks
Other Benefits Unprecedented management of payment timing View payment status online anytime $4-$13 Savings Per Transaction Improved Customer Relations
NO SUPPLIER FEES!!!!!!!!!