Invoice automation:Three keys to AP prosperity

Steve Marra

Regional Sales Manager

Solutions Sales Group

October 28, 2014

© 2014 Wells Fargo Bank, N.A. All rights reserved. Member FDIC.

What if you could ...

2

achieve a

37%risk-free

return on cash

reduce invoice

processingcosts by

best-in-class

12

be

no questions asked

Trailing

Reactive

$$$

Missed

-

Leading

Proactive

$

Gained

Approvalcycles

Working capital management

Costs to process

Early payment discounts

Supplierrelationships

3

Difference between laggards and leaders

4

14.3

8.8

3.7

3%

43%

66%

$23.30

$9.60

$4.00

Invoice processing time

Invoice processing cost

Early payment discount capture

Avera

ge

Bott

om

qu

art

ile

Best

In d

ays

How does your AP shop stack up?

From the Shadows to the Forefront: AP Automation and the Strategic Vision, Aberdeen, October 2013

5

Invoice management

Handling invoices, from arrival to payment

6

59%

52%

22%

31%

Paper

ePortal

Email13%

12%

Portal usage increasing

Invoices via method of receipt

2012 - 2013

Paystream Advisors, Electronic Invoice Management: A Move to the Middle, Q1, 2014

Mark

et

an

aly

sis

Electronic delivery is trending…

Paperdecreasing

Mark

et

an

aly

sis

7

Mark

et

an

aly

sis

…invoice automation tops the list …

Automated payment

38%

Electronic invoicing 17%

Invoice imaging

8%

Leading 2014 AP automation goals

37%Invoice

approval workflow

Paystream Advisors, Electronic Invoice Management: A Move to the Middle, Q1, 2014

8

What is the net value of each solution?

9

Without Invoice Manager

Suppliers Offices Corp A/P

10

With Invoice Manager

Suppliers Corp A/PInvoice Manager

Capture | Clean | Connect

11

a s

imp

le v

isio

n

captureclean

connect

12

What about the guest that just won’t leave?

13

Creates electronic invoices

Maximizes discount capture

Accelerates information exchange

What it solves forHigh storage and processing costs

Minimal discounts captured

Excessive status calls to AP

What it doescon

nect

14

Consider the cost of not taking a discount

15

Consider the cost of not taking a discount

16

Until their departure…what can we do to make the visit tolerable?

17

Makes workflow work

Consolidates receiving stream

Separates documents by type

Allows for header and line detail

Provides rules engine for validating, automating, and routing

What it solves for Lost or missing invoices

Excessive late payments

Wrong or invalid vendor

Miscellaneous charges

cap

ture

What it does

18

Routes for invoices for approvals

Supports GL coding

Applies business rules

Addresses exception handling

Captures trends and patterns

What it solves forMissing approvals

Invalid GL codes

Price and quantity mismatch

Audit and reporting challenges

cle

an

What it does

Fully automated invoice-to-pay workflow

20

How we build your business case

Efficiency Gains Automated matching of PO invoices Automated validation of approval controls Integrated payment execution

Error Rate Reduction Automated data entry Automated filing and archiving

Discount Capture Early pay Auto-sloping

Visibility and Control

Reduce/eliminate disputes Resolution with suppliers Reduce/eliminate status inquiries from suppliers or internal partners

Success story

21

Challenges – pre Invoice Manager

100% paper

Inefficient, manual and decentralized processes

Addressing resource demands of 20% CAGR

Increased oversight and audit requirements

Regional value added reseller of data center equipment and

operations

Success story

22

Outcomes – post Invoice Manager

88% reduction in paper invoices

75% reduction in AP time

Reduced keying errors and vendor inquiries

Streamlined and increased access to

information (audit)

“It was like hiring a body without…actually hiring a body.”

“I can’t think of a single company that could not benefit from doing this.”

23

Critical characteristics for success

Effective Affordable

Functionality that automates No cost supplier enablement

Low implementation, monthly, and transaction fees

No supplier fees

No per user license feesPartner alignment, low risk

No separate license for workflow, dynamic discounting

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Thank you!

25

Interesthigh

Mark

et

an

aly

sis

…the market is interested…

Penetrationlow

25%

37%

Deploying

Evaluating38%

Currentlyusing

11%

No interest

46%

17%

18%

8%

Solution adoption

E-Invoice - Workflow

Paystream Advisors, Electronic Invoice Management: A Move to the Middle, Q1, 2014

Mark

et

an

aly

sis