[webinar] new year, new ap
TRANSCRIPT
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New Year, New AP
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Today’s SpeakerCraig Simpkins, CAPP, CFE
Director of Global Process OrganizationJohnson Controls, Inc.
Peter BeplerCo-founder and President
Anybill
Guest FacultyChris Hutson
Chief Financial OfficerTexas Tech Federal Credit Union
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Another year brings a new perspective to driving efficiencies within your accountspayable process.
In this webinar, we will discuss ways to:- eliminate the agony of lost invoices - streamline the approval process - systematically track invoices - improve visibility within the invoice process
What you will learn..
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Top Financial Automation Goals
Source: Invoice and Workflow Automation Benchmark Report, Paystream Advisors
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If/when is your organization planning to automate?A. No timeframeB. Within a monthC. 2-6 monthsD. More than 6 monthsE. No plan to automate at this time
Polling Question #1
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Invoice Cost
Source: Invoice and Workflow Automation Benchmark Report, Paystream Advisors
Average cost to process an invoice by Company size
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Invoice Receipt and Payment Process
Source: Invoice and Workflow Automation Benchmark Report, Paystream Advisors
Method used for invoice collection and payment
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• High volumes of paper invoices and paper-based payments result in:– High costs– Decentralized process– Lost or missing invoices– Multitude of errors– Slow processing turnaround– Lack of visibility– Lost supplier discounts
Current Challenges
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Solutions that can eliminate paper and drive efficiencies:– Electronic invoicing– Supplier portals– Document scanning– Data extraction– Automated Workflow– Electronic Payments
Tools and Technologies
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Invoice Receipt Method
Source: Invoice and Workflow Automation Benchmark Report, Paystream Advisors
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Invoice Receipt Method
Source: Invoice and Workflow Automation Benchmark Report, Paystream Advisors
Paper decreases by 12 points over a two year period from 64% to 52%
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Invoice Receipt Method
Source: Invoice and Workflow Automation Benchmark Report, Paystream Advisors
Paper decreases by 12 points over a two year period from 64% to 52%
Electronic invoices increase by 17 points over a two year period from 14% to 31%
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Invoice Receipt Method
Source: Invoice and Workflow Automation Benchmark Report, Paystream Advisors
Paper decreases by 12 points over a two year period from 64% to 52%
Electronic invoices increase by 17 points over a two year period from 14% to 31%
Faxes decrease slightly over a two year period from 9% to 5%
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What percentage of your organization’s invoices are PO-based?A. 0-20%B. 21-40%C. 41-60%D. 61-80%E. 81-100%
Polling Question #2
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• Budget constraints• Lack of business case (i.e ROI)• No buy-in from management• Lack of understanding of solutions• Staff not qualified to work with technology• Confidence in current processes• Lack of resources to support and maintain solution
Barriers to adoption of eInvoicing
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Benefits Achieved through eInvoicing
Source: Invoice and Workflow Automation Benchmark Report, Paystream Advisors
Current Challenges of high volumes of paper invoices and paper-based payments:
High costsDecentralized processLost or missing invoicesMultitude of errorsSlow processing turnaroundLack of visibilityLost supplier discounts
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Benefits Achieved through eInvoicing
Source: Invoice and Workflow Automation Benchmark Report, Paystream Advisors
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Supplier portal in some form can facilitate:• Transmission of Purchase Order to Supplier• Electronic submission of invoice from supplier• Data integrity to reduce invoicing errors• Reduction in invoice capture and entry costs• Real-time visibility and status of invoice• Payment status• Improved suppler relations• And, It’s Green!
Supplier Portal
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Supplier Portal
57% - Companies with revenue > $5 billion
11% - Companies with revenue < $250 million
Source: 2013 AP Automation Study: IFO and Anybill
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Supplier Portal
Most important driver of your decision to implement a supplier portal
Source: 2013 AP Automation Study: IFO and Anybill
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Supplier Portal
Source: 2013 AP Automation Study: IFO and Anybill
Which AP functions are supported through your supplier portal?
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Back-End Invoice Capture and Archival• Invoices and supporting documentation are scanned at the end of the
process.• Once indexing is complete, the document images are stored in an
electronic repository for retrieval based on the searchable fields created.
Front-End Document and Data Capture• Most advanced use of imaging technology• Can either scan or utilize OCR• Facilities workflow and approval process
Document Scanning/Data Capture
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Document Scanning/Data Capture
Source: 2013 AP Automation Study: IFO and Anybill
What types of capture technology are you using?
2012 Results were 47%
2012 Results were 36%
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Front-End Capture with Matching and Workflow• Combines front-end document data capture with workflow
capabilities.• Automates the invoice receipt-to-pay cycle.• Enables AP departments to determine how different invoices are
handled
Automated Data Extraction Tools• Facilitate the extraction of information from scanned invoices• Template-based Optical Character Recognition (OCR)• Free-Form recognition • Intelligent Document Recognition (IDR)
Document Scanning/Data Capture
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Document Scanning/Data Capture
23.3%
76.7%
Yes
No
Source: 2013 AP Automation Study: IFO and Anybill
Does your organization use OCR technology to capture invoice data?
2012 results were 80.6%
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Document Scanning/Data Capture
Primary reason why an organization does not utilize OCR
Source: 2013 AP Automation Study: IFO and Anybill
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Document Scanning/Data Capture
Source: Invoice and Workflow Automation Benchmark Report, Paystream Advisors
Front-end Imaging with OCR/IDR
Adoption rates continue to increase
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Automated Workflow
Adoption of Approval Workflow Solutions
Source: Invoice and Workflow Automation Benchmark Report, Paystream Advisors
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Automated Workflow
Source: Invoice and Workflow Automation Benchmark Report, Paystream Advisors
Benefits of Approval Workflow Solutions
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Based on our discussion based on benefits of approval workflowsolutions, identify the top benefit received when implementingthis technology?
a) Improved productivityb) Lower Costsc) Quicker approval of invoicesd) Enhanced compliance
Polling Question #3
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Based on our discussion based on benefits of approval workflowsolutions, identify the top benefit received when implementingthis technology?
a) Improved productivityb) Lower Costsc) Quicker approval of invoicesd) Enhanced compliance
Polling Question #3
At 78%
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Benefits achieved through electronic payments:• Lower processing costs• Reduction in procure-to-pay cycle times• Reduction in check fraud/lost checks• Increased vendor satisfaction• Increase in on-time payments• Increased ability to capture early discounts• Reduction in duplicate payments
Electronic Payments
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Barriers to electronic payments:• Lack of budget• ERP constraints• Comfortable with current process• Supplier resistance• Belief that ROI will not exist
Electronic Payments
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Electronic Payments
Methods used for B2B Payments
Source: 2013 AP Automation Study: IFO and Anybill
2012 Results were 57%
2012 Results were 25.5%
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Electronic Payments
Source: 2013 AP Automation Study: IFO and Anybill
The importance of electronic payments
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Electronic Payments
Percent of invoices paid electronically
Source: Invoice and Workflow Automation Benchmark Report, Paystream Advisors
Opportunity
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Based on our previous discussion related to electronic payments, what percentage of your organization’s payments are processed electronically?
A. 0-25%B. 26-50%C. 51-75%D. 76-100%E. We don’t process electronic payments
Polling Question #4
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Supply Chain Finance
Is trade finance part of your AP Strategy?
Source: 2013 AP Automation Study: IFO and Anybill
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Supplier Discounts
Source: Invoice and Workflow Automation Benchmark Report, Paystream Advisors
Ability to Capture Supplier Discounts
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Benefits of the Cloud
Source: 2013 AP Automation Study: IFO and Anybill
Benefits of Cloud or software-as-a-service solutions
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Case Study: Texas Tech Federal Credit UnionChallenges• The number of invoices processed rose 100% within a two-year period• If they continued to process invoices manually, they would need to hire an
additional AP clerk
Solution• Their Accounting department wanted to increase efficiency and cut costs• CFO’s priority was finding an integrated solution including entry, approval, and
especially payments component
Results• Achieved its business goals and is better positioned to face auditing and
compliance issues in the future• Protects against costly errors• Dramatic improvement in processing and approval time• Now takes advantage of early-pay discounts, avoids late payment fees, and
improves cash flow• Access to online dashboard gives executives real-time, actionable data
anywhere, anytime
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• Trends show that organizations are adapting technological solutions.
• Reducing costs within an organization to remain competitive will continue to exist.
• Opportunities continue to increase in the area of procure-to-pay to capitalize an automated solutions.
• There are economical solutions to leverage when implementing technology, “why buy a Cadillac when a Yugo will be sufficient”
• The opportunity exists for you to drive your organization to the next level…
Conclusion
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With the fresh start of a new year, there is no better time to kick off your AP automation
project.
What are you waiting for?
Final Thought
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Thank you!If you have further questions, please feel free to contact the Anybill Team at [email protected]
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