A Roadmap: Moving Up the Value Chain. The Paperless Office Maturity Model for Accounts Payable

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Bernard Sparks
7 years ago
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1 A Roadmap: Moving Up the Value Chain The Paperless Office Maturity Model for Accounts Payable

2 Poll QuesBon No. 1 What percentage of your invoices are paper- based? More than 75 percent 51 percent to 75 percent 26 percent to 50 percent 11 percent to 25 percent Less than 10 percent

3 What percentage of your invoices are paper- based? A. More than 75% B. 51% to 75% C. 25% to 50% D. 11% to 25% E. Less than 10% 0% 0% 0% 0% 0% More than 75% 51% to 75% 25% to 50% 11% to 25% Less than 10%

4 71% of organizabons say that at least half of their invoices are paper- based. Source: 2013 IFO AP AutomaBon Study

5 52% of business- to- business payments are made via paper check. Source: 2013 IFO AP AutomaBon Study

6 The Problems with Paper Lack of visibility into invoices and AP documents 45% Corporate directives to lower costs 44% Difficulty finding or managing paper-based documents 39% Inability to effectively manage cash according to current business needs 19% Risk of payment-related fraud 13% Difficulty handling high amounts of supplier inquiries 12% 0% 10% 20% 30% 40% 50% Percentage of Respondents, n = 188 Source: 2012 Aberdeen Group

11 Level Breakdown Level 4 4% Level 5 3% Level 3 19% Level 1 50% Level 2 24%

12 Level 1: Paper- based EnBrely paper- based invoice receipt Manual indexing and storage in file cabinets Manual data capture Manual approval workflow Inquiries handled by phone and Ad hoc, manual reporbng Decentralized, disconnected environment High cost, transac.on- focused 1

13 Percentage of Invoices Received Electronically % 2% 81-90% 4% 91-95% 6% 0% 2% 1-10% 16% 61-70% 5% 71-80% 10% 64% 11-20% 6% More than half of the respondents receive the majority of their invoices as paper % 9% 21-30% 19% 41-50% 9% 31-40% 12%

14 Level 2: Image-enabled Paper-based invoice receipt with front- or back-end imaging Manual or partial auto-indexing Physical and electronic storage Manual capture from paper or image Manual approval workflow Inquiries handled by phone and Manual reporting Partially centralized environment 2 First step toward paperless office 1

15 % of Invoices Scanned: Front or Back- End % paper invoices back- end scanned % 1-10% 11-20% 21-30% 31-40% 41-50% 71-80% 81-90% 100% % paper invoices front- end scanned

16 Level 3: Workflow-driven Invoice receipt: front-end imaging and some EDI Auto-indexing, ECM Minimal physical storage Use of OCR/ICR Automated approval workflow Image portal available for inquiries Automated reporting Centralized, connected 2 3 Bridge to electronic invoicing 1

17 Automated ReporBng and Discount Management Yes 25% Yes 25% No 75% No 75% Do you use automated reporbng tools? Do you use automated tools for discount management?

18 Poll QuesBon No. 2 Does your organizabon use automated workflow for approvals and excepbons? Yes No, but planning to within 6 months No, but planning to within 12 months No, but planning to within 24 months No, and we have no plans to do so

19 Does your organizabon use automated workflow for approvals and excepbons? A. Yes B. No, but planning to within 6 months C. No, but planning to be within 12 D. No, but planning to within 24 months E. No we have no plans to do so Yes No, but planning to within.. 0% 0% 0% 0% 0% No we have no plans to.. No, but planning to be w... No, but planning to with..

20 Saving $1 million annually by streamlined payment cycle

21 Case Example: Bentall Kennedy The Company Privately held 1,300 employees 50 office locabons across Canada and US Real estate advisory and services firm The Challenges Control and standardize AP process across 50 office locabons Streamline payment cycle and improve visibility Reduce redundancy and waste of paper- based process Increase automabon to handle 1,000 invoices per day Integrate seamlessly with JD Edwards Automation Highlights: Improved accuracy and compliance Saves more than $1 million annually Provides instant, anytime, anywhere access to documents and a detailed audit trail Accelerates payment cycle and helps capture early payment discounts

22 Level 4: E-enabled Invoice receipt: imaging, EDI, e- invoicing, (minimal paper) Auto-indexing, ECM Use of intelligent data capture, PO line-pairing Automated approval workflow, routing and dispute management Self-service portal for inquiries Automated, integrated reporting Shared services Significant steps towards STP

23 Winner: 2012 Huntington Innovation Award

24 Winner: 2013 Huntington Innovation Award

25 Does your organizabon use a supplier portal for self- service invoice status? A. Yes B. No, but planning to within 6 months C. No, but planning to within 12 months D. No, but planning to within 24 months E. No, and no plans to do so 20% 20% 20% 20% 20% Yes No, but planning to within.. No, but planning to withi... No, but planning to withi... No, and no plans to do so

26 Poll QuesBon No. 3 Does your organizabon use a supplier portal for self- service invoice status? Yes No, but planning to within 6 months No, but planning to within 12 months No, but planning to within 24 months No, and no plans to do so

27 Level 5: Paper-free Fully electronic invoice receipt Auto-indexing, ECM Touch-free data capture Exception-based approval workflow Self-service portal for inquiries, online dispute resolution Real-time, predictive, integrated reporting Shared services, harmonized Analytics-driven, value-focused 1

28 Electronic PosBng with No Manual IntervenBon 31-40% 2% 41-50% 2% 21-30% 7% 11-20% 4% 61-70% 2% 71-80% 3% 51-60% 3% 81-90% 1% 91-99% 3% Best- in- class companies electronically post 70%+ of their invoices without manual intervenkon. 1-10% 12% 0% 61% - - Gartner

33 Paperless AP is a journey, not an destination Paper remains a fact of business for AP organizations Reducing focus on transactions allows focus on value Knowing where you are helps you plot where to go next

34 Recognition for Excellence Technology Excellence in Healthcare Supply Chain

35 Questions Charles Kaplan Perceptive Software

5 Steps to the Paperless Office in Accounts Payable

5 Steps to the Paperless Office in Accounts Payable About The Institute of Financial Operations The Institute of Financial Operations is a membership-based professional association serving the entire financial