An Ardent Partners white paper suggests that a holistic approach to accounts payable is the best way to ensure a successful integrated payables program.
When you consider the individual components and functions that go into every B2B transaction, it’s easy to see how people tend to silo themselves and just consider their own unique functions essentially in a vacuum. That might have worked for business in the 20th century, but is a recipe for failure in the 21st and beyond.
A recent Ardent Partners white paper, Integrated Payables: Why Holistic AP Transformation is the Best Path Forward, examines how best-in-class companies that have grasped the need for collaboration and process integration have reaped impressive rewards. This paper, sponsored by Corcentric, also explores the steps that companies need to take to not just improve performance and productivity but actually transform what was once a back-office cost center into a potentially revenue-enhancing strategic player in the company’s overall goals.
The success of this venture depends on digitizing and automating each step in the process, utilizing cloud-based solutions often through a third-party provider and collaborating not just with internal stakeholders but with suppliers as well. Implementing a cloud-based solution gives every stakeholder full visibility into the workflow, from PO to invoice to payment. This visibility enables finance to look at all payables and get a much more accurate view of their existing working capital. And that, in turn, can lead to greater accuracy in forecasting.
If there is any doubt that companies that have implemented an integrated payables solution see substantial benefits, consider these statistics the paper cites from Ardent Partners’ “State of ePayables 2016: Eyes on the Prize.” See the advantage that best-in-class AP operations have over those that have not achieved that status:
- Average cost to process a single invoice – 81% lower
- Average time to process a single invoice – 77% faster
- Average cost to process a single supplier payment – 92% lower
- Percentage of suppliers accepting e-payments – 17% higher
- Invoice exception rate percentage – 43% lower
- Percentage of invoices processed “straight-through” – 255% higher
- Percentage of suppliers that submit invoices electronically – 275% higher
- Percentage of invoices linked to a Purchase Order – 34% higher
Discover the path to AP productivity and enterprise profitability by reading this valuable white paper.