Six Ways that Accounts Payable Departments Can Drive Business Process Improvement by IOFM
Process improvement can increase operational efficiency and effectiveness, yet manual and paper-based processes are a major barrier to improvement. That’s why 51 percent of AP departments surveyed by IOFM expect to eliminate most of the paper supplier invoices they currently receive. Implementing an automated, digital solution is the key to process improvement
This IOFM white paper tracks how top-performing AP departments (those with a high level of automation) are outpacing their peers when it comes to increases in productivity and profitability in six major ways.
- Reduced costs – Top performers spend $1.77 to process an invoice vs more than $7 for non-automated peers.
- Higher staff productivity – Top-performers process nearly 23,000 invoices annually per FTE vs, 2,000 for non-automated peers.
- Less paper handling – Top-performers automatically match 90 percent of their invoices and purchase orders on the first pass.
- Faster cycle times – Top-performers process PO-based invoices 29percent faster and non-PO-based invoices 33percent faster than their peers.
- Fewer errors – Top-performers correct less than 1 percent of all the payments they make to suppliers, while their peers correct more than twice as many.
- More discounts captured – Top-performers capture 97 percent of early-payment discounts offered vs. 21 percent for non-automated peers.
See how your department can move towards higher efficiency and how to discern which automation solution will best serve your needs by downloading this white paper.