The 4 Most Important Benchmarks for Becoming a Best-in-Class Accounts Payable Organization by IOFM
Measure Your Performance against Best-in-Class Accounts Payable Departments
Accounts payable departments today must strive towards best-in-class status or risk being left behind in today’s competitive global business environment. So what sets top-performing AP departments from the rest?
Best-in-class departments measure their performance by a number of benchmarks. A new Corcentric-sponsored, APP2P white paper, “The Four Most Important Benchmarks for Becoming a Best-in-Class Accounts Payable Organization,” details these benchmarks and describes how your AP can move to the next level by automating processes:
- Percentage of invoices processed straight-through – 71 percent of best-in-class AP organizations can process invoices without human intervention. According to Ardent Partners, the cost to process an invoice is $3.34 vs.$16.67 for those falling behind
- Invoice approval cycle times – Best-in-class performers have much shorter approval times than their peers, 3.6 days vs. 16.6 days per Ardent Partners.
- Alignment between AP and procurement – Best-in-class performers eliminated the silos separating these two functions. Yet, IOFM research finds that only 35 percent of businesses report that their AP and procurement functions regularly collaborate.
- Percentage of early-payment discounts captured – Top performers capture 80 percent of these discounts but most companies capture less than 21 percent of all early-payment discount offers.
Download the white paper to discover how automating your AP processes will help you reach these benchmarks by reducing costs, increasing efficiency and providing full visibility.