5 procure-to-pay trends for 2016 - amazon web services · 10.1% 25.2% 47.1% o s n es igh g, g...

The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 3/31/2016

5 Procure-to-Pay

Trends for 2016

Rob DeVincent, Corcentric

The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:

2

Rob DeVincent Vice President, Product Marketing

Over 20 years experience in designing

and implementing Accounts Payable

automation solutions

Host of an AP educational Webinar

series

Frequent speaker at various

AP tradeshows including PayStream

Advisors, IFO, and IOFM

3

5 Procure-to-Pay Trends for 2016

Trend #1: SAAS

4

Use of Cloud Technology in AP

Yes 9%

No, but plan to deploy within 6

months 9%

No, but plan to deploy within 12 months

8% No, but plan to

deploy within 24 months

7%

No, and no plans to deploy

67%

Does your AP organization use a cloud-

based solution for invoice

processing?

Source: IFO 2015

5

Benefits from Cloud Technology

2.09

2.53

3.26

3.67

5.00

5.75

5.70

0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00

• Little to no capital investment

• Minimal IT involvement

• No required software or hardware

• Lower cost per invoice

• Fast ramp-up time

• Reduced risk

• Not sure

What do you see as top reasons driving AP operations to move to cloud-based solutions or Software-as-a-Service (Please rank in order of 1 = most important)

Source: IOFM 2015

6

SaaS and the cloud

Benefits from Cloud Technology

Software

Infrastructure

SaaS – business

model

Cloud – hosting

option

SaaS

PaaS

IaaS

Internet

Mobile

Office

PDA / Smartphone

Home Office Cloud

Provider

Platform

7

Benefits from Cloud Technology

5 Procure-to-Pay Trends for 2016

Trend #2: E-Invoicing

9

The Case for E-Invoicing

• 0 to 5 percent

• 6 to 10 percent

• 11 to 25 percent

• 26 to 33 percent

• 34 to 50 percent

• 51 to 66 percent

• 67 to 75 percent

• 76 to 100 percent

• Don’t know

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

56.6%

8.5%

5.7%

5.7%

1.9%

5.7%

3.8%

5.7%

6.6%

What percentage of invoices does your organization process straight-through without any operator intervention?

Source: IOFM

10

AP Is Most Manual F&A Function

0 1 2 3 4 5

Accounts receivable

Accounts payable

Payroll

Tax

Audit & reporting

Source: IOFM

6 = Most manual F&A Function

11

The Benefit of Automation to F&A Functions 6 = Benefits most

0 1 2 3 4 5 6

Accounts receivable

Accounts payable

Payroll

Tax

Audit & reporting

Source: IOFM

12

AP Technology Priorities

3.85

5.00

4.89

5.45

5.24

5.85

7.51

6.98

9.55

12.59

10.74

12.00

12.95

12.78

14.15

15.06

16.64

15.71

18.95

18.63

20.43

18.08

0.00 5.00 10.00 15.00 20.00 25.00

• Front-end imaging

• Back-end imaging/archiving

• Data capture/OCR

• Automatic matching

• Workflow/invoice approval

• E-invoicing

• EDI

• ACH

• T&E automation

• Outsourcing

• ERP integration

• Automated tax/legal compliance

• Automated T&E expense management

• P-card rebates

• AP card rebates

• Dynamic or variable discounting

• Supply chain financing

• Vendor portal

• Business commerce network

• Cloud services

• Outsourcing

• Don't know

Source: IOFM

1 = Highest priority

13

Biggest AP Process Drivers

0% 10% 20% 30% 40% 50% 60%

Reduce invoice processing costs

Decrease invoice cycle time

Improve visibility

Centralize operations

Improve cash management

Integrate payables with other systems

Improve dispute resolution

Minimize litigation impact

Source: IOFM

14

None

5% reduction

10% reduction

15% reduction

20% reduction

25% reduction

35% reduction

50% reduction

65% reduction

75% or more

Source: AIIM

Median

Average

E-Invoicing Delivers 25% Average Cost Savings!

15

6 months 22%

9 months 27%

12 months 13%

18 months 17%

2 years 16%

3 years 2%

3+ years 3%

Source: AIIM

Average Payback from AP Automation

16

Paper to Electronic

5 Procure-to-Pay Trends for 2016

Trend #3: Mobile

18

Source: IFO 2015

Yes 4%

No, but planning to deploy within

6 months 6%

No, but planning to deploy within

12 months 11%

No, but planning to deploy within

24 months 11%

No, and no plans to deploy mobile capture and/or

approval of invoices

68%

Use of Mobile Capture for Supplier Invoices

19

Mobile in Our Personal Lives

5 Procure-to-Pay Trends for 2016

Trend #4: E-Procurement

21

Historic View of Procurement & Payables

22

42% 39%

33%

28% 27%

Savings Processes Compliance Innovation People

Source: Ardent Partners 2015

Today’s Reality: Procurement Priorities

23

Source: The Hackett Group 2015

$16.71 $15.98

$18.00

$10.04

$6.45 $4.80

2009 2011 2013

Best-in-Class Companies are Reducing Purchasing Costs (Per Order)

Peer Top Performer

Are You Falling Behind?

24

Source: Ardent Partners 2015

Between the CPO and the CFO

With Accounts Payable

With Suppliers

With Budget Holders

71%

62%

60%

47%

"Strong" Collaboration

Collaboration Impacts Purchasing Costs

25

Purchasing & Payables Must Be Better Aligned

Source: Ardent Partners 2015

66%

53%

53%

48%

44%

Earlier engagement of sourcing opportunities

New (or improved) technology

Larger and/or more talented staff

Better communication plan

Better team execution

Procurement’s top drivers for future success

26

Source: Ardent Partners 2015

37%

48%

42%

16%

50%

40%

28%

39%

29%

38% 42%

33% 30%

37%

AutomatedSpend Analysis

eSourcing AutomatedContract

Management(Repository)

AutomatedContract

Management(Authoring)

eProcurement ePayables (APAutomation)

BusinessNetwork

Currrently Use Planning to Use

Technology Adoption & Plans

27

Source: Ardent Partners 2015

14.3% Average

catalog-based

spending

28

Source: IOFM 2015

42% Average PO-

based invoices

29

• Reduce spend on goods and services • Greatly reduced processing costs • Less time on non-value add activities • Stronger internal controls • Better visibility into the entire process • Better communication across parties to

optimize decisions and strategies

The Benefits

5 Procure-to-Pay Trends for 2016

Trend #5: Reporting

31

• Key information is not captured

• Data is poorly organized

• Information is not timely

• Systems are not well-integrated

• Decision-makers don’t have access to key variables

Paper Processes Limit Visibility

32

45.4%

38.7% 42.0%

17.6%

10.1%

25.2%

47.1%

Lack

of

visi

bili

ty in

toin

voic

es a

nd

pay

able

sin

form

atio

n

Co

sts

to p

roce

ss in

voic

esar

e to

o h

igh

Dif

ficu

lty

han

dlin

g,m

anag

ing

and

fin

din

gin

voic

es

Inab

ility

to

eff

ecti

vely

max

imiz

e ve

nd

or

dis

cou

nts

Mit

igat

ing

frau

d

Pay

ing

invo

ices

in a

tim

ely

fash

ion

Min

imiz

ing

erro

rs

Which of the following are the biggest challenges in your AP department? (check all that apply)

Source: IOFM 2014 Controller’s Report

Lack of Visibility is a Top AP Challenge

33

18%

41%

39%

2%

Compared to two years ago, has the demand for real-time visibility into your AP financial data changed?

Significantly higher

Slightly higher

Unchanged

Slightly lower

Source: IOFM 2015

Demands for AP Visibility Continue to Rise

34

4.08

4.93

4.50

4.70

3.57

4.32

4.75

0.00 1.00 2.00 3.00 4.00 5.00 6.00

Liquidity management

Cash flow analysis

Compliance measure/risk mitigation

AP/AR/payments management

Managing debt

Managing corporate growth

Reducing costs

Rank the following priorities within the F&A function (Scale of 1 to 7)

Source: IOFM 2014 Controller’s Report

Visibility Drives the C-Suite’s Responsibilities

35

Source: Ardent Partners 2015

Identified or negotiated savings

Enterprise goals and objectives

% of spend under management

Booked savings

Enterprise spend

59%

56%

55%

50%

50%

"Strong Visibility"

Businesses Need Better Visibility Into Spend

36

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Faster turnaround

Better process transparency

Better auditing

Staff reductions

Fewer invoices "lost in the loop"

Enhanced supplier relationships

More early-payment discounts

Fewer payment errors

Fewer disputes

Ability to outsource

Source: AIIM

Biggest Benefits from AP Automation

37

Dashboards and Reporting Allow Organizations to

38

Reports and Dashboards Provide

39

• Procure-to-pay is gaining more attention • 5 trends will impact procure-to-pay in 2016

• Continued migration to cloud and SaaS • More use of mobile • Increased adoption and use of e-invoicing • Push to align procurement and AP • Heightened demands for reporting and analytics

• Integrating these capabilities into your operations will: • Deliver strong return on investment • Better position your organization against competitors

Conclusion

The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 3/31/2016

Questions