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Sponsor Event Notes The slides are available under the Resource - - PowerPoint PPT Presentation

Oct 29, 2022 12 likes •538 views

Sponsor Event Notes The slides are available under the Resource List. We will send you links via email to the presentation and the recording within 24 hrs. For CPE/CE/CPD: Answer three polling questions and remain for the

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SLIDE 1

Sponsor

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SLIDE 2

Event Notes

  • The slides are available under the “Resource List.”
  • We will send you links via email to the presentation and the recording within

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  • For CPE/CE/CPD: Answer three polling questions and remain for the
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– Questions on credits? Email cpe@proformative.com.

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  • Please take the short survey at the end of the webinar.
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SLIDE 3

MAKING THE CASE FOR AUTOMATING AP

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SLIDE 4

MEET RYAN NELSON

Goby Co-founder & COO

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SLIDE 5

THE STATE OF AP

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SLIDE 6

Today the accounts ts payable pro rocess at t most t businesses is is a hands-on aff ffair

  • Invoice arrives in

the mail

  • Routed

internally

  • Manually

logged

  • Filed or

archived

  • Paid

manually

Late Fees Hours of Manual W

  • rk

Billing Errors Cumbersome Processes

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SLIDE 7

36 36%

  • f an AP manager’s time

is spent on transactional activities rather than managing, planning, and analytics

84% 4%

  • f AP personnel time is

spent on activities considered mundane

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SLIDE 8

27 27%

  • f AP processing time

is considered waste

  • PwC

21 21%

is the amount of available early-pay discounts captured by most companies

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SLIDE 9

78% 78%

  • f AP departments operate in manual
  • r lightly automated environments

59% 59%

  • f supplier payments

are initiated electronically

—United States Federal Reserve
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SLIDE 10

27% 27%

  • f companies have done

some automation already

74% 74%

  • f the companies

that have done nothing will start by 2021

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SLIDE 11

58% 58%

  • f AP practitioners expect compliance

to become a bigger burden

  • ver the next 2 years
—IOFM’s 2018 Future of Accounts Payable Study

62% 62%

  • f AP practitioners expect demand

for real-time visibility into AP to increase in the next 2 years

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SLIDE 12

Contr troll llers rs ra rank AP as as th the most t la labor and ti time-intensive fin finance fu functio ion

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SLIDE 13

34% 34%

  • f AP leaders believe AP will become more

strategic and an agile business function

—Ardent Partners

Onl nly 13 13% % of

  • f sen

senio ior lea eade ders be belie ieve it’s a a str strateg egic pa part rtner er tha that ad adds ds val alue

—Institute of Financial Operations
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SLIDE 14

The dif iffusion of f in innovatio ion

INNO NNOVATORS 2.5% 5% EARLY RLY ADO DOPTERS 13.5% .5% EARLY RLY MAJORIT ITY 34% 34% LATE MAJORIT ITY 34% 34% LAGGARD RDS 15% 15%
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SLIDE 15 HAVE IMPLEMENTE TED Inno novato ators & Early Adop
  • pte
ters 36% 36% 25% 50% 75% 100% ARE RE IMPLEMENTING WITHIN 3 YEARS RS PLANNING TO O IMPLEMENT BY 2021 Early Majority ty & Late te Majority ty 31% 31% Lagg ggar ards ds 23% 23% Inno novato ators & Early Adop
  • pte
ters 19% 19% Early Majority ty & Late te Majority ty 19% 19% Lagg ggar ards ds 12% 12% Inno novato ators & Early Adop
  • pte
ters 45% 45% Early Majority ty & Late te Majority ty 35% 35% Lagg ggar ards ds 20% 20%

Exp xpectatio ions by companies by lev level l of f in innovatio ion

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SLIDE 16

THE FUTURE

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SLIDE 17 MORE RE TECH CHNOLOGY

Accounts payable practitioners are placing their bets on image capture, intelligent data extraction, mobile, cloud, and artificial intelligence

—IOFM’s 2018 Future of Accounts Payable Study

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SLIDE 18

THE CHECK WON’T T BE BE IN THE MAI AIL

Accounts payable departments expect to make less than half as many payments to suppliers via paper check within the next three years —IOFM’s 2018 Future of Accounts Payable Study

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SLIDE 19 LESS KEYIN ING AND ND PAPER PUS USHING

51% 51%

  • f accounts payable departments anticipate that

their departments will eliminate most of the paper invoices it receives from suppliers by 2021

—IOFM’s 2018 Future of Accounts Payable Study
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SLIDE 20 HAVE OR OR ARE RE IMPLEMENTING Inno novato ators & Early Ado dopte pters Ne Nearly 100% 25% 50% 75% 100% HAVE OR OR ARE RE IMPLEMENTI TING HAVE OR OR ARE RE IMPLEMENTI TING Early Majority ty & Late te Majority ty 85% 85% Lagg ggar ards ds 55% 55%

It It’s Now 2021

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SLIDE 21

This is becomes 100% hands-off ff

  • Invoice arrives in

the mail

  • Routed

internally

  • Manually

logged

  • Filed or

archived

  • Paid

manually

Late Fees Hours of Manual W

  • rk

Billing Errors Cumbersome Processes

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SLIDE 22 BETT TTER STA TAFF FF UTIL TILIZATION

In the future, accounts payable staff will spend less time on transactional tasks and more time on value-add activities such as data analysis and relationship building

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SLIDE 23

MAKE AP THE HERO

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SLIDE 24 DATA TA DR DRIVEN

63% 63%

percent of accounts payable practitioners expect that the use of their department’s data across the enterprise will increase “slightly” or “significantly”

  • ver the next three years
—IOFM’s 2018 Future of Accounts Payable Study
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SLIDE 25 Show me the money

57% 57%

  • f accounts payable practitioners

expect to capture higher card rebates as a total percentage of spend within the next three years

—IOFM’s 2018 Future of Accounts Payable Study Show me the money

54% 54%

  • f practitioners expect their
  • rganization to capture more

early-payment discounts

—IOFM’s 2018 Future of Accounts Payable Study
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SLIDE 26

MAKIN ING TH THE BUSIN INESS CASE CASE

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SLIDE 27

Sav ave Money & Ti Time + + Avoi

  • id Costs

+ + Make Mon

  • ney

= ROI

1. 1. governance 2. 2. stra strategic 3. 3. ROI

Valu lue Pro rop

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SLIDE 28

How will ill we save ti time & money?

  • Invoices do not get into the process

as quickly as possible

  • Errors in keying the invoice data
  • Lost or misplaced invoices
  • Long approval and exception resolution cycles
  • Coding errors
  • High paper storage and retrieval costs
  • Delays uploading data on approved invoices

to downstream systems

  • Difficulty implementing operational best practices

Fix this:

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SLIDE 29

How will ill we avoid costs? ?

  • Stop paying late fees
  • Stop over-paying
  • Stop double-paying
  • Don’t be defrauded
  • Hire less people per invoice as you grow
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SLIDE 30

How will ill we make money? ?

  • Capture early-pay discounts
  • Celebrate cash-back rebates
  • Negotiate favorable terms
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SLIDE 31

STEP 1

Diagram an overview

  • f your current process
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SLIDE 32

As-is process...

Invoice Types Received Paper PDF’s Sent to HQ AP team Mail Email Scanned & saved Sent for approval if required AP team manually enters data from invoice & codes into ERP system AP Team manually reviews invoices for errors ERP system is used for invoice payment Current system does not incorporate data analytics

Challenges: Significant manual processing and data coding, manual

integrations, dark data, keeping up with the growth of the company. Manual comparison review for quality. Sometime s sent to facility AP makes available for department heads
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SLIDE 33

Document t known chall llenges

Qua uantify iss ssues such such as: as:

  • Lost invoices and duplicate copies
  • Manual data entry
  • Matching errors and other invoice exceptions
  • Supplier inquiries and escalations
  • Duplicate payments
  • Late payments
  • Missed discounts
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SLIDE 34

STEP 2

Measure your performance

Annual invoice volume Number of FTEs (full-time equivalents) Value of all other time spent Cost per invoice & cost per FTE Total accounts payable cost

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SLIDE 35

STEP 3

Benchmark your performance

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SLIDE 36

Cost per invoice

$20.00 $12.50 $11.00 $8.50 $6.00 Low Limited Moderate Significant High

Share of e-invoices received

requiring no manual intervention

Low <10% Limited 10%-29% Moderate 30%-49% Significant 50%-80% High >80%

Level of automation

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SLIDE 37

Invoices per FTE

10,500 14,000 14,500 17,500 19,500 Low Limited Moderate Significant High

Share of e-invoices received

requiring no manual intervention

Low <10% Limited 10%-29% Moderate 30%-49% Significant 50%-80% High >80%

Level of automation

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SLIDE 38

Beli lieve it it and sell ll it! it!

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SLIDE 39

ID IDENTIFY KEY Y STA TAKEHOLDERS

AP Team CIO Controller CFO Procurement Treasury

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SLIDE 40

ENGAGING STAKEHOLDERS Implementa tation Tip ips

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SLIDE 41

Establish status sharing norms and involvement expectations for senior stakeholders Do not underestimate change management Find a good solution / implementer

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SLIDE 42

Mobi

  • bile rea

eady CX CX foc focused Cl Clou

  • ud bas

based

How to identify a good solution?

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SLIDE 43

Process Design Phased Rollout Go-Live & Hyper-Care

Project Milestones

Testing Sign-Off

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SLIDE 44

EXPECTED OUTCOME

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SLIDE 45

Best-in in-Class AP Depart rtments

  • Have cut invoice processing times in half
  • Have reduced per invoice cost by 50% or more
  • Process 3 times more invoices per FTE
  • Earn some cash-back rebate on 30% of spend
  • Capture 7 times more early pay discounts
  • Increase DPO without changing payment terms
  • Make most of their payments electronically

Exp xpect t payback perio iod of 9 to to 15 15 months on AP automatio ion inv investments

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SLIDE 46

Contin inuous Im Improvement

  • Maintain easily accessible audit trails
  • Improve position in supplier negotiations
  • Offer incredible reporting across the company

Compliance ris risks are re mitig igated

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SLIDE 47

Str trategic

A well designed big data strategy is associated with strong financial performance

* The Economist Intelligence Unit

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SLIDE 48

Success

A best-in-class AP department with inspired people ready for scale and being celebrated for their passionate corporate citizenship and value impact

  • n the company
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SLIDE 49

www.go .goby byinc nc.com

Goby Rya yan Nels lson

rnelson@gobyinc.com

https://www.linkedin.com/in/gobyryannelson/

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SLIDE 50

Q & A

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SLIDE 51
  • Thanks to our speaker
  • Join us at www.proformative.com to continue the conversation

with your peers in our community

  • If you want an introduction to today’s speaker or sponsor, tell us
  • n the survey!

A Few Final Items

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SLIDE 52

Sponsor