PRINCETON, N.J.--(BUSINESS WIRE)--Invocus, a fast-growing provider of eInvoicing software solutions for Accounts Payable, announces the release of ePayables 2016: Eyes on the Prize an in-depth new research report from Ardent Partners.
With underwriting support from Invocus, Ardent Partners independently and objectively conducted an in-depth benchmarking study into the state of Accounts Payable performance, process automation, and utilization of AP technology, data, and intelligence in driving business strategy and success. The report identifies notably large deltas between Best-in-Class (BIC) and all other AP organizations across six Key Performance Indicators (KPIs). For example, it finds BIC companies spending just $2.87 on average to process a single invoice (all-inclusive) versus $15.38 for all non-BIC performers. (Note: For purposes of the study, Ardent defines BIC as “the 20% of enterprises with the lowest average invoice-processing costs and shortest average invoice process cycle times.”)
“High performing organizations have significant performance advantages when compared with the rest of the marketplace,” observe the report’s authors Andrew Bartolini, Chief Research Officer and Matthew Delman, Senior Payables Researcher for Ardent Partners. “Best-in-Class AP teams achieve per-invoice processing costs that are 81% lower than their peers, and invoice processing times that are 77% faster than all other groups. Their invoice exception rates are 43% lower than the rest of the marketplace, and they have a 34% higher percentage of PO-based invoices.”
Even more notable is that BIC enterprises process nearly 60% of invoices in a straight-through manner, which, “likely contributes to their improved performance among the other indicators.” Nearly half of suppliers interacting with Best-in-Class accounts payable teams submit invoices electronically compared to just one in ten amongst all other groups, according to the report.
The report’s authors suggest that key drivers of vastly improved performance amongst Best-in-Class AP teams include greater emphasis on: forecasting and budgeting, understanding the impact of cash, developing better payment strategies, and notably higher usage of technology solutions such as document imaging/scanning, eInvoicing, automated routing and approval workflow, automated data capture and extraction, self-service supplier portals, complete procure-to-pay solutions, and business or payment networks. Advanced capabilities identified for BIC AP groups include: standardized AP processes, matching invoices to contracts or payment plans, increased straight-through processing, and measurement of AP metrics. “In addition to possessing improved process capabilities, Best-in-Class enterprises tend to adopt ePayables technologies at between 20% and 70% higher rates than all other enterprises,” the report authors say, with the most significant tech-adoption deltas coming in the areas of eInvoicing, self-service supplier portals, and complete procure-to-pay (P2P) solutions.
Consistent with process- and technology-powered performance improvement trajectories identified in Ardent’s ePayables 2016 report, report sponsor Invocus notes that active users of its solutions — which include a Supplier Self-Service eInvoicing Portal, an Invoice Processing workflow solution with automated document matching and approval workflows, and a solution that supports proactive management of Early-Payment Discounts — are clearly seeing reductions in supplier inquiries and invoice processing costs, faster invoice processing times, and rising rates for both first-pass invoice matching and on-time payment discount realization.
One U.S.-based insurance company, for example, within 6 months of implementation, has crossed 80% supplier adoption of eInvoicing, reported a one third reduction in invoice approval cycle times; enabled 1% savings from prompt payment discounts on one-third of total spending; saved $100K by eliminating over- and duplicate payments; reduced FTE requirements associated with supplier support by 87%; chopped 40% from time needed to conduct 3-way document matching, and boosted its internal stakeholder Net Promoter Score, which measures customer satisfaction, from neutral to +10. eInvoicing has also dramatically improved this company’s line-item level visibility into spending, enabling improved strategic sourcing and cost reduction efforts by procurement.
“With performance results such as these,” says Invocus CEO Aatish Dedhia, “we expect many more CFOs to be saying ‘Yes!’ to Invocus in the very near future.”
The complete 45-page report from Ardent Partners, which can be downloaded here, also includes recommendations for AP enterprises and a forward look by AP executives at potential process and technology “game changers.”
To learn more about the state of the art in eInvoicing solutions, visit the Invocus Knowledge Hub, which is home to more than a dozen recent white papers, case studies, and infographics, or visit and interact with the Invocus team on its eInvoicing blog.
ABOUT INVOCUS
Invocus helps companies make the transition from paper based Accounts Payable processes to electronic invoicing. We are proud to have as our clients some of the best-of-breed companies across verticals such as Banking and Finance, Insurance, Electronics, Health and Pharma, Education, and more.
We are the eInvoicing division of Zycus, a leading global provider of complete Source-to-Pay suite of procurement solutions.
To learn more, address e-mail to media@invocus.com or visit http://www.invocus.com/
