Aberdeen recently released their newest report on Accounts Payable automation. The 25 page research study entitled: E-Payables 2010, The Strategic Value of Accounts Payable Automation is rich with data, insights and case examples.
Over 310 companies ranging from small to large enterprises participated in two surveys that spanned the full payables process from receipt to settlement.
Aberdeen reports feature a Comparative Maturity Assessment which allows companies to benchmark themselves against best-in-class companies.
In this report Aberdeen found that top performing companies achieved:
It also found that Best-in-Class companies:
With the recession still in the rear view mirror C-level leaders are looking to reduce operational costs and the dependency on paper documents.
There are five key pressures, outlined in the Aberdeen chart below, are driving the automation of processes and digitizing of paper.
The A/P function is critical to any business for obvious reasons because they are responsible for the payment of invoices and the disbursement of cash. The report suggests that the Accounts Payable function should become strategic in nature where A/P professionals focus on matters such as cost savings, cash management, supplier relationships and financial control.
Yet, with over 70% of invoices being paper based many A/P groups are spending too much time manually managing the payment process. They are getting buried in paper and manually trying to shovel their way out. It’s difficult for A/P to play a strategic role when they are busy digging. In fact, the chart below shows the costs of sticking with the status quo.
The good news is that best-in-class companies are cutting costs using process automation and document digitization. In my next post I’ll talk about imaging and data capture and where it has the greatest cost saving impact.
Alfredo De Vanna is CTO of Yakidoo. He has over 10 years of international experience deploying over 80 critical information technology and enterprise content management systems. He is fluent in English and Spanish.