Selecting an AP Automation Solution – Before, During and After

Those of you who have already gone through this process know very well the challenges that arise when building a business case and trying to get approval for a project, during the selection process and after deployment of a solution. The solution selection process has multiple steps that can be difficult and lengthy and it can certainly help to be well prepared for this. Whether at the beginning stage of the initiative or going through a solution deployment, the following are some tips to take into consideration

Prior to Solution Selection

There are numerous processes/steps involved leading up to the actual selection of a solution where product demos, presentations and RFP responses are being considered. These steps (many of which are included in a previous article) are as important to the overall success of an initiative as selecting the provider as they help lay the groundwork for a successful program. Recruiting Stakeholders is a critical first step to a successful project.  In the case of an AP project, some key stakeholders include procurement, finance, IT, line of business and suppliers. Understanding the current process for receiving, processing and paying invoices (see the ePayables Framework) is also important if the organization is looking to make improvements, this will identify specific pain points that will in turn help refine automation requirements. Lastly, in order to ensure long-term success of a project, there must be a solid foundation upon which to build, this can be in the form of a strategic plan (this may be the business case).

The RFP Process

Once the project has executive and stakeholders support and organizational requirements have been determined for the most part, the next stage is to issue an RFP. In some cases, an RFI may be issued prior to this to understand offerings and help in requirements gathering. An important step in this process is the technology demo, where the relevant stakeholders get a detailed (live) view into a provider’s solution. One way to get the most out of a demo is to prepare a list of items (that match your requirements) for the vendor to cover. Also, be prepared for the demo with a list of questions you and your stakeholders would like answered.

Solution Deployment

Outside of the standard deployment stages and milestones, some best practices that may make for a smoother implementation include monitoring progress and updating stakeholders on a regular basis. Stakeholders have been a part of the process from the beginning (hopefully) and must be kept up-to-date as to the progress being made. Scope creep is certainly something to watch for with so many moving parts, multiple people and multiple deliverables, a project plan that provides a focused and well-defined scope will help keep the project on track.

Post Deployment

Once a solution has been selected and deployed, there is still work to be done to ensure that the full value of the solution is delivered. A key action item during this phase is to ensure adequate communication to suppliers. If utilizing eInvoicing and/or a supplier network, a strong and well-managed communication campaign can mean the difference between a small percentage of suppliers being on-boarded or a sizeable majority. While communication is important, setting an aggressive supplier enablement goal should be a top priority as the number of suppliers on-boarded will directly impact the success of the project. Speaking of which – how is success measured? Improvements and efficiency gains can only be measured if there are defined KPIs to help track this (e.g., percentage of electronic invoices received vs. paper, number of invoices processed per AP staff, percentage of early payment discounts captured, percentage of supplier enabled, etc)

The above provides a good summary of the AP Automation Deployment Best Practices report that is part of the ePayables SMARTset; the full report can be accessed here.