Ardent Partners’ research over the past few years has shown that while the average accounts payable department still lacks automation, executive focus, and general alignment with the enterprise, leading enterprises are using their AP function to a competitive advantage.
That said, why is it that so many AP departments continue to face time, cost and effectiveness challenges? The answer is clear: too much paper. In 2013, on average 74% of invoices were received in a manual format including paper, PDF, email or fax. Receiving invoices via PDF or email is no better than receiving paper unless a data capture solution is in place to automatically identify and extract data and convert it into a digital format. Otherwise the information has to be manually-entered.
While the biggest roadblock for most eInvoicing initiatives remains getting suppliers to participate in the initiative, Ardent Partners’ research shows that there has been a breakthrough and that many businesses are now overcoming this barrier.
In Ardent’s 2012 ePayables study, 77% of all AP departments reported this as the main challenge; today, that percentage has dropped to 53%, representing a 30% reduction. A large part of this drop can be attributed to the growing use of supplier networks and interoperability agreements between networks as well as the benefit to suppliers of being electronically connected to their customers. Some eInvoicing providers to note: Hubwoo, Ariba, Taulia, Basware, and Nipendo.
Here are some key stats that AP and Finance leaders should know if they’re considering (or not considering) adopting an eInvoicing solution:
Strategic
- 52% of AP/ Finance leaders reported that migrating off paper-based invoicing is a top driver for them. Tweet this!
- Approximately 30% of AP/Finance leaders have plans to use an eInvoicing solution in the near future. Tweet this!
B2B Network
- 67% of AP/Finance leaders agree that B2B networks accelerate the supplier enablement process. Tweet this!
- 65% of AP /Finance leaders agree that B2B networks are important to a successful eInvoicing initiative. Tweet this!
Suppliers
- 76% of AP/Finance leaders agree that suppliers are more favorable to submitting eInvoices today than they were three years ago. Tweet this!
- 49% of AP/Finance leaders agree that suppliers much prefer a single on-boarding process for eInvoicing, ACH, cards, etc). Tweet this!
What will 2014 bring?
What will AP/Finance leaders say this year? Help us find out by participating in our 2014 ePayables Market Research. All participants will receive the complete benchmark report ($399 value) by late April 2014.
