For all of the discussion regarding the future, it would behoove contemporary Accounts Payable (“AP”) units to model the series of key capabilities, competencies, technologies, and solutions that enable leading AP organizations to achieve Best-in-Class performance, and prove that the team has the power to drive true value across the scope of greater business operations. As AP continues its pursuit of organizational relevance and impact, while trying to secure its place in an ever-changing, digitized business world, the strategies and approaches utilized by top- performing organizations serve as a great “how-to” guide to actually achieve these goals. From the enhancement of core competencies to the development of streamlined and holistic processes supported by full AP automation (as well as the next-generation value likely to arise from emerging innovations), the modern-day AP function has the opportunity, in 2019, to improve its standing in the interconnected hierarchy of enterprise operations.
The ePayables Benchmarks
The performance of the typical AP function is rooted in its ability to effectively manage the many facets of the invoice and payment processes. In order to effectively push AP into the forefront of strategic business territory, enterprises must actively gauge, measure, and analyze their AP performance across a series of key performance indicators to use as a means to establish a performance and business impact baseline and then improve upon them.
Ardent Partners defines Best-in-Class performance as the 20% of enterprises with the lowest average invoice processing costs and shortest average invoice process cycle times. Top-performing enterprises have taken their AP operations to the next level by leveraging technology to streamline the AP process, make it more efficient, and enable more strategic activities to be carried out. Best-in-Class enterprises have demonstrated their ability to drive superior performance across both traditional and contemporary accounts payable metrics. Leading organizations have significant performance advantages when compared with their peers. Best-in-Class AP teams achieve per- invoice processing costs that are nearly five times lower, and invoice processing times that are over 2.5 times faster than all other groups. Their invoice exception rates are 114% lower, and they have a 2.2 times higher percentage of PO-based invoices than their peers. Best-in-Class organizations also process 65% of their invoices in a straight-through manner, a factor which likely contributes to their overall success.
In a new webinar presented by MetaViewer, Ardent’s Research Director, Bob Cohen, will discuss the “Achieving Best-in-Class Results in AP with ePayables” (click to register). On this webinar, scheduled for Wednesday, December 19 at 2pm ET, he will examine how the use of ePayables technology can help develop top-performing AP departments through:
- Utilization of automation
- Standardized AP processes
- Straight-through invoice processing
- Analysis of AP performance and KPIs
Conclusion
Technology is the linchpin to AP’s ultimate success. In the discussion of exactly how this function will fit into the future of the enterprise, automation is the big answer. The successful deployment and adoption of ePayables solutions are traditionally what is needed to push most AP into the next maturity phase. And based on Ardent’s market leading research, top-performing AP departments are the ones most prepared to help businesses become more strategic, more efficient and more competitive.
Webinar Details:
Achieving Best-in-Class Results in AP with ePayables
Wednesday, December 19 at 2 PM ET
Featuring Bob Cohen
Sponsored by: MetaViewer
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