This session is focused on establishing attainable and measurable goals, documenting and tracking against these goals, and translating it into the benefits for your organization. A group activity will be conducted where participants are asked to develop a scorecard, track results, and present to leadership.
3. Inquiries
& Exceptions
Discounts &
Payments
Matching &
Approvals
Common Challenges That Lead to
an E-Commerce Program
3
Inquiries
& Exceptions
Discounts &
Payments
Matching &
Approvals
Receipt &
Capture
Receipt &
Capture
High cost of
Paper Invoices
Lack of
Compliance
Too many
Exceptions
Lack of
Control
“Nearly 77% of all
incoming invoices
are still paper
based.”
- Aberdeen, 2012
“15% of invoices
have exceptions
adding 6.6 days to
the cycle.”
- TAPN, 2010
“50% of
prenegotiated
discounts are
never captured.”
- Aberdeen, 2012
“$4.6 million in
contract leakage
per billion in
spend on
average.”
- The Hackett
Group, 2012
The challenges that most of your prospects will share across the invoice-to-pay process can be boiled down into four major categories:Too much paper – paper invoices are the most expensive to process when compared to e-Invoicing. Companies across the globe still have about 80% of their invoices coming in as paper. Too many exceptions – Paper handling is inefficient, and it also introduces additional cost and effort for AP for handling invoice exceptions. According to a recent TAPN survey, about 15% of invoices have errors and exceptions on average. And it costs anywhere between $20 and $200 to address each error. So for 100K invoices that is about $300K in incremental cost. At a conference last year, I heard someone say that at HP they have errors and exceptions on 39% of their invoices. 39%!Lack of ComplianceComplying with preferred vendors and pricing can also lead to significantly higher costs. A recent Hackett Group study shows that companies lose over $4 million per billion in spend under contract by paying for invoices that don’t comply with negotiated prices. For poor performing organizations, that leakage figure is many times larger.Too many missed discounts and late payments Early payment discount and dynamic discounting is an emerging best practice that can deliver over $2 million per billion in discountable spend. But most companies simply can not approve and pay their invoices on time, and miss over 50% of their discount savings.So as your listening to your prospects share their problems, dig into the pain, ask them to expand on a day-in-the-life of the invoice receipt process. Get your prospects to think about these inefficiencies, the cost, the waste, the missed opportunities.===================================================
Discount capture - ($2M for every $1B)Working Capital - ($2.7M for every $1B per day of improvement of DPO, DSO, DIO)