Digital Procure-To-Pay - Study Summary Charts - 15 AUG 2017

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This document summarizes the findings of a study on digital procure-to-pay programs. It shows that over 80% of respondents process purchase orders digitally, primarily using EDI or e-marketplaces. Three-quarters have or plan to have a digital procure-to-pay program. The benefits of these programs include improved visibility, efficiency, accuracy and costs. Respondents are primarily manufacturers in industries like CPG and industrial manufacturing located in North America.

Empresariales

Digital Procure-to-Pay Study
Summary Charts
2016-2017

Supply Chain Insights LLC Copyright © 2016, p. 2
Agenda
 Study Overview
 Digital B2B Methods
 Digital P2P Program
 Purchase Orders
 Advance Shipping Notices
 Invoices
 Demographics

Supply Chain Insights LLC Copyright © 2016, p. 3
Study Overview

Supply Chain Insights LLC Copyright © 2016, p. 4
Groups for Analysis

Supply Chain Insights LLC Copyright © 2016, p. 5
Highlights by Group

Supply Chain Insights LLC Copyright © 2016, p. 6
Definitions Provided to Respondents

Supply Chain Insights LLC Copyright © 2016, p. 7
Respondents Were Asked About the B2B Methods Used for
Processing Purchase Orders

Supply Chain Insights LLC Copyright © 2016, p. 8
Agenda
 Study Overview
 Digital B2B Methods
 Digital P2P Program
 Purchase Orders
 Advance Shipping Notices
 Invoices
 Demographics

Supply Chain Insights LLC Copyright © 2016, p. 9
Groups for Analysis
Three primary groups included in this analysis:
1. Total Manufacturers, Retailers, & Distributors: to determine use of
B2B methods. (n=114)
2. Digital B2B Users: to understand the presence of a digital P2P
program. (n=84)
3. Have or Plan to Have a Digital P2P Program: the bulk of the analysis
is based on this group. Those with a program are combined with those
planning to have a program because there are too few people who
already have a program to analyze them independently. (n=45)

Supply Chain Insights LLC Copyright © 2016, p. 10
Over 80% Process Purchase Orders Using a DIGITAL B2B
Method, Primarily an EDI/TP Gateway Solution

Supply Chain Insights LLC Copyright © 2016, p. 11
Share of Purchase Order Processing Varies
Greatly by B2B Method

Supply Chain Insights LLC Copyright © 2016, p. 12
Agenda
 Study Overview
 Digital B2B Methods
 Digital P2P Program
 Purchase Orders
 Advance Shipping Notices
 Invoices
 Demographics

Supply Chain Insights LLC Copyright © 2016, p. 13
Groups for Analysis
Three primary groups included in this analysis:
1. Total Manufacturers, Retailers, & Distributors: to determine use of
B2B methods. (n=114)
2. Digital B2B Users: to understand the presence of a digital P2P
program. (n=84)
3. Have or Plan to Have a Digital P2P Program: the bulk of the analysis
is based on this group. Those with a program are combined with those
planning to have a program because there are too few people who
already have a program to analyze them independently. (n=45)

Supply Chain Insights LLC Copyright © 2016, p. 14
Over Three-Quarters Have or Plan to Have a Digital P2P
Program

Supply Chain Insights LLC Copyright © 2016, p. 15
Groups for Analysis
Three primary groups included in this analysis:
1. Total Manufacturers, Retailers, & Distributors: to determine use of
B2B methods. (n=114)
2. Digital B2B Users: to understand the presence of a digital P2P
program. (n=84)
3. Have or Plan to Have a Digital P2P Program: the bulk of the analysis
is based on this group. Those with a program are combined with those
planning to have a program because there are too few people who
already have a program to analyze them independently. (n=45)

Supply Chain Insights LLC Copyright © 2016, p. 16
Benefits of Digital P2P Program Include Improved Visibility,
Efficiency, Accuracy, Speed, Customer Relations, and Cost

Supply Chain Insights LLC Copyright © 2016, p. 17
Obstacles of Digital P2P Program Include Issues with
Acceptance, Implementation, Training, Errors, & Resources

Supply Chain Insights LLC Copyright © 2016, p. 18
For Those with Digital P2P Program the
Focus Is Primarily on Corporate

Supply Chain Insights LLC Copyright © 2016, p. 19
Digital P2P Processes Are Most Mature in Terms of
Invoicing and Settlement

Supply Chain Insights LLC Copyright © 2016, p. 20
Companies Are Working to Improve Their Digital P2P Processes
via Technology, Training, Integration, & Program Growth

Supply Chain Insights LLC Copyright © 2016, p. 21
Those with a Digital P2P Program Are Most Effective at Order
Status Tracking and Supplier Spend Data

Supply Chain Insights LLC Copyright © 2016, p. 22
Companies Using Multi-Party Business Networks
Use Two on Average

Supply Chain Insights LLC Copyright © 2016, p. 23
On Average, Companies Using EDI or Multi-Party Business
Networks Communicate with 63% of Their Suppliers
Using These Methods

Supply Chain Insights LLC Copyright © 2016, p. 24
Agenda
 Study Overview
 Digital B2B Methods
 Digital P2P Program
 Purchase Orders
 Advance Shipping Notices
 Invoices
 Demographics

Supply Chain Insights LLC Copyright © 2016, p. 25
Groups for Analysis
Three primary groups included in this analysis:
1. Total Manufacturers, Retailers, & Distributors: to determine use of
B2B methods. (n=114)
2. Digital B2B Users: to understand the presence of a digital P2P
program. (n=84)
3. Have or Plan to Have a Digital P2P Program: the bulk of the analysis
is based on this group. Those with a program are combined with those
planning to have a program because there are too few people who
already have a program to analyze them independently. (n=45)

Supply Chain Insights LLC Copyright © 2016, p. 26
Those with a Digital P2P Program Report Delivering 73%
Digitally on Average

Supply Chain Insights LLC Copyright © 2016, p. 27
Among Those Who Have a Digital P2P Program, Most Track
or Plan to Track Internal Costs for Processing Orders

Supply Chain Insights LLC Copyright © 2016, p. 28
Among Those Who Have a Digital P2P Program, Most
Process Order Changes Digitally

Supply Chain Insights LLC Copyright © 2016, p. 29
Supplier Metrics Most Commonly Received in a Timely
Manner Include Delivery Punctuality and Price Variance

Supply Chain Insights LLC Copyright © 2016, p. 30
Agenda
 Study Overview
 Digital B2B Methods
 Digital P2P Program
 Purchase Orders
 Advance Shipping Notices
 Invoices
 Demographics

Supply Chain Insights LLC Copyright © 2016, p. 31
Groups for Analysis
Three primary groups included in this analysis:
1. Total Manufacturers, Retailers, & Distributors: to determine use of
B2B methods. (n=114)
2. Digital B2B Users: to understand the presence of a digital P2P
program. (n=84)
3. Have or Plan to Have a Digital P2P Program: the bulk of the analysis
is based on this group. Those with a program are combined with those
planning to have a program because there are too few people who
already have a program to analyze them independently. (n=45)

Supply Chain Insights LLC Copyright © 2016, p. 32
Among Those with a Digital P2P Program, Many Require
Suppliers to Provide ASN

Supply Chain Insights LLC Copyright © 2016, p. 33
Half of ASNs Are Received Digitally on Average; When Not
Digital, Errors Are Most Common Challenge

Supply Chain Insights LLC Copyright © 2016, p. 34
Benefits of ASNs Include Improved Planning,
Processes, and Visibility

Supply Chain Insights LLC Copyright © 2016, p. 35
Agenda
 Study Overview
 Digital B2B Methods
 Digital P2P Program
 Purchase Orders
 Advance Shipping Notices
 Invoices
 Demographics

Supply Chain Insights LLC Copyright © 2016, p. 36
Groups for Analysis
Three primary groups included in this analysis:
1. Total Manufacturers, Retailers, & Distributors: to determine use of
B2B methods. (n=114)
2. Digital B2B Users: to understand the presence of a digital P2P
program. (n=84)
3. Have or Plan to Have a Digital P2P Program: the bulk of the analysis
is based on this group. Those with a program are combined with those
planning to have a program because there are too few people who
already have a program to analyze them independently. (n=45)

Supply Chain Insights LLC Copyright © 2016, p. 37
Over Half of Invoices Are Received Digitally on Average;
When Not Digital, Mostly Time-Consuming with More Errors

Supply Chain Insights LLC Copyright © 2016, p. 38
Among Those Who Have a Digital P2P Program, About Half
Track or Plan to Track Internal Costs for Processing Invoices

Supply Chain Insights LLC Copyright © 2016, p. 39
Agenda
 Study Overview
 Digital B2B Methods
 Digital P2P Program
 Purchase Orders
 Advance Shipping Notices
 Invoices
 Demographics

Supply Chain Insights LLC Copyright © 2016, p. 40
Groups for Analysis
Three primary groups included in this analysis:
1. Total Manufacturers, Retailers, & Distributors: to determine use of
B2B methods. (n=114)
2. Digital B2B Users: to understand the presence of a digital P2P
program. (n=84)
3. Have or Plan to Have a Digital P2P Program: the bulk of the analysis
is based on this group. Those with a program are combined with those
planning to have a program because there are too few people who
already have a program to analyze them independently. (n=45)

Supply Chain Insights LLC Copyright © 2016, p. 41
Respondents Are Primarily Manufacturers
Across a Mix of Industries

Supply Chain Insights LLC Copyright © 2016, p. 42
The Most Common Industries Represented Are
CPG and Industrial Manufacturing

Supply Chain Insights LLC Copyright © 2016, p. 43
Most Work in a Supply Chain Role and
Are Based in the US or Canada

Supply Chain Insights LLC Copyright © 2016, p. 44
Groups for Analysis
Three primary groups included in this analysis:
1. Total Manufacturers, Retailers, & Distributors: to determine use of
B2B methods. (n=114)
2. Digital B2B Users: to understand the presence of a digital P2P
program. (n=84)
3. Have or Plan to Have a Digital P2P Program: the bulk of the analysis
is based on this group. Those with a program are combined with those
planning to have a program because there are too few people who
already have a program to analyze them independently. (n=45)

Supply Chain Insights LLC Copyright © 2016, p. 45
Of Those Using Digital B2B Methods, the Majority of Them
Are Also Involved with the Methods

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Executive Summary Today, the performance of an organization hinges more than ever on the effectiveness of flows between, and amongst, trading partners. It is not easy. The supply chain is not linear, and the relationships extend across geographic borders and industry sectors. Outsourcing relationships have grown in the last decade; however, the automation of these networks has not kept pace. In the words of one respondent interviewed for this report in a facilitated workshop to review the data, “Today, we connect trading partners through spreadsheets, email, phone and fax. It is antiquated. I liken it to baling wire, chewing gum and duct tape. I need solutions that can synchronize and harmonize data across trading partners in real-time. My operating committee does not think that it is sexy to invest in B2B solutions, but it is needed. Today, it is almost impossible for us to understand the manufacturing status of purchase orders, and have accurate information readily on supply chain visibility of in-transit shipments. As a result, we make the wrong decisions, and have unnecessary wait times to get information.” These comments echo the findings in this study. Respondents operate value networks, but they struggle to get to the data they need. The outsourcing of logistics is greater than manufacturing. Eighty-one percent of companies outsource logistics. The volume of outsourced logistics is 48% on average. In contrast, 66% of companies outsource manufacturing. The outsourced volume manufacturing volume varies, but averages 15%. While the networks are complex, and the goals are many, progress is hard to track. This leads many supply chain leaders to ask, “What is the current state? What is the opportunity?” Answering these questions is the goal of this report. Let’s start with the current state. As seen in Figure 2, the average respondent in this report believes that the supply chain today is more controlled and global than compared to two years ago. While they have made improvements in agility and proactivity, there is much more left to do. The largest challenges are in the use of outside-in data to improve channel sensing and reduce risk. While the supply chain today has made progress in transactional efficiency, companies are less competent at sensing opportunities and mitigating risks.

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1. Digital Procure-to-Pay Study Summary Charts 2016-2017

9. Supply Chain Insights LLC Copyright © 2016, p. 9 Groups for Analysis Three primary groups included in this analysis: 1. Total Manufacturers, Retailers, & Distributors: to determine use of B2B methods. (n=114) 2. Digital B2B Users: to understand the presence of a digital P2P program. (n=84) 3. Have or Plan to Have a Digital P2P Program: the bulk of the analysis is based on this group. Those with a program are combined with those planning to have a program because there are too few people who already have a program to analyze them independently. (n=45)

13. Supply Chain Insights LLC Copyright © 2016, p. 13 Groups for Analysis Three primary groups included in this analysis: 1. Total Manufacturers, Retailers, & Distributors: to determine use of B2B methods. (n=114) 2. Digital B2B Users: to understand the presence of a digital P2P program. (n=84) 3. Have or Plan to Have a Digital P2P Program: the bulk of the analysis is based on this group. Those with a program are combined with those planning to have a program because there are too few people who already have a program to analyze them independently. (n=45)

15. Supply Chain Insights LLC Copyright © 2016, p. 15 Groups for Analysis Three primary groups included in this analysis: 1. Total Manufacturers, Retailers, & Distributors: to determine use of B2B methods. (n=114) 2. Digital B2B Users: to understand the presence of a digital P2P program. (n=84) 3. Have or Plan to Have a Digital P2P Program: the bulk of the analysis is based on this group. Those with a program are combined with those planning to have a program because there are too few people who already have a program to analyze them independently. (n=45)

25. Supply Chain Insights LLC Copyright © 2016, p. 25 Groups for Analysis Three primary groups included in this analysis: 1. Total Manufacturers, Retailers, & Distributors: to determine use of B2B methods. (n=114) 2. Digital B2B Users: to understand the presence of a digital P2P program. (n=84) 3. Have or Plan to Have a Digital P2P Program: the bulk of the analysis is based on this group. Those with a program are combined with those planning to have a program because there are too few people who already have a program to analyze them independently. (n=45)

31. Supply Chain Insights LLC Copyright © 2016, p. 31 Groups for Analysis Three primary groups included in this analysis: 1. Total Manufacturers, Retailers, & Distributors: to determine use of B2B methods. (n=114) 2. Digital B2B Users: to understand the presence of a digital P2P program. (n=84) 3. Have or Plan to Have a Digital P2P Program: the bulk of the analysis is based on this group. Those with a program are combined with those planning to have a program because there are too few people who already have a program to analyze them independently. (n=45)

36. Supply Chain Insights LLC Copyright © 2016, p. 36 Groups for Analysis Three primary groups included in this analysis: 1. Total Manufacturers, Retailers, & Distributors: to determine use of B2B methods. (n=114) 2. Digital B2B Users: to understand the presence of a digital P2P program. (n=84) 3. Have or Plan to Have a Digital P2P Program: the bulk of the analysis is based on this group. Those with a program are combined with those planning to have a program because there are too few people who already have a program to analyze them independently. (n=45)

40. Supply Chain Insights LLC Copyright © 2016, p. 40 Groups for Analysis Three primary groups included in this analysis: 1. Total Manufacturers, Retailers, & Distributors: to determine use of B2B methods. (n=114) 2. Digital B2B Users: to understand the presence of a digital P2P program. (n=84) 3. Have or Plan to Have a Digital P2P Program: the bulk of the analysis is based on this group. Those with a program are combined with those planning to have a program because there are too few people who already have a program to analyze them independently. (n=45)

44. Supply Chain Insights LLC Copyright © 2016, p. 44 Groups for Analysis Three primary groups included in this analysis: 1. Total Manufacturers, Retailers, & Distributors: to determine use of B2B methods. (n=114) 2. Digital B2B Users: to understand the presence of a digital P2P program. (n=84) 3. Have or Plan to Have a Digital P2P Program: the bulk of the analysis is based on this group. Those with a program are combined with those planning to have a program because there are too few people who already have a program to analyze them independently. (n=45)

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