Post on 01-Nov-2019
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How Do You Know When It’s Time to Automate?
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May 19-21, 2019| Walt Disney World Resort®, FL
How Do You Know When It’s Time to Automate?
Jess Scheer, Executive Editor, IOFMAdam Keck, Product Manager, Fifth Third Bank
Classification: Internal Use
Who Are We?
Jess ScheerExecutive Editor, IOFM
Adam KeckProduct Line Manager, Fifth Third Bank
Jess manages the team that ensures our training materials, best practice database and events provide our audience with the knowledge they need to improve their performance.
Adam is the Payments Product Line Group Manager, responsible for a team that covers: Commercial Card, Expert AP, Paymode-X, and Integrated Payables.
Root Cause
Symptoms
Lack of integration
Lack of visibility
Issuing paper checks
Manual processes
AP Challenges
Missing invoices
Lengthy approval times
Missed discounts
Limited technology adoption
Missing data
Invoice Exceptions
Inconsistent Data
Invoice Market Overview
Invoice Receipt Method Invoice Entry Method
45% of companies get invoices approved through a manual email or paper processPayStream Advisors, 2018 Payable Insight Report, 2018
Payments Market View
74% of companies experience actual or attempted check fraud1) Goldman Sachs: B2B how the next payments frontier will unleash small business, 20182) Mercator, The US Commercial Card Market, 2017
Payment Method (Transaction)1
B2B Payments Spend Projection1
Transformational Improvement: Automation
$4.03
$13.09
Cost Per Invoice
Hghly Automated Highly Manual
19,403
10,763
Invoices Per FTE
Highly Automated Highly Manual
>$9 per Invoice >4 hours per day
Are You Ready for Transformative Change?
IOFM and Fifth Third Bank built a Readiness Assessment Designed to help AP leaders identify:1) Their current level of process and functional maturity2) Common characteristics of AP functions that have successfully automated
The following insights are based on the assessments of 74 AP leaders in the Spring of 2019.
Assessment Demographics
7%
15%
24%
27%
27%
HIGH (1,000,000 OR MORE)
SIGNIFICANT (BETWEEN 100,000 AND 999,999)
MODERATE (BETWEEN 50,000 AND 99,999)
LIMITED (BETWEEN 10,000 AND 49,999)
LOW (FEWER THAN 10,000)
SHARE OF
RESPON
DENTS
ANNUAL INVOICE VOLUME
Manufacturing, 19%
Government, 15%
Services, 11%Health Care, 11%
All Other, 45%
INDUSTRY SPLIT
Readiness AssessmentProcess Readiness Functional Readiness
AP Operations Alignment Data Capture
P2P Operations Alignment Process Workflow
Automation Ownership Approval
Process Visualization Payments
Measurement Systems
Measurement Utilization
Change Management
IOFM’s/Fifth Third’s Self-Assessment evaluated:
Readiness Evaluated on 3-Level ScaleLevel 1: Everyone Doing Their Own Thing
Level 2:Everyone Doing The Same Thing
Level 3: Everyone Doing The Right Thing
Most AP Functions Are Stuck at Level 1
85%76%
15% 19%
0%5%
PROCESS READINESS FUNCTIONAL READINESS
1 2 3Readiness Assessment Level
Invoices Per FTE
89%64%
11%36%
LOW PERFORMERS TOP PERFORMERS
SHAR
E O
F RE
SPO
NDE
NTS
PROCESS AND FUNCTIONAL MATURITY DRIVES SUCCESS
Level 1 Level 2
Common Characteristics of Successful Automation Implementations
2.452.18 2.002.07
1.80 1.63
AL IGNMENT OF P ROCURE-TO-P AY
OP ERATIONS
P ROCESS V ISUAL IZATION
MEASUREMENT UTIL IZATION
AVER
AGE
LEVE
L OF
MAT
URI
TY
PROCESS READINESS
Top Perfomers Bottom Performers
1.822.18 2.18
1.471.80 1.90
DA T A C A PT UR E PR OC E SS WOR K FL OW
A PPR OV A LAVER
AGE
LEVE
L OF
MAT
URI
TY
FUNCTIONAL READINESS
Top Perfomers Bottom Performers
Invoices Per FTE
Top Performers: >15,000 Bottom Performers: <10,000
Cost Per Invoice
100%79%
21%
LOW PERFORMERS TOP PERFORMERS
SHAR
E O
F RE
SPO
NDE
NTS
PROCESS AND FUNCTIONAL MATURITY DRIVES SUCCESS
Level 1 Level 2
Common Characteristics of Successful Automation Implementations
1.71.9
1.51.3
ME A SUR E ME N T SY ST E MS ME A SUR E ME N T UT IL IZA T ION
AVER
AGE
LEVE
L OF
MAT
URI
TY
PROCESS READINESS: COMMON CHARCTERISTICS
Bottom Performers Top Performers
1.62.0 2.1
1.9
1.31.6 1.6 1.8
DA T A C A PT UR E PR OC E SS WOR K FL OW
A PPR OV A L PA Y ME N T S
AVER
AGE
LEVE
L OF
MAT
URI
TY
FUNCTIONAL READIENSS: COMMON CHARACTERISTICS
Bottom Performers Top Performers
Cost Per Invoice
Top Performers: >$5.50Bottom Performers: <$7.50
Define Your Strategy
Fifth Third Payables Solution SetExpert AP
• End-to-end procurement workflow and payments solution
• Centralized process for all inbound invoices
• Automated online approval workflow
• Fully managed supplier enablement and payment execution
• Single file payment initiation to streamline AP process
Paymode-X
• ACH payment network with secure vendor information and managed enrollment process
• Leveraging ACH channel to reduce transaction processing cost
• Improved reconciliation with detailed data reporting
• New dividend stream from network revenue share
Commercial Card
• Card channel solutions for traditional T&E spend and AP vendor spend
• Plastic and virtual card options enabling flexibility in card program growth
• Generate cash rebate by migrating AP spend to card channel
• Accelerate payments to vendors, while extending payables
Integrated Payables
• Single file payment solution combining Check, ACH and Wire initiation into a consolidated process flow
• Fully outsourced check production and delivery to reduce manual processing and AP costs associated with paper check
• Improved fraud risk mitigation with Positive Pay
Why Strategy MattersThe right solution is the one that best aligns with your strategic focus & capabilities
Expert AP Commercial Card
ROI – Key Considerations• Look for these factors:• What will be the value in conversion of spend for the payments?
• Does the AP solution integrate with your accounting system?
• How will you control your coding and approval workflow process?
• What are the limits of user (Are their per-user license fees)?
• What are the post-implementation or annual costs?
• How will your solution be supported long-term?
• Cost-savings:• What is the estimated cost today to process an invoice?
• What is the estimated cost today to process a check?
• What is the time savings?
Case Study
Case Study
Charting the Course
Thankyou!
We hope to see you at a future IOFM event! For upcoming events please visit:
www.iofm.com