The webinar will begin shortly. You will hear silence until the webinar begins.

Audio is provided through your computer speakers; please make sure your speakers are on.

If you are unable to hear the audio via your computer speakers, please click the phone icon above the chat window to receive the teleconference information.

For technical support for this webinar please use the chat box to communicate with the host or email: webinars@iofm.com

How Do You Know When It’s Time to Automate?

Tips for using WebEx

• Need teleconference info? Click the

Phone Icon above the Chat Box

• Please use the Chat Box to ask

questions during the webinar

• Need technical assistance? Please

use the Chat Box or email

webinars@iofm.com

• This webinar will be recorded, the

on-demand materials will be

emailed to all registrants within 2

business days.

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