Benchmarking for Continuous Improvement in AP With Microsoft
Benchmarking for Continuous Improvement in AP With Microsoft Dynamics NAV Linda Peren Partner manager
“What cannot be measured cannot be met!”
Cost per Invoice
Invoice Lead Time Average: 23 – 12. 2 days/invoice Source: Paystream Advisors, 2016; Ardent, 2016
Invoices Processed per AP FTE
Touchless Processing (%) Definition: % invoices that require no manual intervention between receipt and posted in financial system
Automatic Distribution (%) Definition: % invoices that require no manual intervention to distribute to relevant approver
Benchmarking: How to Achieve Best Practices 1. Build a baseline 2. Implement your AP automation tool 3. Use KPIs to measure AP process efficiency 4. Analyze performance to relevant benchmarks 5. Identify areas of improvement 6. Monitor KPIs
Building a Baseline
Implement your AP Automation Tool Note: This is based on 50, 000 invoices/year implementation.
Measure KPIs Cloud and big data analytics to enable KPI reporting & benchmarking Touchless ratio Manually connect ratio Processing lead time
Analyst KPIs Metric Novices Mainstream Innovators Average processing time 45 days 23 days 5 days Average processing cost/invoice $12. 26 $6. 86 $2. 67 % of electronic invoices 3% 9% 32% % of discounts captured 18% 40% 75% (invoice to approval) (combination of paper and electronic) Source: Pay. Stream Advisors + Medius “Your Path to True Straight-Through AP Processing”, May 2015
KPI’s for Continuous Improvement PO Based Invoices http: //benchmarks. mediusflow. com/index. html Current as of 9/6/17
KPI’s for Continuous Improvement Non-PO Based Invoices http: //benchmarks. mediusflow. com/index. html Current as of 9/6/17
Benchmark your KPIs vs. Industry Leaders Continuously Improve you’re AP KPIs Touchless Rate Manual connection 3 Way Match Exception Analysis % Total lead time Exception Management lead time Averag e 69% 25% 26% 7 days 3. 5 days YOU R KPIs 75% 8% 22% 0. 9 days 0. 4 days <1 day 0. 25 days Leader s 90% 7% 3% Real client example from Q 2, 2017
Implement Best Practices for Success § Ongoing reviews of software deployment § Sharing of best practices to maximize AP performance § Ensure corporate compliance controls are being adhered to § Product Roadmap Voting review § New feature and enhancements immediately available in a true-cloud solution § Genuine partnership with customers § Participate in Customer Conference
Deliver results with Microsoft Over 100 Microsoft customers are using Medius for Accounts Payable Automation & Benchmarking
“We now have the right tools and infrastructure to keep growing and we’ll be able to handle additional volume with the same staff. ” - Amando Rodriquez, AP Manager 250, 000 invoices with integration to Dynamics AX
50 thousand invoices per year ~45% Touchless processing Contacted by Medius Customer Success 59% Touchless processing and improving
Case Study: In any given week, Marc Jacobs engages 50 new vendors in work that, over the course of 1 year generates more than 54, 000 invoices. Marc Jacobs cut invoices processing time from 45 to 11 days. 93% of invoices are now routed without any human intervention. “Medius. Flow was up and running in less than 4 weeks and we realized an ROI within 7 months. ” - Regis Litre, CIO http: //customers. microsoft. com/en-us/story/marcjacobs
About Medius 100% Focus on AP automation since 2001 North American HQ in NYC, 200+ staff, 10 global offices, global partner network PO-based Workflow: Experts in automated matching Maximizing touchless, straight through processing of PO-based invoices Non-PO Workflow: Accurate coding and real-world approval routing Sequential & parallel routing, flexible approval hierarchies True-cloud company, true-cloud solution Product-based solution with continual enhancements and new features Point and click configuration, packaged best practice workflows Giving business the control, eliminating IT bottlenecks and resource demands Performance metrics and unique peer benchmarking Actionable business intelligence for ongoing improvement Built to scale for SMB to global companies 2000+ clients, 40+ countries, 45+ million invoices per year Future-proof investment Integration capability for Microsoft AX and other Microsoft Dynamics tools, multi-ERP, disparate systems…
Benchmarking Next Steps Additional Resources 1. AP Automation Benchmarks Overview http: //www. mediusflow. com/en/Medius. Flowadvantages/Benchmarks 2. Benchmark your way to Invoice Processing Excellence (Blog Post) http: //www. mediusflow. com/en/Knowledge/Blog/Benchmarkyour-way-to-invoice-processing-excellence 3. Benchmark Yourself: 5 KPIs you need to know (On-demand Webinar) http: //www. mediusflow. com/en/Knowledge/Webinars
Contact Information Linda Persen Partner Manager linda. persen@medius-group. com +1 (321) 427 -0704
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