Secrets of WorldClass AP Departments JIM FLINK SR

Secrets of World-Class AP Departments JIM FLINK SR. SALES DIRECTOR JFLINK@docstar. com 609 -402 -5121

Quick Poll #1 ► How many in the room currently have an AP Automation or Document Management solution? AP Automation B. Document Management C. Document Imaging/Scanning only D. None A. © 2017 Doc. Star © 2015 Epicor Software Corporation 2

2015 Invoicing Benchmarks Average Cost per Invoice Averages Invoices per FTE $14. 21 2, 308 Average Invoice Cycle Time Average Exception Rate 12. 4 days © 2017 Doc. Star 13. 1% © 2015 Epicor Software Corporation 3

That Persistent Paper Problem Invoice Formats 30% 70% Manual Electronic © Ardent Partners - 2014 © 2017 Doc. Star © 2015 Epicor Software Corporation 4

Top Challenges for AP in 2015 © 2017 Doc. Star © 2015 Epicor Software Corporation 5

The Opportunity for AP Automation Reduce procure-to-pay process time ► Effectively capture early payment discounts ► Improve supplier and customer relations ► Gain greater business insights ► © 2017 Doc. Star © 2015 Epicor Software Corporation 6

AP Automation Adoption Rates © 2016 Pay Stream Advisors, Inc © 2017 Doc. Star © 2015 Epicor Software Corporation 7

Invoice Routing and Approval Methods © 2016 Pay Stream Advisors, Inc © 2017 Doc. Star © 2015 Epicor Software Corporation 8

Invoice Routing and Approval Methods © 2016 Pay Stream Advisors, Inc © 2017 Doc. Star © 2015 Epicor Software Corporation 9

Top Improvements Gained thru AP Automation © 2016 Pay Stream Advisors, Inc © 2017 Doc. Star © 2015 Epicor Software Corporation 10

The Technology Exists © Ardent Partners - 2015 © 2017 Doc. Star © 2015 Epicor Software Corporation 11

Quick Poll #2 ► How automated do you believe AP Automation can be? No human interaction B. Some human interaction C. Heavy human interaction A. © 2017 Doc. Star © 2015 Epicor Software Corporation 12

AP Metrics (Best-in-Class v. All Others) Best-in. Class All Others Cost per Invoice $2. 42 $17. 61 Invoices Processed per FTE / month 4, 814 1, 408 3. 7 Days 17. 1 Days 8. 0% 16. 4% Metrics Invoice Processing Cycle Time Invoice Exception Rate © Ardent Partners - 2014 © 2017 Doc. Star © 2015 Epicor Software Corporation 13

The Best-in-Class Advantage: An AP Example Per 1, 000 Invoices Best-in-Class $2. 42 per invoice Best-in-Class Monthly Cost $2, 420 All Others $17. 61 per Invoice All Others Monthly Cost: $17, 610 Best-in-Class AP groups have invoice processing costs that are 86% less than their competitors © 2017 Doc. Star © 2015 Epicor Software Corporation 14

Best-in-Class Processing Advantage © Ardent Partners - 2014 © 2017 Doc. Star © 2015 Epicor Software Corporation 15

Basics of AP Automation ► ► ► CAPTURE invoices from multiple sources: Scanner, Multi. Function Copier, Import, Email, Fax INDEX invoices using: Invoice number, Vendor name, PO number, Line item detail* INTEGRATION to Dynamics GP for powerful automation WORKFLOW for Matching, Routing, Review, & Approvals CENTRAL REPOSITORY for Secure Archiving and Retention © 2017 Doc. Star © 2015 Epicor Software Corporation 16

Integration w/Microsoft Dynamics GP Perform 2 & 3 way matching using data in Dynamics GP ► Eliminate redundant data entry by populate transaction data into Dynamics GP through e. Connect ► Retrieve documents directly from your Dynamics GP system with embedded buttons ► © 2017 Doc. Star © 2015 Epicor Software Corporation 17

Streamline AP Invoice Approvals © 2017 Doc. Star © 2015 Epicor Software Corporation 18

Secrets of the Best-in-Class Top 20% - Best in Class AP Organizations ► Secret 1 - Standardized processes and strong P 2 P linkage ► Secret 2 - Visibility to track the “metrics that matter” ► Secret 3 - Superior levels of automation • • ► Document imaging/scanning Automated routing and workflow Secret 4 - Strong process capabilities • • © 2017 Doc. Star Two and three-way matching Straight-through invoice processing © 2015 Epicor Software Corporation 19

Why Make the Change? ► ► ► Automating AP simplifies invoice approval AP teams no longer perform data entry Teams become more strategic, instead of tactical Significant cost-savings from operations Able to capture more early payment discounts • © 2017 Doc. Star 36. 7% annualized rate of return on 2/10, net 30 discounts © 2015 Epicor Software Corporation 20

Transforming an AP Operation ► ► ► Engage all relevant project stakeholders Understand business & technical requirements Determine long-term goals & objectives Align required resources Understand the project’s budget constraints Find an appropriate vendor © 2017 Doc. Star © 2015 Epicor Software Corporation 21

Strategies for Success ► ► ► Make the business case for AP automation Collaborate with all affected stakeholders Follow the lead of the Best-in-Class on processing Examine scan-and-capture & document management as a first step toward full automation AP metrics matter – identify and track the key financial, operational, and supplier indicators © 2017 Doc. Star © 2015 Epicor Software Corporation 22

What Is the Cloud? © 2017 Doc. Star © 2015 Epicor Software Corporation 23

What is the cloud? ► SAAS Software as a Service • • • ► Subscription Fee Based (Operation Expense vs Capital) Usually includes Support Storage Costs Limits Hardware Investment (Workstations Needed) Requires Internet Connectivity Major Hosting Providers • © 2017 Doc. Star Amazon Web Services, Microsoft Azure, and private built © 2015 Epicor Software Corporation 24

Cloud Pros & Cons ► Pros • • © 2017 Doc. Star Limited Hardware Investment Lower Up Front Costs Limited IT Support Requirements Limits Licensing Needs (SQL, OS) Usually Provides Automated Backups Accessible from multiple locations Usually designed to be highly redundant © 2015 Epicor Software Corporation 25

Cloud Pros & Cons ► Cons Reliant on Internet Connectivity • On-Going Costs • Security Concerns (HIPAA, ITAR) • Software Change Process not in your control • © 2017 Doc. Star © 2015 Epicor Software Corporation 26

Contact Doc. Star Jim Flink ► 609 -402 -5121 ► jflink@docstar. com ► ► Doc. Star Corporate www. docstar. com • 1 -888 -362 -7827 (1 -888 -Doc. Star) • Linked. In, Twitter, & Google+ • © 2017 Doc. Star © 2015 Epicor Software Corporation 27