What do you consider to be the key financial priorities for your organization for the year ahead?
The CFO’s motivation...
Strategic Priorities
72% 48%
45% 43%
35%
Improving operational efficiency
Optimising cash flow and working capital management
Increasing profits and top line performance
Reducing overall purchase costs
Improving forecasting / planning ability
Basware Global Survey 2011
... How Accounts Payable can influence that.
The Top 10 Mistakes in Accounts Payable
And How to Avoid Them
Shuffle Paper for Invoice Approval Problems
Ø Photocopying of Invoices
Ø Tracking of Invoices in Process
Ø Faxing of Invoices
Ø Printing of emailed invoices
Ø Temporary Filing of Invoices in AP
Imaging and Workflow Automation: Paystream Advisors 2012
Pay Late Fees and Not Taking Discounts
Problems
Ø Can Cause Issues in Obtaining Additional Credit
Ø Strained Vendor Relations
Ø Additional $$$$ – Wasting Potential Interest – Missing Favorable Discounts
High Cost of Processing an Invoice
Problems
Ø Courier Costs
Ø Manual Data Entry
Ø Manual Matching
Ø Manual Exception Handling
Ø Manual Approval
Ø Labor Spent Tracking Invoices Internally
Ø Responding to Vendor/Internal Requests
Unrecorded Liabilities
Problems
Ø Not Able to Perform Accruals on Actual Liabilities
Ø Creates Cash Flow Management Challenges
Ø Reporting Issues – Reporting on estimates – Adjusting based on actual
EDI or E-invoicing=Paperless??
Problems
Ø EDI is a Recommend Format not a Fixed Format
Ø EDI Typically Requires IT Involvement on Both Sides
Ø e-Invoicing – E-Invoicing is not just a simple project
Paystream e-invoicing adoption benchmarking Report 2011
Audits and Compliance Problems
Ø Must Have an Auditable and Repeatable Business Process
Ø Auditors Always Seem to Want the One Invoice You Can’t Find or Mishandled
Ø Store your invoice, check images, or remittance documents in multiple locations or media making audits painful and expensive
Ø Fraud in Invoice Approval
and payments
Fraud associated with Payment method Aberdeen Group May 2010
SAP V.3.4
Purchasing & Procurement
Financial Operations AP/AR
Supplier Data
Cash Control & Working Capital
Processes
ORACLE V.9.0
Purchasing & Procurement
Financial Operations AP/AR
Supplier Data
Cash Control & Working Capital
Processes
Infor ERP
Purchasing & Procurement
Financial Operations AP/AR Cash Control &
Working Capital Processes
SAP V.5.0
Purchasing & Procurement
Financial Operations AP/AR
Supplier Data
Cash Control & Working Capital
Processes
Fragmented silos mean fractured processes Paper processes still dominate
Are you struggling to work together?
Supplier Data
Differing Priorities exasperate the problem example scenario:
AP: Focusing on process control, compliance
& efficiencies. (e.g. error & dispute
Management)
IT: Balancing
Cloud v. On-Premise Strategies
Treasury: Optimizing cash, coping
with squeezed credit lines & currency volatility
Finance: looking to improve
working capital by pushing out payment terms
Procurement: Focused on savings
targets, not total cost and working capital
optimization and supply assurance
Suppliers: Factoring in increasing
‘cost of business’ into pricing & terms,
exposed to liquidity risk
Call Center/Service Center
Problems
Ø Interrupts the Core Work of Accounts Payable Professionals
Ø Typically Requires Research and Then an Additional Follow Up Call
Ø Even Research Does Not Always Answer the Request – If the invoice is not in the AP process it is difficult to locate – Who really understand what the supplier delivered
Core Business Interrupted
Problems
Ø Production Stops – If required goods and services being provided by vendors are placed on hold it can cause down stream issues.
Ø Missed Revenue
Ø Gets Executive Attention Fast
Manual Data Entry
Problems
Ø High Cost to Manually Enter Required Invoice Header, Line and Coding Information – Most organizations do not capture line item detail due to this – Line item detail critical in managing purchasing costs – Coding can sometime be extensive
Ø Accuracy Issues
Ø AP processors Least Favorite Task
Aligning P2P Agendas Bringing Stakeholders on-board
Procurement agenda • Spend Management • Supplier Base Rationalization • Supplier Assurance • Collaborative Innovation • Costs Out
Accounts Payable Agenda • Compliance • Control and Visibility • Operational Efficiency • Savings Realisation
Finance agenda • Financial Reporting • Cash Flow Visibility • Working Capital • Op. Stability, Risk • Business Support
Supplier Agenda • Customer Service • On-time Delivery • Receivables Optimization • New Customer Acquisition • Lost cost of service
Possible Solutions
Suppliers
Professional Services
Customer Legacy Systems e.g. Financial Systems, ERP
B2B Connectivity
Catalogs Purchase Message Exchange
Supplier Portal Scan and Capture Service
E-invoice Exchange
Accounts Payable Procurement
Sourcing Contract Management Requisition Creation
Requisition Approval Order Goods Receipt
Data Capture e-invoicing Invoice Pre-Matching Invoice Approval
Payment Management Travel Management Expense Management Archiving
Supplier Activation Services
Mobility
E-Invoicing
Workflow / Automation
Integration to multiple ERP’s / systems
Solutions for 100% electronic Invoices
Supplier
Supplier
Supplier
Buyer
Portal Invoices
E-Invoices
Paper & Email Invoices
Accounts Payable
Supplier Activation Service
Invoice Automation drives...
100% visibility of spend
Full PO coverage
T&E behaviour profiles
360◦ view of P2P operations
Accurate cash forecasting
360◦ view of supplier
Visibility of contract terms
Payment term performance
Visibility
100% e-Invoicing from Day 1
Intelligent Invoice Matching
More spend managed
Accelerated cost savings.
Managed Demand
Cash Flow Accuracy
Faster period closing
Controlled Travel & Expense
Reduced costs of AP/P2P
Control
Straight through processing
Federated P2P
Intelligent workflows
End-to-End P2P platform
Payment strategy execution
Regulatory /VAT compliance
anyERP™ integration
Compliance
Accurate working capital
Supplier discount capture
Cash flow & currency forecasting
Open, interoperable global trading network
Global Scan & Capture
Dedicated Supplier Activation
Flexible organizational modelling
Hybrid Deployment options
Agility
History • Founded 1985 • Consistently Ranked #1/
# 2 by analysts in P2P • 11 offices around the
world
Corporate Performance • Net sales $140m in
2011 • 1000+ employees • Partners in 30+
countries • >1m users at 1,600
customers
Our Open Network • 1.9MILL suppliers listed • >38m e-Invoices/POs in
2011 • €116 BILL annual spend • 110+ partners • 99.6% invoices
automated in 50 formats
Who We Are
Consistently rated as leading P2P Provider
Independent research confirms Basware as Invoice Automation leader
The Forrester Wave™: AP-EIPP, Q2 2008 A US survey of Electronic Invoice Presentment and Payment
The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings and comments. Forrester does not endorse any vendor, product or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.
Independent research confirms Basware as Invoice Automation leader
Consistently rated as leading P2P Provider
Independent research confirms Basware as eProcurement leader
The Forrester Wave™: eProcurement Solutions, Q1 2011 A global survey off eProcurement vendors
The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings and comments. Forrester does not endorse any vendor, product or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.
Working with more than 1600 international customers
Food / Beverage
Medical / Pharma / Biotech
Chemicals
Manufacturing
Professional Services
Services
Retail
Energy
Construction
Banking / Finance
Transportation / Logistics
Public Sector
A Basware Presentation
Presented by Dean Baxter [email protected] Basware Inc May 2012
Giving you the financial agility you need to run your business more effectively