This webinar highlights findings from the Invoicing and Workflow benchmark study and unveils a core set of recommendations that follow Aberdeen's unique Best-in-Class Maturity Framework, which details the specific strategies, capabilities and technology solutions leveraged by top-performing enterprises to drive down the costs and cycle time associated with invoice-processing.

1. Accounts Payable: Best-in-Class
Strategies for Reducing Invoice
Processing Costs and Time
Christopher Dwyer
Research Analyst, Aberdeen Group
Nasreen Quibria
Senior Analyst, Aberdeen Group
Greg Collins
Relationship Manager, Esker USA

2. Agenda
 Introduction and Research Background
 Research Findings
 Best-in-Class A/P Strategies and Performance
 Recommendations for Action
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3. Speaker Introduction
Christopher Dwyer
Research Analyst, Aberdeen Group
Christopher Dwyer is a research analyst in Aberdeen's Global Supply
Management practice. He has extensive writing, editing and research
experience. He has contributed to and led research efforts focused on
complex categories, such as contingent labor, print management, and
T&E, as well as driven benchmark studies centered on the procure-to-
pay process. In 2009, in addition to leading Aberdeen's contingent labor
research, he has also co-led the Global Supply Management’s team
coverage in the areas of accounts payable (e-payables) and spend
analysis.
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4. Speaker Introduction
Nasreen Quibria
Senior Analyst, Aberdeen Group
Nasreen Quibria is a Senior Analyst at Aberdeen Group. Nasreen’s research spans
the financial value chain, including topics from e-payables, treasury and
payments, financial and operational risk management, to financial planning,
budgeting, and forecasting, and working capital management. Before joining
Aberdeen Group, she was Director of Payments at the Association for Financial
Professionals (AFP). Nasreen has a track record of leading successful initiatives in
financial services and technology industries. Nasreen was a key architect of the
Federal Reserve Bank of Boston’s Emerging Payments Research Group (EPRG).
Prior to the Fed, she was Director of Product Development and Management at
Eliza Corporation where she played a pivotal role in transforming a start-up
company to a profitable business. Nasreen holds a B.A. in economics from
Wellesley College and an M.B.A. from Boston College.
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5. Aberdeen’s History of e-Payables Research
2010 Invoicing and Workflow (April 2010)
E-Payables: A/P Rising (September 2009)
E-Payables: Electronic Payments (July 2009)
2009 E-Payables: Invoice Receipt and Workflow (May 2009)
E-Payables: A/P Strategies for Success (September 2008)
E-Payables: Electronic Payments and Fraud Prevention (June 2008)
2008 E-Payables: Invoice Receipt and Workflow (March 2008)
E-Payables: Solution Selection Guide (September 2007)
E-Payables: Accounts Payable Automation (March 2007)
2007
2006 Accounts Payable: Strategies for Success (December 2006)
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6. Aberdeen’s Research
o Aberdeen PACE Model
Methodology
 Pressures
 Actions
 Capabilities
 Enablers
o Strategies and Tactics
o KPIs – Usage and Specifics
o Follow-up Surveys
interviews
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7. Agenda
 Introduction and Research Background
 Research Findings
 Best-in-Class A/P Strategies and Performance
 Recommendations for Action
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8. Survey Profile
Company Size Job Titles
General Manager /
Other Staff EVP / SVP / VP
Small Large
(less than $50 (over $1 billion)
million) 14%
21% C-Level
23% Executive
14%
42%
31% 20%
35%
Manager
Director
Midsize
($50 million to
$1 billion
Survey of 152 companies worldwide
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9. Top Pressures Driving Companies to Focus on A/P
Lack of visibility into invoices / 57%
A/P document
Corporate directive to lower
invoice processing costs 43%
Need for better cash 29%
management
Difficulty managing archives 23%
of paper-based invoices
Need to reduce risk of fraud / 15%
abuse
Source: AberdeenGroup
Lack of visibility is a top concern of businesses…
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10. The Visibility Factor
5%
15%
No visibility
48% Real-time
Good visibility
Limited visibility
32%
Source: AberdeenGroup
Over half of companies have limited to no visibility into A/P processes
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11. Top Strategic Actions to Improve A/P
Automate invoicing processes 62%
Integrate e-payables with 31%
other systems
Centralize A/P processes 29%
Standardize IR&W processes 27%
Conduct internal assessment
of current A/P capabilities 27%
Source: AberdeenGroup
Companies are automating invoice processes
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12. Centralization of Core A/P Functions
Payment 79%
Reconciliation 49%
PO Issuance 45%
Scanning 36%
Indexing 35%
Approval 34%
Receipt 30%
Source: AberdeenGroup
Receipt and approval are the least centralized and biggest bottlenecks
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13. Impediments to A/P Improvement
Lack of internal support 39%
for change
Difficulty with integrating 37%
A/P and other systems
Non-standard nature / multiple 33%
formats of invoices
Lack of automation of 23%
exception / discrepancy handling
Securing executive support
for A/P transformation 21%
Source: AberdeenGroup
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14. Agenda
 Introduction and Research Background
 Research Findings
 Best-in-Class A/P Strategies and Performance
 Recommendations for Action
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15. Maturity Class Definitions
Definition of
Mean Class Performance
Maturity Class
Best-in-Class:
Top 20% $4.84 cost to process a single invoice
of aggregate 3.7-day cycle time to process a single invoice
performance scorers
Industry Average:
Middle 50% $18.27 cost to process a single invoice
of aggregate 14.2-day cycle time to process a single invoice
performance scorers
Laggard:
Bottom 30% $25.83 cost to process a single invoice
of aggregate 41.3-day cycle time to process a single invoice
performance scorers
Source: AberdeenGroup
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16. Best-in-Class A/P Capabilities
Best-in-Class All Others
Clear policies for invoice 59%
receipt-to-payment workflow 35%
Quick retrieval of invoice images 50%
40%
Standardized invoice receipt / 50%
workflow processes 38%
Enterprise-level visibility into A/P 48%
40%
Complete audit trails on demand 46%
29%
Executive support for invoice 46%
receipt / workflow automation 29%
Source: AberdeenGroup
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17. Best-in-Class Technology Utilization
Automated invoice receipt / 52%
workflow system 29%
Spend analysis 42%
23%
EIPP 32%
7%
Supplier portals 30%
14%
Best-in-Class
Digital signatures 24% All Others
20%
Supplier networks 24%
15%
Source: AberdeenGroup
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18. Business Case for A/P Automation
Definition of Maturity Class Best-in-Class All Others
Number of invoices processed per month 14,080 9,409
Value of invoices processed per month $67.8m $45.9m
Percent of invoices that are PO-based 63% 62%
Invoice processing cost (single) $4.84 $20.13
Annual invoice processing cost $817,644 $2,273,076
Annualized benefit of Best-in-Class
n/a $1,726,656
performance
Payments receiving early payment discount 8.8% 6.0%
Annualized impact of 1% gain in early
$164,795 $110,051
payment discount capture (at 2/10 net 30)
Source: AberdeenGroup
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19. Agenda
 Introduction and Research Background
 Research Findings
 Best-in-Class A/P Strategies and Performance
 Recommendations for Action
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20. Why Does A/P Automation Matter in 2010?
 Visibility, visibility, visibility
 Standardization of internal processes
 Leads cost containment efforts
 Link to other functional areas
 Spend intelligence
Source: AberdeenGroup
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21. Recommendations for Action
 Review current receipt and approval policies
and identify major program gaps
Source: AberdeenGroup
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22. Recommendations for Action
 Review current receipt and approval policies
and identify major program gaps
 Look to automation as a means of not only
improving A/P processes, but also catapulting
this function to a strategic level
Source: AberdeenGroup
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23. Recommendations for Action
 Review current receipt and approval policies
and identify major program gaps
 Look to automation as a means of not only
improving A/P processes, but also catapulting
this function to a strategic level
 Close the loop with data integration
Source: AberdeenGroup
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24. Recommendations for Action
 Review current receipt and approval policies
and identify major program gaps
 Look to automation as a means of not only
improving A/P processes, but also catapulting
this function to a strategic level
 Close the loop with data integration
 Utilize the A/P function to drive spend visibility
Source: AberdeenGroup
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25. They Quit Paper & Software
Esker is a recognized leader in helping organizations eliminate paper
and improve business processes with on premise and on demand
document automation solutions. Specializing in the Cash Conversion
Cycle, Esker helps organizations automate sales orders, accounts
receivables, purchasing, and accounts payable from end to end driving
productivity, efficiencies, and profits.
Esker Highlights
 Order to Cash and Procure to Pay market leader
 22 years of field experience, 240 employees
 More than 2.5 million users
 3,000+ SaaS customers world wide
They Quit Paper
 80,000+ document management servers installed world wide
 Over 3 billion pages processed each year
 25% of Esker’s employees are dedicated to product development
Esker Awards and Accolades
Included in “Cool Vendors in
Knowledge Support,” by Gartner.
2005 Codie Awards Finalist for “Best Document
Management Product or Service”
“Esker does the best job at linking capture with DOM. It considers capture
as important as creation and delivery and brings these together to address
pain points in sales order processing and invoice management.”
Patented received for Esker DeliveryWare Rules Engine
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26. Why SaaS Makes Sense for AP
1. Capital vs. Operational
 AP is a “non-revenue generating function”
 Lowers up-front investments (brings Enterprise solutions to SMB)
 Ability to execute an automation initiative with minimal IT support
2. Decentralized / Distributed Processes
 Scan and enter invoices remotely
 Expand approval workflow to all company locations
 Securely
 With audit trail
 No additional ERP licenses required
3. Control & Visibility
 Overcoming the Catch 22
 Additional headcount
 BPO – business process outsourcing
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27. Stages of AP Automation
 Package A: Paper based - Invoice archiving and indexing
 Package B: Imaging Enabled - OCR functionality
 Package C: Touch-less AP - Payment approval workflow
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28. Thank You!
Steve Smith
Vice President of Sales
Americas For more information on
Tel
Fax
608-828-6110
608-828-0100
Greg Collins
Accounts Payable Automation,
steve.smith@esker.com Sales Manager, Americas
please visit
Tel § 608.828.6000
Fax § 608.828.1000
http://www.apondemand.com
info@esker.com OR
Call us at 1-800-368-5283
Esker, Inc. § 1212 Deming Way § Suite 350 § Madison, WI 53717
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29. Q&A and Contact Info
Christopher Dwyer, Research Analyst
Global Supply Management, AberdeenGroup
chris.dwyer@aberdeen.com
617.854.5280
Nasreen Quibria, Senior Analyst
Financial Management and GRC, AberdeenGroup
nasreen.quibria@aberdeen.com
617.854.5379
For More Research Please Visit:
www.aberdeen.com
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