Tipalti implementation ROI for a sample company in the manufacturing space.

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Manufacturing Co
The Case for Supplier Payment Operations
Automation
Prepared on: 03/03/2017

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What We Heard
• Increasing costs due to inefficient invoice processing
• Wasted time on payment reconciliation across systems
• Manual onboarding detracts from analysis and strategy
• Higher costs due to rejected payments and errors
• Time-intensive processes can’t keep pace with growth in
Suppliers and invoices
• Poor controls and compliance affect audits and increase risk
• Increasing calls due to poor visibility into payment statuses

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One System to Manage Global Supplier Payment Operations
Suppliers
Payer
The Desired State
Domestic & Global
Remittance
Suppliers
Vetting
Tax Form
Collection & Validation
Suppliers
Registration
Payment
Reconciliation
1099/1042-S
Preparation
Issue Handling &
Resolution
Suppliers
Communications
Payment
Instructions/Approvals

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Manufacturing Co
ROI Analysis

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Total Manual Hours Spent per Year
8,253 hrs
Blacklist / OFAC Screening: $23,077
Payment Execution: $76,154
Suppliers Communication: $34,231
Suppliers Onboarding: $3,173
Invoice Processing: $53,846
Payment Approval: $46,154
Payment Error Fees: $111,738
Payment Reconciliation: $69,231
1099/1042-2 Reporting: $11,538

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Savings Analysis Manufacturing Co
+
Agility
 Focus on cash flow analysis and
optimizing productivity
 Expand to other markets, subsidiaries,
etc. more efficiently
Scalability
 Eliminate 80% of current AP workload
 Don’t need to staff up AP as you grow
globally
Compliance
 Avoid compliance penalties
 Strengthen tax, regulatory, and
financial controls
Benefits
ROI Improvement
Net Savings with Tipalti Cost Included
Year 1
Year 2
Year 3
12.4x
17.6x
22.7x
3-Year ROI
Net Savings With Tipalti Cost Included
$1,281,950
Payback Period
Implementation Time Included
0.00 months
Breakeven Analysis

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Area Business Benefit
Self-Service Onboarding
 Remove administrative overhead from strategic finance professionals
 Improve data quality
 Eliminate payment error costs
Digital Tax Form Collection
 Protect the company against tax non-compliance and associated cost
 Remove administrative overhead from strategic finance professionals
 Ensure you are only paying legitimate suppliers
Invoice Processing  Reduce likelihood of costly human errors with OCR
 Reduce paper invoices by 40%+
OFAC & AML Checks  Protect the company against non-compliance
 Protect from fines and penalties
Mass Global Remittance
 Execute effectively on international growth aspirations
 Enterprise-grade financial controls
 Minimize or eliminate checks (leading source of fraud)
Proactive Communication  Minimize administration of valued staff
 Provide transparency around payments to Suppliers
Payment Reconciliation  Accelerate financial close
 Improve cash forecasting
 Foundation to scale the business while maintaining a lean finance department
 Minimize risk exposure to the company
 Focus finance staff on strategic initiatives
Tipalti’s Impact to the CFO

8. 9
Solving Partner Payment Operations
99%+ Retention • $2.75B+ in Transactions Managed Annually • 1.5M+ Payees