Findings from the Blue Hill Research Accounts Payable Financial vs. Operational Savings Report. Download the full report here: http://www.taulia.com/en/resources#ufh-i-31002298-whitepaper-blue-hill-research-financial-vs-operational-savings-true-scale-in-ap-improvement

1. FINANCIAL OPERATIONAL SAVINGS:
True Scale in AP Improvement
FINANCIAL OPERATIONAL SAVINGS:
True Scale in AP Improvement
vs.
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$45,825/FTE1
+1
+1
+1
+1+1
+1
+1
+1
* FTE: Full-time equivalent* Dynamic discounting savings from addressable spend
1 This figure comes from the Robert Half 2014 Salary Guide for financial positions, with a 30% upward adjustment to account for non-salary employment benefits.
0.1~0.2% rate
FINANCIAL SAVINGS OPERATIONAL SAVINGS
Pay approved invoices early
in exchange for a discount
Reduce headcount and
automate processes
HOW TO
SAVE
$1,000,000
!!!
-$1M
ALREADY PAID!
LET’S COMPARE
Offer early payments on
a billion dollars in spend
Reduce 20 FTEs
Even with the most conservative 0.1% rate, each $50 million of addressable spend can drive the same savings
as eliminating one FTE, and each $1 billion of addressable spend can save a million dollars.
AFTER 12 YEARS
LET’S TALK SUPPLIER PARTICIPATION
5 10 15 20 25 30 35 40
0.1
0.2
0.3
0.4
0.5
Energy Client
A discount rate of 0.5%
was captured with 40% of
invoices offered for early
payment accelerated.
Packaging Client
A discount rate of 0.19%
was captured with 9% of
invoices offered for early
payment accelerated.
A
B
Discount
Rate (%)
Rate of Supplier Accepting Accelerated Payments (%)
Clerical
FTEs
2002 2014
24 5
2002-2014
ESTIMATION
CUMULATIVE LABOR
SAVINGS
$5,819,775
CUMULATIVE DISCOUNT
SAVINGS
$184,000,000
CASE STUDY
SAVING TYPES
Through properly educating suppliers on the benefits of the self-service and early payment portal,
and ensuring all services are free, these Taulia clients have ensured that the majority of their
suppliers enroll, and actively engage in the tool.
Increasing the number of suppliers who accept accelerated payment helps boost overall discount capture rates.
121 2,289
Invoice
/FTE
/Day
1 42
Discount
Savings
(Million)
$$
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
Let’s take a look at the improvements a large US utility achieved after
implementing an electronic invoice and dynamic discounting solution.
Looking at 2014 alone, the company would need to reduce their headcount by 917 FTEs in order to equal the
amount of money gained through discount savings — 37 times the number of staff they started with in 2002.
$( = 1 staff, = 121 invoices, =1 million )
Spoiler Alert They’ve saved over $180 million in discount capture.
REPORT HIGHLIGHT
RESIST THE URGE
TO FOCUS ON
LABOR REDUCTION
FRAME DISCOUNTS
IN TERMS OF
INCOME
For organizations looking to maximize the value of invoice processing,
Blue Hill recommends that you
Revenue
Discount
Income
95%
81% 68%
58%
94% 90%
Healthcare
Food & Beverage
Energy
Textile Manufacturing
Energy
Food & Beverage
Portal
Enrollment
Rates
Discount
Capture
Rates
MOVE TO
ELECTRONIC
INVOICING
INVOICE
APPROVED
APPROVED
APPROVED
APPROVED