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Integrating Procurement & AP - Trends, Drivers, & The Role Of Technology
This document summarizes a presentation on integrating procurement and accounts payable processes. It discusses trends driving companies to improve procurement, including a desire to reduce costs and increase compliance. Data from a survey finds that companies are exploring electronic invoice solutions to achieve these goals. The presentation outlines maturity stages for purchase-to-pay processes and identifies metrics that distinguish high-performing companies, such as lower defect rates and processing times. Lessons from innovative companies emphasize setting clear goals, using technology to support strategies, integrating purchasing policies, and developing strategic supplier relationships.
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Integrating Procurement & AP - Trends, Drivers, & The Role Of Technology
- 1. Integrating Procurement &AP Trends, Drivers, & The Role Of Technology August 21, 2013 ©2013 Coupa Software, Inc.
- 2. ©2013 Coupa Software,Inc. Henry Ijams Managing Director PayStream Advisors, Inc. Tony Wessels Vice President Coupa Jack Miles CPO Emritus Former: CIGNA, AIG, CA
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- 4. Most Active CloudPlatform ©2013 Coupa Software, Inc. 350+Customers 40+Countries 17+Languages 150+Currencies 500,000Daily Transactions 99.99+%Uptime 650,000Suppliers 150,000Active Users
- 5. Customer Highlights Retail FinanceMfg Health Care High Tech Real Estate
- 6. Coupa Cloud Platform ©2013Coupa Software, Inc. InvoicingExpenses
- 7. PAYSTREAMADVISORS Research and AdvisoryServices for Financial Operations: - eProcurement - AP Automation - P2P Peer Benchmarking - Electronic Payments - T&E Expense Management - eBilling & Receivables Management - PayStream INNOVATE Purchase to Pay Summit www.paystreamadvisors.com
- 8. 7 Session Overview • Stateof Procurement • Integrating Procurement and AP • Metrics to Drive Performance • Secrets of successful procurement management 7
- 9. 8 PayStream’s eProcurement Survey •PayStream’s Q1 2013 Electronic Procurement survey of over 150 account payable and procurement professionals at U.S. based enterprises revealed strong opportunity Key Insights: • Procurement professionals are actively exploring electronic Invoice solutions with the goals: • Reduced processing costs, increased spend visibility • Increased spend policy compliance and lower prices • improved vendor satisfaction • Reduction in exceptions and discrepancies
- 10. 9 Structure of Procurement Operations Q:Which organizational structure best describes your procurement function?
- 11. 10 State of ProcurementAutomation Q: What Procurement Automation tools do you currently use at your organization?
- 12. 11 What’s Holding YouBack? Q: Why haven’t you adopted eProcurement or Procurement Automation solutions at your organization?
- 13. 12 Pain Points inProcurement Q: How much pain is experienced within your organization due to each of these Procurement areas? (1 is no pain, 5 is high pain)
- 14. 13 What are thebenefits? Top goals electronic invoicing 21% and electronic payments 22% Q: What benefits have you gained/expect to gain from your procurement automation?
- 15. 14 Henry To PutIn Matching Chart Electronic Invoice Success Q: What percentage of your suppliers submit electronic invoices?
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- 17. 16 Top P2P PerformanceDrivers Metric Laggards Average processing time from invoice receipt to approval 45 days Average processing costs (combination of paper and electronic) $15.00 Percentage of self-managed transactions 10% Percentage of orders with a discrepancy or defect 25% Percentage of Touch-less Transactions 18% Mainstream Innovators 23 days 5 days $6.70 $2.36 20% 60% 16% 4% 40% 75%
- 18. 17 17 Stage 1 Stage2 Stage 3 Stage 4 - P2P Leadership has defined P2P Vision - Well defined & Controlled Process -Centralized Procurement & Payables - Defect rates <7% - Shared Goals & Metrics - Automated Purchases & - Online Catalogs > 50% Touchless Transactions - Authoring shifted to departments - Automated ordering/fulfillmen t - 70% electronic transactions - Defect rates <4% - Highly automated environment - >50% of transactions self- managed - Local control for most services - Defect rates <2% - >75% Touchless PayStream P2P Maturity Stages - Order Cycle Times Avg. less than 2 days - Defect rates <5% PayStream Purchase to Pay Maturity Assessment Metrics Touchless Collaborative Vision Driven
- 19. 18 Lessons from theInnovators 1. Well-defined goals & vision a. Leadership and senior management buy-in b. Cross-functional alignment and support c. Clear understanding of the value proposition 2. Technology to Support eProcurement and Purchase-to-Pay Strategy a. Concise objectives of how technology drives achievement of goals b. Multi-year automation roadmap c. Performance Drivers to measure progress 3. Integrated Purchasing Policies a. Policies are dynamic and relevant b. eProcurement System supports policy communications, alerts and enforcement 4. Development of Strategic Supplier Relationships a. Foster long-term relationships with increased visibility to company needs and goals b. Spend is tracked and consolidated c. Suppliers are treated as a strategic partner and resource
- 20. 19 Define your project •Develop measurements – Compare to others (Peer comparison is best) • Idea statements – State the problem – State the objectives & the effect of the project • Outline your long term goals – Delineate steps between current & future state – What kinds of steps make sense? • Economically • In terms of your work process • Start by measuring a few items that create a stimulus for change
- 21. 20 Quick Tips ToKeep Up to Date • Take advantage of free resources like: – Technology Insight Reports PayStream Research Vault – PayStream tools such as the Cost Per Invoice Calculator • Get involved! PayStream’s 2013 INNOVATE Purchase to Pay Conference is September 16 – 18th, 2013 in Charlotte, NC. – Bonus offer: use the code WEB13 for $50 discount
- 22. ©2013 Coupa Software,Inc. Charlotte, NC September 16-18 Webinar attendee discount code: WEB13 Get $50 Off
- 23. San Francisco, CA Columbus,OH New York, NY Dallas, TX Sydney, AUS Raleigh, N.C. Chicago, IL London, England Toronto, CAN
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Editor's Notes
- #4 We are by far the most active Saas Platform on the planet in the area of spend optimization. We have 300+ customers operating in over 40 countries, using the platform in over 17 languages and 150 currencies… well over 650,000 suppliers today, 150,000 daily active users, 1/2 million daily transactions and unprecedented uptime. If you become a customer of Coupa you are joining a subscription platform where you can can get to leverage all customers in the system
- #5 We have over 300 customers in over 40 countries across the world. Here’s a smallsampling of customers are saving millions every day. They range from medium size to extremely large. From niche players to household names. The bottom line is they selected Coupa and it works. Pandora is here today to talk about it. What makes them all the same is customer success. We at Coupa are not interested in customer satisfaction. We are interested in customer success.
- #6 Coupa is the only solution on the market to capture the three types of spend and because of that we are now able to get our arms around literally tens of billions of dollars in spend for our customers. Procurement, Expense Management, and Invoicing are the core of the Coupa Platform[CLICK] We surround that transactional core with powerful modules that increase your compliance, efficiency, and visibility. With them you can monitor your spending in real time with rich analytics and reports.Again we are the only application suite that is build on a single code base. So when you engage with Coupa all of these modules not only work together, but they require absolutely no integration work to hook one to another. They have a common user experience, relationship model, common state model and responsibility model, so everything works together seamlessly.
- #7 But before we do that…Did you know that The IFO conducts a variety of research?Here’s a quick list of our studies completed in 2012.All studies are available to IFO members FREE – as a benefit of your membership!Just go to “resource center” and then ‘thought leadership’ after going to the IFO’s home page – or see direct link on the bottom of this slide.
- #21 Cloud Payments are forecast to grow from $4.7B in 2011 to $10.6B in 2016, generating a CAGR of 17.8% worldwide.