Supply Chain Logistics News / Supply Chain News / 3PLs & 4PLs / Risk & Compliance / Economic Development

Study: Key Trends in e-Payables, Best Strategies

Basware, a provider of e-invoicing and purchase-to-pay solutions, has supported an independent study by Ardent Partners, e-Payables: The Quest. The firm polled financial executives across the globe to reveal that the top priority of AP organizations is to reduce costs, while improving AP reporting and analytics, as well as gaining visibility into payment data follow closely behind. Based on these priorities, the adoption of e-invoicing and business commerce networks is expected to surge in the coming years.

”At Basware, we’re continuously working to take the pulse of the industry so we can meet evolving customer needs,” said Robert Cohen, vice president, North America, Basware. ”Our sponsorship of Ardent Partners’ industry-leading research into the state of e-payables exemplifies this commitment and provides strong evidence that the need for AP automation is growing as companies look to achieve critical visibility and control of their AP operations and effectively manage their cash and working capital,” Cohen added.

According to the study, while 29 percent of companies are currently using e-invoicing, adoption is expected to increase significantly, with 55 percent of organizations planning to implement it within the next two years. Similarly, the 19 percent of companies currently using business networks to submit e-invoices and e-payments is expected to grow to 41 percent within the next two years. The benefits companies will gain from transacting, collaborating and communicating with trading partners digitally is driving this growth.

ePayables: The Quest, underscores that a connected purchase-to-pay process and automation drive key value throughout the AP organization. The report identified several key performance benefits that differentiate best-in-class organizations, including:

• Performance – There is a big discrepancy between best-in-class organizations and their peers in AP performance. Best-in-class organizations can process an invoice in 3.7 days compared to 17.1 days for other organizations. The average processing cost is $2.42 per invoice for best-in-class organizations, which is more than seven times lower than other organizations.

• Straight-through processing – The average best-in-class company processes half (50.3 percent) of its invoices without human intervention, compared to slightly more than 10 percent for other organizations.

"AP's potential to positively impact working capital and the drive savings across the purchase-to-pay process stand as two catalysts to launch a transformation initiative," said report author, Andrew Bartolini, Chief Research Officer, Ardent Partners. "The level of performance that best-in-class enterprises have been able to achieve in these areas is a testament to the potential available to other AP operations. The time for action is now. The untapped opportunities that exist within greenfield AP operations are causing them to be scrutinized more than ever before.”

Some of the key strategies for achieving excellence in AP and e-payables that the study identified, include:
• Create a roadmap for AP transformation
• Sell the vision to stakeholders and suppliers
• Establish or enhance key performance indicators. The four key metrics AP departments should measure include: efficiency, connectivity, cash management and compliance
• Map AP metrics to top business objectives

The ePayables: The Quest report includes benchmarks, analysis, and recommendations to help finance leaders improve their operations and performance. The report is available by contacting robert.cohen[at]basware.com.

You must login or register in order to post a comment.



Image Galleries

Five Wearable Manufacturing Technologies of the Future

Video applications, Employee Monitoring, Field service, Plant monitoring, Improving employee safety.

For more manufacturing insights, visit www.exactonline.com.



Assurance of Supply: A Top Concern for Manufacturers

Every manufacturer has an assurance of supply problem to some extent due to the complexity of global sourcing. For years, manufacturers were blessed with high margins but margins have grown paper thin. You can’t fill up your distribution centers with excess inventory – not only is there a cost factor but the pace of business and consumer buying trends causes goods to quickly turn obsolete. Assurance of supply provides the speed and agility that is essential to being able to compete in today’s market.


Speaker info: Diane Palmquist, VP Manufacturing Industry Solutions


More Podcasts

World Trade 100 Magazine

wt100 cover december 2014

2014 December

Check out the December 2014 edition of World Trade WT100, featuring our cover story on Air Cargo, The Alliance Awards, plus much more!

Table Of Contents Subscribe

Transportation Capacity

As peak season has gotten underway, what is your experience with transportation capacity?
View Results Poll Archive


World-Class Warehousing and Material Handling, 1st Edition

Filled with proven operational solutions, it will guide managers as they develop a warehouse master plan, one designed to minimize the effects of supply chain inefficiencies as it improves logistics accuracy and inventory management - and reduces overall warehousing expense.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


Use our interactive maps to locate service providers across North America.Interactive Map

Logistics Development Partners 

IWLA Members