The ROI for AP Automation

Industry benchmarks reveal that the business case for AP automation is more compelling now than ever before. Companies are now processing a record number of invoices - nearly 500 billion worldwide - and that number is expected to grow by 2 to 3 percent annually per some studies. In addition, many organizations are processing invoices manually at a cost that can average over $15 per invoice according to an Ardent Partners' Report. Direct Commerce(R) client data indicates that AP-automated, electronic invoicing can be lower than $0.50 per invoices. This represents a 98% reduction in cost.

Organizations that implement AP automation see reduced processing costs. Furthermore, these organizations extend their return on investment over the longer term by selecting an AP automation solution that provides:

  • Streamlined and efficient procure-to-pay (P2P) processes with analytical tools to accurately track and benchmark operational performance
  • A platform with easy-to-use treasury management tools for optimizing cash flow and gaining more supplier discounts
  • A centralized database which multiple departments can use to access information in a way that improves visibility and reporting across the organization
  • High flexibility so team members can be redeployed to roles where they can work more efficiently at higher value activities to improve productivity

So where does a company that is interested in eliminating tedious manual tasks and improve process stability start? Implementing these two best practices can deliver quick, visible, and significant return on investment:

  1. Supplier portal that offers suppliers self-service access to information on POs, invoices, and payment status, plus enables centralized electronic communication to dramatically reduce support costs
  2. Electronic invoicing integrated into the supplier portal to automate delivery of invoices from suppliers

These software-as-a-service (SAAS)-based solutions can deliver immediate savings. Once deployed, additional technologies such as dynamic discounting and workflow tools, can easily be added to create opportunities for long-term digital transformational change, delivering even more value.

Conservatively, how much could you organization save by implementing AP automation? Check out the AP Automation ROI Overview Worksheet on page 9 of our eBook The Business Case for AP Automation. It provides a simple formula for calculating your organization's conservative and realistic total savings.

If you have any questions, please contact us at sales@directcommerce.com for a demo of our platform.


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