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Industry Report: Majority of Accounts Payable Orgs Can Reduce Costs by up to 80%
|By Business Wire
|June 30, 2014 03:49 PM EDT
the fastest growing business transaction and collaboration platform,
today announced the findings of a market research effort entitled “ePayables
2014: The Quest”. This independent research report seeks to present
a comprehensive, industry-wide view into the quickly evolving nature of
accounts payable (AP) functions by drawing on the experience,
performance, and perspective of approximately 200 AP, finance, and other
The report notes that the top concerns for accounts payable groups are
around reducing invoice processing costs and efficiency. These issues
are exacerbated by the fact that 70% of invoices within enterprises are
still manually received and processed, which adds significant costs and
slows down access to critical information.
Though many AP operations are largely stuck using paper based processes
and outdated technologies, the report shows that changes are happening.
37% of respondents said it was “very likely” that they would move to a
largely automated AP process in the next two to three years.
These changes are happening as AP begins to transform its role into a
more strategic component of financial operations focusing on value
adding activities as opposed to administrative tasks. The discussion is
no longer whether to automate AP but when a solution can be deployed how
quickly it can be mastered.
As noted in the report “...the speed of business today requires a
different level of engagement and alignment with trading partners than
what was once required. Leveraging the collective strength of a supply
chain to the benefit of all participants has become the hallmark of the
agile and progressive businesses who understand that an increasing
dependence on third-party partners and suppliers is not just an
inevitability, but a pre-condition of success.”
"Best-in-Class accounts payable groups have shown that a high level of
performance can be unlocked by leveraging technology,” said Andrew
Bartolini, chief research officer, Ardent Partners. “The opportunity is
compelling and we expect, over the next few years, to see more AP groups
initiate technology initiatives that are designed to transform their
operations from generally inefficient and clunky functions to a more
strategic, automated, and well-oiled machines that sit at an important
Additional key findings of the study include:
The average cost to process an invoice is approximately $14.21. The
report notes that introducing AP automation can potentially reduce
costs by 60-80% as evidenced by Best-in-Class enterprises who report
costs around $2.42 per invoice.
Top performing AP operations are able to process an invoice in
approximately 3.7 days whereas it takes others over 17 days.
55% of respondents are planning to implement an e-invoicing solution
over the next 2 years.
Said Christian Lanng, CEO of Tradeshift, “What still confounds me is
that despite advances in payment technology, like contactless on the
consumer side, enterprise business payment processes are stuck in the
past. Most companies are still using outdated invoicing procedures, such
as manually sending out invoices, track transactions and keeping a
ledger. If you want your company to survive and thrive, you must disrupt
outmoded operations in order to adapt to fast-changing needs and remain
competitive. This frees up the payments in the pipeline, allowing you to
invest in other areas of your company, further propelling your business
For a copy of the complete Ardent Partners report, please visit: http://tradeshift.com/resources/epayables-2014-the-quest/
more analysis of the report’s findings visit Tradeshift’s blog.
About Ardent Partners
Ardent Partners is a Boston-based research and advisory firm focused on
defining and advancing, the accounts payable, procurement, and supply
management strategies, processes, and technologies that drive business
value and accelerate organizational transformation within the
enterprise. Founded by Andrew Bartolini, Ardent also publishes the CPO
Rising and Payables Place websites. Register for access to Ardent
Partners research at ardentpartners.com/newsletter- registration/.
Imagine a place where all companies, big and small, come together to
work, collaborate and transact. Now stop imagining and start
participating. Tradeshift is the single, shared and open platform
connecting buyers and suppliers easily and without limitation. Launched
in 2010, Tradeshift connects 500,000 companies across 190 countries,
with over ten thousand more joining every month. Businesses on the
platform include DHL, the National Health Service (NHS), French
Government, CBRE and Vestas Wind Systems. Tradeshift was awarded Best
Enterprise at The TechCrunch Europa awards and Most Innovative Solution
by Financial-I. TechCrunch also recognized it for “Kicking Ass
Globally”. Tradeshift is a global business, headquartered in San
Francisco with offices in Copenhagen, London, Suzhou and Tokyo. Find out
more at http://tradeshift.com
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