What makes an AP department best-in-class? Each year, Ardent Partners puts together their “Metrics that Matter” report on the metrics that organizations use to measure success within accounts payable that make them top-performing AP departments.
We’re highlighting Ardent Partners’ research that reveals the aspects of automation utilization that make AP departments best-in-class.
- Invoice Processing Costs: According to Ardent Partners, the 20 percent of companies with the lowest average invoice processing costs and the shortest average invoice times are considered the best of the best in accounts payable. Invoice processing costs are the major benchmark that AP departments use to measure achievement and reflect their efficiency and effectiveness. Ardent Partners’ research found that best-in-class organizations utilize process automation to a point that they experience invoice processing costs that are six times lower than companies that don't use automation.
- Electronic Payments: The top-performing AP departments also use automation to improve invoice processing time, resulting in a processing time that is three times faster for a single invoice than companies without automation.
- Invoice Exception Rates: Invoice exceptions are the bane of most AP professionals’ existence, and negatively impact efficiency. However, best-in-class AP departments have used automation to combat this, resulting in a 57 percent lower exception rate than other enterprises.
- Touchless Processing: Human intervention is what slows down invoice processing. When an invoice is received, approved and processed manually, efficiency greatly declines. But when companies use touchless processing, like MetaViewer’s Touchless Invoice Processing, they experience a rate of touchless invoices that are 3.4 times higher than companies that do not automate.
Today’s AP departments are utilizing automation at a higher rate than ever, and it’s paying off through gains of efficiency, effectiveness and cost savings. Are you ready to become a best-in-class AP department? We think MetaViewer will help you get there! Learn more about how our clients have created top-performing AP departments at https://www.metaviewer.com/.