Accounts Payable pros are accustomed to dealing with a wealth of challenges. But now one curve-ball threatens to change much of what they currently consider to be their usual duties.

Companies can save significant amounts of money by automating many of the time-consuming functions of Accounts Payable, according to Aberdeen Group’s Advancing Accounts Payable Automation report.  Main drivers behind the slow shift to automation are the twin benefits of reducing A/P costs and improving departmental performance.

The report trots out plenty of interesting statistics that can make even the most cynical managers sit up and take notice. For example, A/P pros were asked to name the top drivers on the road to improvement:

• Lower costs for invoice processing — 61%
• Reduce the time it takes from order-to-pay — 50%
• Make it easier to predict expenses — 28%
• (Those surveyed could give more than one answer.)

The real impact of automation efficiency is exposed by the stats compiled of the cost of processing an invoice:

• Best in class — $2.00
• Industry average — $10.54
• Foot draggers — $58.09

Another part of the beauty of automating these processes, supporters point out, is the increased visibility into exactly how suppliers are holding up their end of the bargain. Thirty-five percent of those businesses report success in judging supplier performance. Meanwhile, those who still rely on manual processes admit they’re only seeing 15% of the action.

Tags: Accounts Payable, invoice processing, supplier performance