Industry Report: Majority of Accounts Payable Orgs Can Reduce Costs by up to 80%

  Industry Report: Majority of Accounts Payable Orgs Can Reduce Costs by up to
  80%

  New market research shows most accounts payables organizations are lagging
  behind in automation at a time when they're increasingly under pressure to
         contribute strategically to enterprise financial operations.

Business Wire

SAN FRANCISCO -- June 30, 2014

Tradeshift, 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 professionals.

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outdated technologies, the report shows that changes are happening. 37% of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 business intersection.”

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 forward.”

For a copy of the complete Ardent Partners report, please visit:
http://tradeshift.com/resources/epayables-2014-the-quest/

For 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/.

About Tradeshift

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

Contact:

Media:
Tradeshift
Peter Adams, 415-794-5861
pfa@tradeshift.com
or
Horn Group for Tradeshift
Katie Uhlman, 415-905-4059
Katie.uhlman@horngroup.com
 
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