LIVE WEBINAR Metrics that Matter Identifying KPIs & tracking progress toward extraordinary AP
THE BUXE Company
You can’t MANAGE what you don’t MEASURE THE BUXE Company
Why do we need metrics? Monitor progress Identify areas for improvement Reveal efficiencies Track team performance Support the business case for AP automation THE BUXE Company
POLL QUESTION Which is your most important performance metric? 15% 1. Percentage of invoices automated 19% 2. Cost per full time employee 21% 3. Invoice processing time 16% 4. Cost to process an invoice 28% 5. Other THE BUXE Company
Five steps to an efficient metrics system S pecific Define success M easurable SMART goals A ttainable Align your goals with strategic objectives R elevant Prioritize your goals T imely Get team buy-in THE BUXE Company
POLL QUESTION What percentage of invoices are currently automated in your AP department? 14% 1. Less than 10% 30% 2. 10% - 29% 16% 3. 30% - 49% 35% 4. 50% - 80% 14% 5. More than 80% THE BUXE Company
48% Which KPIs should I start with? 47% 40% THE BUXE Company
THE BUXE Company
COST per invoice THE BUXE Company
CURRENT TIME IN TIME IN MINUTES COST IN TIME STEP ROLE COST IN TIME MINUTES WITH GOBY WITH GOBY Receive, open envelope, scan low-level 10 $5.00 1 $0.50 Manual Coding mid-level 5 $3.33 0 - Review of invoices for quality mid-level 5 $3.33 1 $0.67 Import of data into ERP mid-level 5 $3.34 1 $0.67 Total Cost with The ROI Total Cost Now: $15.00 $1.84 Goby: Total Monthly Cost Breakdown in time at 5,000 $9,200 Invoices with Goby: Goby Software Fees of $10,500 $2.10/invoice* at 5,000 Invoices: Total Monthly Cost in Time at Total Monthly Cost in Time at 5,000 invoices: $75,000 $19,700 5,000 invoices + Goby Fees: Goby Fees: $2.10/invoice* // Implementation: $39,250 14,200,000 savings per month: $55,300 $663,600 Total anticipated Total anticipated carbon film resistors savings per year: THE BUXE Company
Cost per invoice Share of e-invoices received $13.09 requiring no manual intervention Low <10% Limited 10%-29% $8.33 Moderate 30%-49% $7.37 Significant 50%-80% High >80% $5.56 $4.02 Low Limited Moderate Significant High Level of Automation THE BUXE Company *IOFM 2019 Benchmarking study
Invoice processing TIME THE BUXE Company
There’s a better way to process an inv nvoice Nice Sent via 1 postal service ACME location #17369 ACME 99 S. Platinum Dr. 2880 Sand Fork Road Beverly Hills, CA 90201 Millersburg, IN 60606 Received at 2 mail room Manually 4 approved Manually 3 coded Manually 5 digitized THE BUXE Company
Invoices per FTE THE BUXE Company
Invoices per FTE Share of e-invoices received requiring no manual intervention Low <10% Limited 10%-29% 19,403 Moderate 30%-49% 17,723 Significant 50%-80% 14,224 13,912 High >80% 10,763 Low Limited Moderate Significant High THE BUXE Company Level of Automation *IOFM 2019 Benchmarking study
On-time PAYMENTS THE BUXE Company
THE BUXE Company
PERCENTAGE of straight through processing (STP) THE BUXE Company
THE BUXE Company
Duplicate INVOICES THE BUXE Company
PERCENTAGE of early pay discounts captured THE BUXE Company
POLL QUESTION What are your department’s biggest challenges? 1. Reducing manual processes 22% 2. Mitigating risks 12% 3. Increasing transparency 20% 4. Improving data accuracy 50% 5. Unsure / Other 23% THE BUXE Company
Rules of the road Have a system in place for tracking KPIs Ensure consistency Teamwork makes the team work Hold staff accountable Develop benchmarks Celebrate! THE BUXE Company
POLL QUESTION How many invoices do you process per month? 1. Less than 500 45% 2. 500 - 4,999 24% 3. 5,000 - 14,999 14% 4. 15,000 - 24,999 5% 5. 25,000 or more 13% THE BUXE Company
Leveraging tech to track KPIs THE BUXE Company
THE BUXE Company
THE BUXE Company
THE BUXE Company
QUESTIONS? THE BUXE Company
St Stay in in touch uch! Helee Lev Chief Revenue Officer hlev@gobyinc.com 847.208.3876 www.linkedin.com/in/helee-h-lev THE BUXE Company
Thank you! Thank you! Shameless plug: #AutomateThis
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