In
part 1, I mentioned 4 initial steps leading to successful AP automation. The
remaining 5 indispensable steps that you should consider are revealed in this
continuation post:
5. Choose an automation
provider
Once
you have developed a detailed AP automation strategy (based, on the information
from the 4 first steps shown in part 1 of this post), you should now be
prepared to select an automation provider. The provider selected must be able
to satisfy your business issues as well as meeting your requirements, such as
the technology required, the payment terms and discounts, etc. Insure that you ask
tough questions before purchasing that clarify the providers’ capacities as
well as their commercial terms.
6. Ask for a trial and
negotiate a contract
Requesting
a trial period is the best way to get real experience with the solution you
intend to buy, check its functionality and its compatibility to your business
processes.
Before
signing a contract, be aware of all providers’ commercial terms including the
implementation or license fees, annual subscription or per-transaction fees and
termination penalties.
7. Keep an open communication
line with your supplier
Normally,
an organization that provides AP
automation solutions has a wide range of companion products including other
automation tools such as document
capture and scanning products or workflow
and BPM products. Perhaps your company may consider other automation
strategies and utilize other products they provide, so you should keep in
regular contact with your supplier to build a solid, strong and long-lasting
relationship. Also, in order to obtain full benefit, they should be aware of
your automation strategy and your expectations such as integrating their ERP or
uploading electronic invoices.
8. Evaluate system
performance and benefits.
After implementing
the AP automation solution, you
should make an evaluation to compare the result of automation strategy and your
initial performance, learn from experience and improve it if necessary. Your
evaluation should include:
·
Percentage of invoices
ready to be paid on time.
·
Amount of time taken
to receive, approve invoices and deal
with invoice disputes.
·
Amount of time
required from AP and IT to manage the
system.
·
Number of invoices received electronically.
·
Most importantly, utilize
the ROI calculator shown in step 1to
identify savings.
9. Monitor your solution.
Only
when you can demonstrate its benefits should you implement an AP automation solution. Monitoring the
new process and the solution you are utilizing periodically will ensure that
you have a worthwhile investment. Determine if your provider offers an Advanced Capture + Workflow (Highest
Level Automation) solution. This type of solution
includes not only document capture automation of all invoice processes, but
also adds workflow software to aid in the routing of
documents, kickback of invoices to vendors and solving any issues. The
addition of digital workflow adds the ability to
monitor, track and report extensively
on the AP process.
Adherence
to these steps will assure a successful initiative. What is your current position
on the way to successful Accounts Payable automation? Contact
us now for additional advice from our experts!
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