REPORT: Eight Building Blocks of Invoice Automation, Supply Chain Finance & Discount Management

AP Automation – including Invoice Automation and Discount Management (IADM) initiatives need a framework to ensure that programs are approached on a strategic basis which bridges both the Supply Chain and Finance organizations. PayStream’s analysts have introduced such a framework to help enterprises implement “integrated” IADM and maximize benefits.
 
To achieve the long-term value of Invoice Automation & Discount Management (IADM), organizations need to adopt a strategy involving both Procurement and Finance and therefore initiatives should be approached at an enterprise level. So far, only a limited number of enterprises have stepped up to this challenge and are implementing what PayStream…

It’s sobering to think about the demise of Bear Stearns, the collapse of several regional banks, and the plummeting stock prices of larger financial institutions. Tech-savvy companies have discovered a relatively untapped revenue source – supplier electronic payments. 

PayStream’s analysts note that labor accounts for the vast majority of all invoicing costs, because of time spent manually creating and mailing invoices, answering questions, managing payment disputes, and correcting errors. Although it often goes unrecognized, another significant cost in accounts receivables is payment lag time. In large companies with high volumes, the processing cycle can last three weeks or more. Those delays are costly, both in terms of lost trade discounts and unearned interest on money that could have been invested during that time.

Today’s virtual invoice and payment solutions not only process payments, they can create electronic invoices from accounts receivable systems,…

Thanks to the ripple effect of the subprime mortgage crisis, today’s consumers are feeling a financial pinch like never before. Job losses abound, credit is tight, gas prices have topped $4 a gallon, food staples are priced like luxuries items – and many customers who’ve never before been late paying their bills are falling behind.

Those late and unmade payments, of course, put a crimp in business cash flow, and force companies to find a cost-effective way to increase revenues. As a result, many of them have discovered the benefits of virtual collections. Even those that may have previously shied away from full-scale debt collections, because of the cost and potential legal issues, are jumping on the bandwagon and quickly recouping their investments.

These highly customizable electronic collection solutions offer multiple payment channels (checks, PayPal, credit and debit cards) and contact…

We’ve all seen the credit card company ad that begins with customers dancing their way through the checkout line, only to be interrupted by the curmudgeon (or tennis geek) who insists on paying with outmoded paper payment. Everything screeches to a halt as the customers wait impatiently for a payment to process.

Similarly, companies are investing substantial resources in complex financial accounting software. Everything is going smoothly. International transactions occur at the rate of thousands per second. Companies interacting with each other in real-time across continents, and in board rooms across the country, companies talk passionately about their automated and improved efficiency.

But in the backroom, away from the view of the public, companies are mired in paper. Documents such as invoices, checks, credit applications, purchase orders, correspondence and even credit card numbers are sitting in file folder in desks, file cabinets or in storage.

In spite of…

Company: Orange County Public Schools

Implementation: PayStream’s Payment Process Analysis™

Industry: Education

Company size: 12th largest of 16,000 school districts in the United States

“Exceptions like missing GR’s are killing our productivity.” — AP Department

The problem

• Explosive growth in student population
• Entirely manual document management system
• Approval process inconsistent with current leading practices
• Limited visibility with current ERP deployment
• Missing available discounts
• Invoicing process costs 60% above industry average
• Poor communication between departments
• Poorly trained AP staff

The solution

• Conduct an automation assessment of accounts payable process
• Document metrics with PayStream’s methodology and benchmarking data
• Introduce document imaging technology to the system
• Exploit PayStream’s library of best practices across the industries
• Expand electronic payment options (P-Card, EFT & EDI)
• Apply workflow to enhance approval process and communication
• Specialize AP tasks and training

The benefits

• Scalable AP department to accommodate explosive growth
• Imaged documents only mouse-clicks away from all departments
• Invoicing costs in line with industry average
• Reduce exception handling commitment by 50%
• Efficient approval process from workflow
• Productivity gains from AP training and specialization
• Improve financials from

…

Healthcare providers are under increasing pressure to improve patient satisfaction. However, allocating the necessary resources to achieve these goals means that hospital administrators must seek greater revenue cycle process efficiency through cost cutting strategies and technology investments. Healthcare Document Management (HCDM) solutions are uniquely positioned to deliver key benefits to administrators and clinicians alike.

Hospital administrators and Revenue Cycle Managers are turning to HCDM solutions for process improvements and direct cost savings. HCDM delivers results through the replacement of manual, paper-based processes with more efficient, automated, computer-based processes.

HCDM is comprised of core technologies including document scanning, centralized electronic storage, and workflow automation. Healthcare industry innovators are deploying HCDM systems as organization-wide enterprise solutions, while others choose an iterative, department-by-department, model.