Power of PAYBOX®
Companies Struggling to Reduce AP Costs
From the onset of the Great Recession, companies have focused like never before on reducing costs. Yet more than one-quarter (25.8 percent) of companies responding to a recent survey by Direct Insite report that their accounts payable (AP) costs have increased in the past year.
Some 22.9 percent of survey respondents indicated that their AP costs are "slightly" higher compared to the same time last year, while 2.9 percent stated that their AP costs are "significantly" higher.
The majority of respondents (55.7 percent) indicated that their AP costs were unchanged.
"These findings illustrate the tremendous costs and inefficiencies inherent in the paper-based invoice processes on which most companies still rely," said Direct Insite Executive Vice President and CTO Arnold Leap. "Only by eliminating these paper processes, and migrating to an electronic invoicing environment, will companies be able to move the needle in reducing their invoice processing costs."
Other key findings of the survey:
- 44.1 percent of companies indicated that the number of suppliers asking to send them electronic invoices has increased either "slightly" (41.2 percent) or "significantly" (2.9 percent) in the past year.
- 17.7 percent of companies stated that the number of suppliers offering early payment discounts has increased either "slightly" (14.5 percent) or "significantly" (3.2 percent) in the past year.
Direct Insite's PAYBOX® e-invoicing portal helps companies reduce costs, enhance supplier relations, and capture more early payment discounts. To learn more, email us.