Accounts Payable Automation - Do This! Not That!

On:
Tuesday, July 31, 2012

Do This! Not That!

Accounts payable (AP) efficiency and effectiveness can have far-reaching consequences across your enterprise. It can impact your costs, ability to capture early payment discounts, vendor relationships, and ability to manage funds. That’s why it’s so important to get your AP automation projects right.

[EXCERPT]

Below are the most common mistakes that organizations make when deploying AP technologies — and what they should have done instead. Following these strategies will help keep the business case for your AP automation projects on track — no matter where you are in the process.

DO THIS:
Line-up early senior-level support from treasury and purchasing
NOT THAT:
Go it alone

DO THIS:
Keep in mind that no one knows your organization’s AP processes better than you
NOT THAT:
Believe everything consultants say

DO THIS:
Don’t be afraid to ‘think outside your box’
NOT THAT:
Resist change

DO THIS:
Diagram your process flows as simply and succinctly as possible
NOT THAT:
Over-complicate things

DO THIS:
Use automation as an opportunity to review how you do things in AP
NOT THAT:
Automate all of your existing processes

DO THIS:
Test! Test! Test! Ask vendors whether they will do a proof of concept
NOT THAT:
Assume a vendor’s demo will translate to your environment

DO THIS:
Make sure your solution’s security tools are functional, practical and adaptive
NOT THAT:
Believe everything IT says

DO THIS:
Use a phased implementation approach
NOT THAT:
Go for the “Big Bang”

DO THIS:
Involve your IT staff early in the automation process
NOT THAT:
Wait until you begin rolling out your solution to engage IT

DO THIS:
Review your supplier master long before rolling out your solution
NOT THAT:
Assume your supplier master list is “clean”

DO THIS:
Establish a supplier adoption committee with weekly KPIs
NOT THAT:
Let the chips fall where they may

DO THIS:
Emphasize to your suppliers how e-invoicing will benefit them
NOT THAT:
Tell them how much money you will save

DO THIS:
Offer suppliers options for submitting invoices electronically
NOT THAT:
Force them to join another supplier network

DO THIS:
Perform supplier segmentation analysis for an on-boarding campaign
NOT THAT:
Treat all of your suppliers the same

DO THIS:
Consider mandating e-invoicing for all new supplier relationships and renewals
NOT THAT:
Wimp out

DO THIS:
Negotiate payment terms as part of your e-invoicing initiative
NOT THAT:
Lose sight of payment terms

Blog