Best Practice Report

Best Practices: Invoice-To-Pay Process Automation

November 19th, 2008
DJ
Duncan Jones
With contributors:
Christine Ferrusi Ross , Philipp Karcher

Summary

Accounts payable electronic invoice presentment and processing (AP-EIPP) applications help companies automate their invoice-to-pay (I2P) processes. Inefficient manual processing can cost $20 or more per invoice, but companies can cut this to $5 or less using AP-EIPP. Forrester asked some of the best examples of companies that have automated their I2P processes to tell us the secrets of a successful I2P improvement initiative and the pitfalls to avoid. We found that companies should create a cross-functional program that targets fully straight-through processing (STP) with maximum supplier participation. Forrester has also developed a maturity model to show how companies progress from fully manual processing to reach fully automated EIPP. Sourcing teams can use the diagnostic self-test within this report to assess their current stage and identify priorities for action.

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