| v> | | | | challenges. The problem is that there are still invoices |
| This special report examines how to avoid being | | | | coming in for food and beverages as well as for |
| pigeonholed when trying to automate the accounts | | | | direct materials. These invoices don't have POs |
| payable process. | | | | associated with them, which means that the |
| The scenario is all too real. A company allocates | | | | company is pigeonholed because it is only automating |
| budget dollars to automate the Procure to Pay (P2P) | | | | the indirect spend. |
| process, bringing in a solution that seems to handle | | | | A company can also be pigeonholed by selecting a |
| everything from creating POs and receiving invoices | | | | solution that is not ERP and procurement system |
| to automating the accounts payable process and | | | | neutral. Systems that are tightly coupled to a specific |
| submitting the information to the ERP system for | | | | ERP reduce flexibility. Companies change their ERP |
| payment. But then when it comes down to | | | | systems. They may be acquiring or merging with |
| implementation, it turns out that the solution only | | | | other businesses that have different ERP systems. |
| automates one piece of the spend. It completes the | | | | An AP automation solution needs to be flexible |
| processing for the indirect spend but doesn't process | | | | enough to handle information from various ERP |
| POs for direct materials or other supplies. In addition, | | | | systems and not create a roadblock to progress. |
| it can't handle non-PO based invoices. Instead of truly | | | | How LXR Solved the Problem |
| automating P2P, the solution has pigeonholed the | | | | LXR Luxury Resorts & Hotels is a dynamic collection |
| company by only handling a piece of the process. | | | | of hotels and resorts dedicated to an entirely new |
| This special report shows you how to avoid being | | | | definition of luxury. From bustling urban centers such |
| pigeonholed by utilizing an AP automation solution that | | | | as New York and Los Angeles to timeless resort |
| breaks through the limits so you can process all | | | | locales like Boca Raton and Montego Bay, they offer |
| invoices. | | | | exceptional experiences and extraordinary memories. |
| Why Automate in the First Place | | | | Each location received its own invoices that needed |
| Productivity and efficiency are critical factors | | | | to be coded and signed. At the end of each week, |
| throughout the AP process. Early-pay discounts are | | | | the invoices were batched together and shipped to |
| out of reach for most companies due to the | | | | another company for scanning. A business process |
| inefficiencies of paper-based AP processes. The | | | | outsourcing company then retrieved the scanned |
| Aberdeen Group found that the average time to | | | | images, validated the signatures and keyed the |
| process a single paper invoice is 20 days, and other | | | | invoice data into Epicor, LXR's ERP system. Only then |
| studies have found even longer cycles to be | | | | were the invoice images available in a search and |
| common. At 20 days, the window for early-pay | | | | retrieval application for end users. |
| discounts is closed. Companies that introduce | | | | "The turnaround time to scan the invoices was too |
| effective automation see dramatic reductions in AP | | | | long. Because of the delays, it was taking us two to |
| cycle time, and are able to capture significantly more | | | | three weeks to have the information entered into |
| early-pay discounts. | | | | Epicor. The time lag, along with a lack of visibility over |
| For companies that process thousands of invoices | | | | the status of individual invoices, made our month-end |
| per month, paper-based AP processing strains internal | | | | accrual reporting difficult to complete," said Ed Weiss, |
| resources and traps AP departments into low | | | | Vice President of Financial Services at LXR. The |
| productivity processes. In today's cost constrained | | | | company started to evaluate other scanning options |
| environment, low productivity processes are under | | | | and wanted to implement a new search and retrieval |
| increasing pressure to improve, and organizations are | | | | solution. They weren't planning on utilizing a complete |
| turning to Accounts Payable automation solutions to | | | | accounts payable automation solution until they |
| drive productivity. | | | | learned more about ASPEN 360 Accounts Payable |
| Vendor networks and electronic invoices are often | | | | Edition from Archive Systems. |
| seen as the silver bullet to fix the process. However, | | | | ASPEN 360 Accounts Payable Edition is an on-demand |
| it is not enough to focus solely on pressing vendors | | | | solution that automates the AP processes by |
| to deliver electronic invoices. Even in companies that | | | | combining industry best practices with ZeroTouch™ |
| have established an electronic invoicing initiative, one | | | | AP imaging and workflow. "By turning to ASPEN 360, |
| study found that more than half of the companies | | | | we realized that we would gain more control over |
| surveyed still received in excess of 85% of their | | | | our entire accounts payable process. In addition, we |
| invoices on paper. The costs and challenges for | | | | would be able to transition invoice imaging from the |
| vendors to go paperless have made vendors | | | | back end to the front end, which eliminated weeks |
| resistant and slow to convert. Exclusively relying on | | | | from the review and approval of invoices," Weiss |
| an e-invoicing initiative to improve AP processing is | | | | added. |
| one more pigeonhole to avoid. A solution that | | | | LXR's vendors now send invoices directly to Archive |
| virtualizes the entire back office can deliver the | | | | Systems' Invoice Virtualization Center for document |
| benefits of electronic invoices even when the | | | | conversion and data capture. The invoices are then |
| majority of vendors are still sending paper. | | | | routed electronically to the appropriate person for |
| Even after adopting an electronic invoicing initiative, | | | | approval based on existing business rules. ASPEN |
| an AP automation solution can pigeonhole a company | | | | 360's SmartRouting streamlines the movement of the |
| if it is not able to handle receipt of electronic data in | | | | invoices by intelligently knowing where they need to |
| a wide variety of formats. There are multiple vendor | | | | go next. Once an invoice meets final approval, the |
| networks with various electronic invoice formats. | | | | information is transmitted directly into Epicor for |
| Each network introduces a cost and operational | | | | payment. |
| burden on vendors. The result is that your vendors | | | | LXR was previously outsourcing 25,000 invoices per |
| may resist joining the network you select. A | | | | month, so they had limited AP staffing. When they |
| comprehensive AP automation solution must handle a | | | | brought the process back in-house using ASPEN 360, |
| broad range of formats including e-invoicing, EDI 810, | | | | they were still able to process all the invoices with |
| and P-card information. Otherwise, you will be | | | | the same staffing levels. "The transition to ASPEN |
| pigeonholed into only accepting electronic invoices the | | | | 360 largely meant a redistribution of work among our |
| AP solution can handle. By virtualizing the back office, | | | | users. The administration time is minimal. Three people |
| a variety of electronic invoice formats can be | | | | spend less than four hours per day combined to |
| accepted and presented in a consistent manner to | | | | route unassigned invoices to the point of contact at |
| approvers. | | | | each location, add or modify users, and update or |
| The Pigeonhole Problem | | | | maintain tables," Weiss said. |
| Numerous companies believe that when they | | | | In addition to gaining control over the AP process, |
| implement a P2P solution, they will also be able to | | | | LXR was able to reduce the cost per invoice by over |
| automate the accounts payable process. | | | | 55%. "The change to ASPEN 360 from our prior |
| Unfortunately, they've ended up being pigeonholed | | | | invoice processing flow was a big improvement for |
| with a solution that only delivers part of the process. | | | | our property users. They no longer have to spend |
| The solution automates the payment of invoices that | | | | time looking for delayed or missing invoices, and |
| include POs, but it fails to process non-PO based | | | | ASPEN 360 provides them the tools to efficiently |
| invoices. By focusing on P2P strategies, companies | | | | code, approve and research invoices. ASPEN 360's |
| limit themselves to only a portion of the process. An | | | | automated workflow tools have significantly |
| example of this is a hotel company that issues POs | | | | improved our controls over invoices and reduced the |
| for its indirect spend. It implements a P2P solution | | | | amount of time required to get invoices ready for |
| that automates the processing of PO-based invoices | | | | payment," added Weiss. |
| and the assumption is that it will address all of the AP | | | | |