Thinking about finally taking the plunge and investing in AP automation? Making the business case can be simple, straight-forward and compelling. Achieving those results and realizing a return on investment according to plan can be easy too.
Here are a few things to consider when calculating, measuring and reporting on ROI when it comes to AP automation.
Often, the business case for AP automation is driven by efficiency gains and shorter cycle times that can translate directly into cost savings great enough to justify the investment in anywhere from six months to a year. That’s great—but it’s also selling the true potential of AP automation short.
Shorter cycle times can translate into greater control over cash flow, and under the right circumstances, can allow companies to take advantage of vendor early payment discounts. Studies show that as few as 29 percent of companies capitalize on early payment discounts, which means a LOT of money left on the table.
Less time spent behind the keyboard for your AP staff does more than relieve wear and tear on their carpal tunnels and your PC hardware. It also means more immediate access to business data that can translate into golden opportunities for better decision making and more strategic insights. Whether it results in better inventory control, cash management or forecasting, timely access to accurate data has real business value that shouldn’t be overlooked when pitching AP automation, or measuring its impact downstream.
The ability to scale back office operations, whether it’s AP and vendor invoice processing or accounts receivable and customer sales order processing, can help ensure that a company’s growth plans aren’t hampered by operational inefficiency.
At Artsyl Technologies, customers like Leatherman, a multi-tool manufacturer, have embrace AP automation as part of a strategic growth initiative. Automating data entry, document filing and approval routing wasn’t just about cutting costs—it means that as the company onboarded new vendors, launched new products or entered new markets, they didn’t have to worry about being slowed down by onboarding and training new employees. Automating allowed them to scale operations instantly, taking out any friction or operational risk that might have slowed down their ability to expand.
For more information about AP Automation and Intelligent Process Automation, contact your Artsyl Technologies Account Representative.