Editor’s Note: Do you want to learn more about Bob’s take on the importance of data within Accounts Payable, and how best to utilize that data to take AP to the next level? Then join Bob tomorrow Tuesday, September 18 at 2pm ET for a complimentary webinar presentation, Making an Impact: How Data in AP Can Drive Success for the Entire Business, sponsored by Esker.
In 2018, it is important for all business functions to take a metrics-based approach in order to understand their impact on the enterprise and how to maximize it. Accounts Payable (“AP”) groups should begin tracking their performance in order to develop (and then improve upon) the key metrics that measure efficiency and effectiveness. The procure-to-pay (P2P) process in particular has been growing in importance within many enterprises over the last few years. As with any business process, optimization is key to creating value throughout the process. Within AP, some of the the main drivers of optimization include:
- Efficiency – from a cost, productivity, resource allocation and time perspective
- Connectivity– to suppliers but also other internal organizations (e.g., finance, treasury)
- Cash management– optimal use of enterprise working capital
- Compliance – to policies, negotiated contracts, terms, etc.
These drivers above have associated metrics that can enable organizations to monitor activities and measure/improve performance of the AP process. There is one additional driver that is also important to optimizing this process – visibility. Visibility into real-time and accurate data throughout the P2P process is invaluable to all stakeholders involved. Visibility is created through the establishment of metrics, reporting and analytical tools, dashboards and access to data.
Some organizations may place more importance on one of the above drivers and that will determine the metrics they utilize to monitor, track and continuously improve performance. It is important to note that when establishing metrics each one should have a clear definition or purpose, an achievable target and stakeholder(s) ownership and involvement whether in AP or finance.
If you are interested in learning more about the impact data within AP can have, join me on a complimentary live webinar (click here to register) in which I will take a deep dive into the specific metrics that help place AP in a better position to make an impact within the organization. This webinar is aimed at helping organizations profit from greater knowledge of their AP process.
Webinar attendees can also hear how to:
- Develop a business case for AP automation
- Pursue a performance improvement campaign
- Leverage the data that enables an intelligent AP operation
