Paymerang, a leading accounts payable (AP) automation platform, partnered with Ardent Partners on their 2024 State of ePayables report which found that Best-in-Class AP teams achieve per-invoice processing costs that are 78% lower than their peers thanks to automation technology. Overall, the report found that companies that invest in AP automation see an average ROI of 200% within the first year.
The report found that companies are seeing more financial pressure than in recent years. It noted that 68% of this year’s survey respondents see 2024 as being more difficult than 2023 due to financial uncertainty. Critically, it found that AP is “becoming a major cog in the cash management machine and a key player in managing trading partner relationships”.
The report found that Best in Class AP teams, defined as the 20% of enterprises with the lowest average invoice processing costs and shortest average invoice process cycle times, had a significant advantage thanks to automation technology.
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In addition to the 68% cost reduction enjoyed by best in class teams, they also had invoice processing times that are 82% faster than all other groups.
Driving the 200% average ROI by companies who adopted AP automation were a number of efficiencies such as:
Automated AP departments maintain an exception rate of less than 5%, marking a reduction of around 75% compared to manual processing. Manual AP departments have an exception rate around 20%.
Automated AP departments achieve payment accuracy rates of 99% or higher, representing an improvement of around 4-9% compared to manual processing. Manual AP departments range between 90-95%.
Automated AP departments have a cost per invoice of less than $3, reflecting a reduction of around 70-80% compared to manual processing. Manual AP departments average $10-15.
Automated AP departments capture 80-90% of available early payment discounts, representing an increase of around 20-30% compared to manual processing. Manual AP departments capture 50-60%. “Companies using automation capture early payment discounts three times more often, resulting in significant cost savings.”
Automated AP departments achieve supplier satisfaction scores of 90% or higher, indicating an improvement of around 10-20% compared to manual processing. Manual AP departments score around 70-80%.
Paymerang provides a streamlined Invoice and Payment Automation platform that brings Accounts Payable departments into the modern age. Our solution leads the market with a modern, award-winning platform, white-glove customer service, and vendor experience. The result is time savings, greater efficiency, increased visibility, enhanced security, and cost reduction.
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