Benchmarking for Continuous Improvement in AP With Microsoft Dynamics AX & AX365 Jeff Green Regional Sales Director

“What cannot be measured cannot be met!”

Cost per Invoice Come up with simple calculation for attendees to follow along with. Do you use CPI? What is often overlooked in the calculation? What is the highest cost attributing to the CPI?

Invoice Lead Time Average: 23 – 12.2 days/invoice Source: Paystream Advisors, 2016; Ardent, 2016

Invoices Processed per AP FTE ASK SUSIE WEST TO COMMENT.

Touchless Processing (%) Definition: % invoices that require no manual intervention between receipt and posted in financial system ASK SUSIE WEST TO COMMENT.

Automatic Distribution (%) Definition: % invoices that require no manual intervention to distribute to relevant approver

Benchmarking: How to Achieve Best Practices Build a baseline Implement your AP automation tool Use KPIs to measure AP process efficiency Compare performance to relevant benchmarks Identify areas of improvement Monitor KPIs Daniel

Building a Baseline Daniel

Implement your AP Automation Tool

Manually connect ratio Measure KPIs Cloud and big data analytics to enable KPI reporting & benchmarking Touchless ratio Manually connect ratio Processing lead time Daniel

Analyst KPIs 45 days $12.26 3% 18% 23 days 5 days $6.86 $2.67 9% 32% Metric Novices Average processing time (invoice to approval) 45 days Average processing cost/invoice (combination of paper and electronic) $12.26 % of electronic invoices 3% % of discounts captured 18% Mainstream Innovators 23 days 5 days $6.86 $2.67 9% 32% 40% 75% Even the innovators only capture 32% of invoices electronically … separate thread for eInvoicing versus paper/PDF Source: PayStream Advisors + Medius “Your Path to True Straight-Through AP Processing”, May 2015

KPI’s for Continuous Improvement PO Based Invoices http://benchmarks.mediusflow.com/index.html Current as of 9/6/17

KPI’s for Continuous Improvement Non-PO Based Invoices http://benchmarks.mediusflow.com/index.html Current as of 9/6/17

Benchmark your KPIs vs. Industry Leaders Continuously Improve you’re AP KPIs Touchless Rate Manual connection 3 Way Match Exception Analysis % Total lead time Exception Management lead time 69% 25% 26% 7 days 3.5 days Average 75% 8% 22% 0.9 days 0.4 days YOUR KPIs 551 total invoices processed over the last 30 days 90% 7% 3% <1 day 0.25 days Leaders Real client example from Q2, 2017

Implement Best Practices for Success Ongoing reviews of software deployment Sharing of best practices to maximize AP performance Ensure corporate compliance controls are being adhered to Product Roadmap Voting review New feature and enhancements immediately available in a true-cloud solution Genuine partnership with customers Participate in Customer Conference

Deliver results with Microsoft AX Over 100 Microsoft AX and AX365 customers are using Medius for Accounts Payable Automation & Benchmarking This Video has been seen more than 2000 times on Microsoft and Medius Web Sites

250,000 invoices with integration to Dynamics AX “We now have the right tools and infrastructure to keep growing and we’ll be able to handle additional volume with the same staff.” - Amando Rodriquez, AP Manager ERP: Dynamics AX 2012 250,000 invoices per year Paper, PDFs and EDI invoices PO and non-PO invoice workflow 250,000 invoices with integration to Dynamics AX

“We have much better control over supplier invoices during our restructuring process while acquiring 80 stores around the country.“ - Pontus Petersson, CFO Over 250,000 expense and PO-based invoices annually with integration to Dynamics AX

Case Study: http://customers.microsoft.com/en-us/story/marcjacobs In any given week, Marc Jacobs engages 50 new vendors in work that, over the course of 1 year generates more than 54,000 invoices. Marc Jacobs cut invoices processing time from 45 to 11 days. 93% of invoices are now routed without any human intervention. This Video has been seen more than 2000 times on Microsoft and Medius Web Sites “MediusFlow was up and running in less than 4 weeks and we realized an ROI within 7 months.” - Regis Litre, CIO http://customers.microsoft.com/en-us/story/marcjacobs

About Medius 100% Focus on AP automation since 2001 North American HQ in NYC, 200+ staff, 10 global offices, global partner network PO-based Workflow: Experts in automated matching Maximizing touchless, straight through processing of PO-based invoices Non-PO Workflow: Accurate coding and real-world approval routing Sequential & parallel routing, flexible approval hierarchies True-cloud company, true-cloud solution Product-based solution with continual enhancements and new features Point and click configuration, packaged best practice workflows Giving business the control, eliminating IT bottlenecks and resource demands Performance metrics and unique peer benchmarking Actionable business intelligence for ongoing improvement Let’s kick-off with a brief overview of Medius to provide a context for our expertise and pedigree in this space, and then we’ll jump in to a solution demonstration. Medius was formed in Sweden in 2001 with a 100% focus on developing and delivering market leading solutions for AP invoice and workflow automation. <CLICK> Part of that focus was to deliver the world’s best matching engine with capabilities to maximize touchless or straight-through processing of PO-based invoices including 2-way and 3-way matching and automated exception handling. <CLICK> Of course, in parallel we deliver accurate coding support for expense or non-PO invoices allowing for real-world serial and parallel routing and supporting even complex approval hierarchies. The business is empowered and the need for IT resources eliminated by providing point-and-click configurability to business administrators. A combination of being a true-cloud solution with deep integration experience allows Medius to deliver a scalable solution offering for modest invoice volumes in the 10’s of thousands per year to millions of invoices for global companies, so our clients can invest in a solution that will leverage their existing ERP and IT investments and scale with them either through organic growth or M&A activities. Built to scale for SMB to global companies 2000+ clients, 40+ countries, 45+ million invoices per year Future-proof investment Integration capability for Microsoft AX and other Microsoft Dynamics tools, multi-ERP, disparate systems…

Benchmarking Next Steps Additional Resources 1. AP Automation Benchmarks Overview http://www.mediusflow.com/en/MediusFlow-advantages/Benchmarks 2. Benchmarks: How to Compare Against Your Peers http://benchmarks.mediusflow.com 3. Benchmark your way to Invoice Processing Excellence (Blog Post) http://www.mediusflow.com/en/Knowledge/Blog/Benchmark-your-way-to-invoice- processing-excellence 4. Benchmark Yourself: 5 KPIs you need to know (On-demand Webinar) http://www.mediusflow.com/en/Knowledge/Webinars Daniel

Contact Information Jeff Green Regional Sales Director  Jeffrey.Green@medius-group.com  +1 (706) 273-9995