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

2. “What cannot be measured cannot be met!”

3. 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?

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

5. Invoices Processed per AP FTE
ASK SUSIE WEST TO COMMENT.

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

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

8. 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

9. Building a Baseline
Daniel

10. Implement your AP Automation Tool

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

12. 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

13. KPI’s for Continuous Improvement PO Based Invoices
Current as of 9/6/17

14. KPI’s for Continuous Improvement Non-PO Based Invoices
Current as of 9/6/17

15. 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

16. 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

17. 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

18. 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

19. “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

20. 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

21. 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…

22. Benchmarking Next Steps
Additional Resources
1. AP Automation Benchmarks Overview 2. Benchmarks: How to Compare Against Your Peers 3. Benchmark your way to Invoice Processing Excellence (Blog Post) processing-excellence 4. Benchmark Yourself: 5 KPIs you need to know (On-demand Webinar)
Daniel

23. Contact Information
Jeff Green
Regional Sales Director 
 +1 (706)