Automatic Data Processing, Inc. · NASDAQ:ADP
Automatic Data Processing — Aberdeen Group and ADP ePayables Webinar (April 2011)
31 slides from Automatic Data Processing's conference presentation, Apr 27, 2011
Slide 1: Making Progress with ePayables
Making M ki P Progress with ePayables Best Practices for Performance Improvement and Supplier Participation April 27th, 2011 Scott Pezza S i R Senior Research hAAssociate i t Aberdeen Group Sush Koka S i Di Senior Director, t P Product d tM Marketing k ti ADP Procure-to-Pay Solutions © AberdeenGroup
Slide 2: Making Progress with ePayables
M ki P Making Progress with ith ePayables P bl Review of the Latest A/P Research Performance Benchmarks: Beyond the Best-in-Class Best in Class Recommendations for Performance Improvement Understanding the Supplier’s Perspective Strategies for Supplier Enablement © AberdeenGroup 2011 2
Slide 3: Latest Research
L t t Research Latest R h Aberdeen’s Aberdeen s PACE Methodology Pressures Actions Capabilities Enablers Defining g Best-in-Class Performance A Focus on Defining Capabilities Technology Adoption by the Best-in-Class © AberdeenGroup 2011 3
Slide 4: Pressures Driving a Focus on A/P Improvement
Pressures Pressures Driving a Focus on A/P Improvement Corporate directives to lower costs 60% 43% Lack of visibility into invoices and A/P 55% documents 57% Difficulty finding or managing paper-based 29% documents 23% Inability to effectively manage cash according to 16% current business needs 29%
Slide 5: The Context: Maturity Class Framework
C t t The Context: Th Maturity M t it Class Cl Framework F k Defining Best-in-Class Performance Definition of Maturity Class Mean Class Performance Best-in-Class: 3.8 days to process a single invoice Top 20% of aggregate performance scorers $3.09 average cost to process a single invoice 4.1% y
Slide 6: Actions: Top Strategies to Combat Business Pressures
A ti Actions Top Strategies to Combat Business Pressures 64% Invest in automation of invoice receipt and 34% workflow processes 36% 39% Conduct assessment of current A/P capabilities 52% 49% 29% Integrate Payables with back-end systems 41% 36% 18% Devote resources to supplier enablement for 16% eInv
Slide 7: Capabilities: Competitive Framework – Part One
C Capabilities biliti Competitive Framework – Part One Best-in-Class Industry Average Laggards Process Centralized IR&W processes in a single location 67% 46% 28% Standardized IR&W processes across locations/units 59% 38% 28% Organization Executive sponsor or champion for A/P improvement initiatives
Slide 8: Capabilities: Competitive Framework – Part Two
C Capabilities biliti Competitive Framework – Part Two Best-in-Class Industry Average Laggards gy Technology Automated matching g of invoices to p purchase orders 57% 37% 29% Ability to compare invoices to contracts for: 57% - Payment terms 34% - Payment terms 17% - Payment terms 56% - Price
Slide 9: Enabling Technologies: Technology Choices of the Best-in-Class
E bli T Enabling Technologies h l i Technology Choices of the Best-in-Class Document imaging 52% 43% Cash Management 46% 25% Electronic approval workflow 44% 34% 43% Supplier portals 11% Comprehensive A/P automation (single solution) 35% 17% Spend analytics / Business Intelligence 33% 16% Comprehens
Slide 10: Additional Performance Benchmarks
Additi Additional lPPerformance f B Benchmarks h k Beyond the Best-in-Class Definition M ti Metric B t i Cl Best-in-Class I d t Average Industry A L Laggard d Electronic Invoices (% of total) 35.8% 23.8% 10.9% Early payment discount capture rate 31% 24% 15% Error Rate (incoming invoices with inaccur
Slide 11: Prioritization of Competing Choices
P i iti ti off C Prioritization Competing ti ChChoices i Benefits and Ease of Improvement Attribute Potential Benefit Ease of Improvement ((5 – Most Beneficial)) ((5 – Easiest to Improve) p ) Collaboration between A/P and Procurement 4.35 3.02 Integration of A/P with ERP/financial systems 4.35 3.08
Slide 12: Recommendations: Performance
R Recommendations: d ti P Performance f Standardize your invoice receipt and approval processes © AberdeenGroup 2011 12
Slide 13: Recommendations: Performance
R Recommendations: d ti P Performance f Standardize your invoice receipt and approval processes Centralize important IR&W processes © AberdeenGroup 2011 13
Slide 14: Recommendations: Performance
R Recommendations: d ti P Performance f Standardize your invoice receipt and approval processes Centralize important IR&W processes Enable the automated matching of invoices to purchase orders © AberdeenGroup 2011 14
Slide 15: Recommendations: Performance
R Recommendations: d ti P Performance f Standardize your invoice receipt and approval processes Centralize important IR&W processes Enable the automated matching of invoices to purchase orders Integrate A/P with contract management © AberdeenGroup 2011 15
Slide 16: Recommendations: Performance
R Recommendations: d ti P Performance f Standardize your invoice receipt and approval processes Centralize important IR&W processes Enable the automated matching of invoices to purchase orders Integrate A/P with contract management Integrate A/P with your back-end ERP or Financial systems
Slide 17: Understanding the Supplier's Perspective
U d t di th Understanding the S Supplier’s li ’ P Perspective ti Top Pressures Demand volatility’s impact on available cash Risk of trading gppartner default Strategic Responses Alter payment terms with trading partners Seek out additional sources of financing Respondents espo de s from
Slide 18: Understanding the Supplier's Perspective: Technology Profiles
U d t di th Understanding the S Supplier’s li ’ P Perspective ti Technology Profiles Buy-Side 60% Sell-Side Percentage of Respondents, n = 138 52% 50% 42% 41% 40% 37% 29% 30% 20% 10% 0% Electronic PO Electronic Electronic Electronic Supplier Network creation and invoice receipt invoice creation paym
Slide 19: Strategies for Supplier Enablement
St t i ffor S Strategies Supplier li Enablement E bl t Common Approaches for Your Peers Mandated supplier adoption of electronic invoices © AberdeenGroup 2011 19
Slide 20: Strategies for Supplier Enablement
St t i ffor S Strategies Supplier li Enablement E bl t Common Approaches for Your Peers Mandated supplier adoption of electronic invoices Inclusion of suppliers in project design and scoping © AberdeenGroup 2011 20
Slide 21: Strategies for Supplier Enablement
St t i ffor S Strategies Supplier li Enablement E bl t Common Approaches for Your Peers Mandated supplier adoption of electronic invoices Inclusion of suppliers in project design and scoping Exchange of beneficial terms for cooperation © AberdeenGroup 2011 21
Slide 22: Strategies for Supplier Enablement
St t i ffor S Strategies Supplier li Enablement E bl t Common Approaches for Your Peers Mandated supplier adoption of electronic invoices Inclusion of suppliers in project design and scoping Exchange of beneficial terms for cooperation Outsourcing of enablement efforts © AberdeenGroup 2011 2
Slide 23: Strategies for Supplier Enablement
St t i ffor S Strategies Supplier li Enablement E bl t Common Approaches for Your Peers Mandated supplier adoption of electronic invoices Inclusion of suppliers in project design and scoping Exchange of beneficial terms for cooperation Outsourcing of enablement efforts Shouldering of the b
Slide 24: Wrap-Up
W Wrap-Up U ePayables is focused on improving the efficiency of of, and visibility into into, the accounts payable function Electronic invoices can be processed more quickly and for far less cost – but supplier cooperation can dictate success A wide variety of technologies is available, depend
Slide 25: About ADP
About ADP Automatic Data Processing, Inc. (ADP) • Global leader in business outsourcing solutions • Over 570,000 clients worldwide • $1.3 Trillion in client funds moved • World Class, secure payment environment • Leadingg the industry y in compliance p accuracy y • 1 of 4 AAA rated U.S. Industrial
Slide 26: Overview of P2P Solution
Overview of P2P Solution End-to-end solution covering automation from POs and invoices to receipts and payments 26 26
Slide 27: Supplier Enablement
Supplier Enablement • Diverse supplier network able to support all your suppliers • Thousands of suppliers on the network include large multi-national organizations to regional “mom mom and pop pop” establishments • Hundreds of new suppliers added every month; 50,000+ active users on the networj • A
Slide 28: ADP P2P Case Study
ADP P2P Case Study Client Background • Client company and its subsidiaries explore, acquire, develop, produce and market natural gas Overview and crude oil • Multi Multi-billion billion dollar company, with operations in in North America and selected international locations, with field offices throu
Slide 29: Client Results
Client Results No More Paper Successful Migration from Paper to Electronic • 99% of client invoices are processed in ADP P2P • 60 p percent of invoices are electronically y submitted by y 480+ vendors • 20% of suppliers, accounting for 60% of invoices volume have been on boarded • Lost invoices have
Slide 30: Other Webinars in This Series
Other Webinars in This Series Consumer Packaged Goods – An Introduction to ePayables • Wednesday, February 23rd • Access recording at https://www.livemeeting.com/cc/adpcorp/view?id=Z723NP Advanced Topics in A/P Automation – Improving Savings, Accuracy, and Compliance • Wednesday, Wednesday June
Slide 31: Questions?
Questions? Scott Pezza Senior Associate, Aberdeen Group Phone: 617.854.5380 Scott.Pezza@Aberdeen.com Sush Koka Senior Director, Product Marketing Phone: 832.308.3581 832 308 3581 Sushmitha_Koka@adp.com © AberdeenGroup 2011
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