Daily Archives: March 11, 2014

If Even a Canadian TelCo Can Use Payables to Add $3 Million To Their Bottom Line

Imagine what your company could do with invoice automation. As per this recent article over on Shared Services Link on how to turn payables into an opportunity and add $3M to your bottom line, Telus, a 10 Billion telecommunication products and services provider which typically receives 15,000 to 20,000 paper invoices per month, implemented a supplier portal, electronic invoicing, and a dynamic discounting solution that allows them to save 3 Million annually.

When you consider that 10 Billion is big, but not that big these days, that a lot of organizations receive 15,000 to 20,000 paper invoices a month, or more, and that a supplier portal is pretty primitive from an automated invoicing viewpoint, you quickly see that there is quite a lot of opportunity for your organization to save quite a lot of money from invoice processing. In some organizations, the overhead alone from manual processing exceeds a million dollars, and this barely covers a detailed review of 10% to 20% of the invoices. Proper automation insures m-way matching on 100% of invoices with exception-based processing on the 10% to 15% that contain issues or errors.

You see, when you implement the right invoice automation solution:

  • 98%+ of all invoices flow through the system,
  • 99%+ of all errors are caught,
  • 90%+ of all invoices are automatically processed without human intervention, and
  • 80%+ process savings are realized and maintained.

And then, instead of spending $30 to $40 to process an single invoice, you’ll be spending $3 to $4. So, if your organization is processing 10,000 invoices a month, you’ll see your overhead costs drop about $300,000 and you’ll save upwards of 3 Million a year before dynamic discounting or other supply chain financing solutions are put into the mix!

For more information on how your organization can save 3 Million, download Sourcing Innovation’s recent white-paper on An End-to-End Invoice Automation Framework – Ten Keys to Success (registration required), sponsored by Nipendo.