ROI Model
Numerous companies worldwide have invested in detailed evaluations to determine whether the return on investment for implementing an Accounts Payable workflow solution is less than one year. The results are consistent and compelling - the payback is fast and it’s significant.
While every organization’s cost structure and procedures differ, most find the ROI centers on the following items:
- Data Entry - including rework for errors
- Document Routing - including the determination of route, and physical handling / transportation
- Cost associated with missing documents
- Costs associated with duplicate payments
- Costs associated with vendor interruptions (asking if invoices are received / when payment is coming)
- Ability to leverage early payment discounts
- Document filing costs
- Storage costs (from filing cabinets to office space)
- Photocopying / courier costs
- Audit costs (document searching, photocopying, re-filing)
Each of the items above can be measured in terms of cost both before and after the implementation of an AP workflow solution. In many cases, after implementation, costs are either eliminated or reduced to less than 10% of the original expense.
