Accounts payable automation is in high demand among corporate treasurers, and while companies understand the benefits of automation, it is more difficult to put a price tag on those benefits.
A new study by Forrester Consulting found impressive results for businesses that implement procure-to-pay and eInvoicing solutions. Researchers revealed Monday (Oct. 5) that for companies that adopted Basware’s procure-to-pay tools, they experienced a 277 percent return on investment.
The study, titled “The Total Economic Impact,” was conducted by Forrester on behalf of Basware, and data was obtained through the analysis of four Basware customer case studies.
Interviews with Basware users said it took an average of 15 months to pay back the investment of implementing the P2P services. Companies also experienced $3.6 million in net present value over a three-year span of using these procurement solutions.
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Researchers found AP productivity gains worth about $626,000, with an AP department able to handle more eInvoices and secure more early payment discounts with an automated solution.
According to Basware, the research shows the connection between enforcing strong connectivity between procurement and AP teams in order to help companies optimize spend management and save more. It also suggests that companies should strategically develop their AP and procurement functions to ensure easy adoption of automated function, which will yield improved compliance, the company said.
"It’s clear that the benefits of not only implementing Basware solutions but also bringing together accounts payable and procurement can be far-reaching and have a major impact on the profitability of an organization,” said Esa Tihilä, Basware CEO, in a statement. “Organizations need to consider a mixture of better processes and making sure the right technology is in place. That way, those benefits that are clearly very valuable can reach multiple departments throughout the business."