Documens Boss

Transactional processing purchase-to-pay (P2P) is one of the fastest growing areas in the ECM/BPM data capture, process and output management technology sector.  

 
Over the past 3-5 years we have noticed tremendous growth and consolidation among e-invoicing/e-payment vendors and suppliers. Amongst transactional processing companies focused on P2P we have seen considerable, but fragmented, growth with some big IT software & Service providers as well as much smaller niche players competing to gain market share of a growing sector. An increasing number of companies with DMS, workflow and data capture capabilities have and continue to try and grab a share of this market. There is also an increasing array of e-payment network hubs emerging, utilising SaaS technology solutions for e-invoicing/e-payment &
e-collections solutions in both the B2B and B2C marketplace.
 

 
Document Boss speaks to two leading software and services providers, active in the area, for their insights on this evolving market.
 
Contributions to this month’s article are from:
• Barry Richards, UK MD, Top Image Systems  
            www.topimagesystems.com
• Chuck Kingston, Solutions Manager, Accounts Payable,Perceptive Software
            www.perceptivesoftware.com   
                                                                                              
 
 

1) What are the key drivers for P2P related applications and which market sectors are you finding are the fastest adopters, and why? 

 
Barry Richards, Top Image Systems:
The application should process automation tools that provide the end user with better:
• Cashflow management – Accrual management
• Process control and visibility of information
• Low operational cost per invoice
• Exception management
• Vendor rationalization
• Reduction of invoice duplication
• Resource management
• Audit MI
The fast adopters tend to be in sectors that can instigate purchasing catalogues with bulk suppliers in order to provide control from the start and a fully electronic transaction. Manufacturing and Retail are good examples. However, in most cases, the Finance Department also has to deal with many, smaller suppliers who are primarily paper driven and generate paper invoices. Therefore, a means of converting paper to an electronic format, incorporating scanning and OCR into the workflow process, is also a required tool for achieving the key drivers listed above.
 
 

Chuck Kingston, Perceptive Software: There are a number of key drivers for P2P related applications. For one, there is the need to streamline the processes between suppliers and customers, reducing the time to process and the time to generate/receive payment.   As a result, this puts organizations in a more favourable position to qualify for supplier discounts.   Another key driver is to improve staff productivity and efficiency within Accounts Payable Departments.   P2P related applications have also been proven to reduce risk of AP fraud, as well as reducing the cost per invoice.
Based on what we’ve experienced, the fastest adopters of P2P related applications are organizations that carry an inventory of supplies, parts, etc. either for consumption, use in the manufacturing process or for resale. Healthcare, manufacturing and retail organizations are good examples.
 
 
 
 
2) What do you consider to be the main resistance to the electronic P2P transactional processing solutions?
 
Barry Richards, Top Image Systems: Practical reasons of enforcing small or ad hoc suppliers to adopt online entry or to provide invoice data in a specified format. As cited above, organisations or outsourcers need to provide a solution that accommodates both paper and electronic transactions to achieve key objectives and low cost per PO raised and invoice paid.
 
Chuck Kingston, Perceptive Software: The main resistance has to do with a general lack of knowledge about P2P.  Many organizations still don't think their suppliers will be receptive to receiving electronic purchase orders (POs) or want to send electronic invoices.   Many suppliers and customers still think electronic invoicing or eInvoicing is the same thing as EDI, when in fact, while the end result may be the same, the technologies are truly quite different.  EDI is a very complex transaction standard format and has always been perceived as a solution for large organizations only - mostly driven by the overall complexity and the high dollar costs for implementation and ongoing support of EDI solutions.   If organizations would simply take the time to learn more about eInvoicing, they would most likely learn that the process is not that complicated, not that expensive and that they have several suppliers who are open to the process. They would also learn that they can achieve P2P automation at a cost per transaction that is substantially lower than what they currently spend.
 
 
 
3) What do you consider are the main benefits for users to choose an electronic (SaaS) platform, versus adopting on-premises software to electronically handle their invoicing and Accounts Payable/Accounts Receivable and payment process?
 
Barry Richards, Top Image Systems:
• Controlled cost with measurable savings
• Fast adoption, leading to quicker ROI
• Governed by an SLA that is designed to guarantee performance and efficiency objectives
• Minimum impact on internal resource and infrastructure
• Location independence
 
 

Chuck Kingston, Perceptive Software: The primary benefit is lower overall monthly operational costs.  SaaS allows for the ability to take advantage of secure, compliant service providers that are often times better than their own. The SaaS delivery method also provides organizations the flexibility to consider changing service providers with less impact on the corporate IT infrastructure. In addition, there is the ability for organizations to transfer support and maintenance of the hardware and software onto the software provider rather than leaning on internal staff to take on the extra work that accompanies it, such as training.
 
 
 

4)  How do you see this market developing in the future?
 
Barry Richards, Top Image Systems: TIS has seen the popularity rise in hosted P2P, business process outsourcing along with the emergence of some standardisations, which make electronic invoice processing a possibility, now more than ever before. It is with these trends in mind that TIS has already adapted their data capture offering to provide the tools for partners or organisations deploying these services and solutions.
 
 

Chuck Kingston, Perceptive Software: I believe that P2P Automation (eProcurement and eInvoicing) is going to grow at a rapid rate. As knowledge of these offerings spreads, adoption rates will increase dramatically. Industry prognosticators have predicted that eInvoicing will grow at a rate that clearly outpaces any other invoicing automation solution technology.  I also see suppliers taking advantage of eInvoicing Vendor Portals for submittal of Non-PO Invoices.