Return on investment (ROI) is essential to any successful business investment. Ownership and Management wants to know how much money will be saved, and how quickly, to cover the upfront investment. With procure-to-pay or P2P systems, the rate of ROI depends on your current business state and the future state of business that P2P delivers.
To understand what your ROI is for the deployment of a P2P solution, you must analyze how big or small, the compliance gap is between your current business performance and your desired future business performance. BirchStreet helps you determine the gap by helping you analyze your business processes. They will then help you formulate your desired future business performance and business process improvements (BPI) in order to optimize your P2P ROI.
Typical gaps in compliance tend to fall in these categories:
- Purchasing compliance to contracted suppliers and products
- Purchase order approval process
- Inventory master list maintenance
- GL coding accuracy on purchase orders and invoices
- Accurate checkbook balances
- Recipe production, plating and recipe and products
- Menu and recipe consistency from property to property
- Capital budget accuracy and compliance to budget
- Tax and freight capture accuracy and consistency
- Product and service consistency
- Business Intelligence (BI) desired and available
- Accurate consistent receiving done 100%
- Purchase order/receiving and invoice matching
- Purchased price and received price
- Ordered produces and received products
Some companies have better compliance than others, and some companies are more process oriented than others. All of the major P2P Analysts, including Gartner, Aberdeen and PayStream, estimate that ROI for P2P ranges between 3 months and 8 months for most companies. The average cost to process a single invoice today without automation is estimated at $75. What is your average cost (cost of AP process inclusive / number of invoices for the same time period? What is driving the cost? Compliance gaps make up a big part of the expense.
Let us help you find your ROI. It will be worth it, literally.