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Order to Pay Automation Cited as Leading Initiative for Driving Second Wave of Procurement Savings
AberdeenGroup Research Shows That Savings From Order to Pay Automation Can Exceed Savings from Strategic Sourcing and E-Procurement
Pleasanton, Calif., January 18, 2005 - Xign Corporation, the leading provider of Enterprise Order to Pay software and services, today announced that research from The AberdeenGroup documents the strategic value of Order to Pay automation. The report, sponsored by Xign, shows that automating the Order to Pay activities of invoice reconciliation and payment reduces invoice-processing costs by more than 60% and captures as much as 17.5 % savings on a significant portion of corporate spend.
In its report, titled &8220;Harnessing Payables to
Capture A Second Wave of Procurement Savings,&8221; Aberdeen
contends that approaching Procure to Pay automation in
a closed loop fashion makes better use of supplier payables
information for cost reduction and cash management activities,
significantly increases supplier participation in automated
invoice and payment programs, and improves alignment
of purchasing with treasury and accounts payable. In
addition, the report states that automating Order to
Pay activities helps to establish and document business
controls mandated by the Sarbanes-Oxley Act.
According to AberdeenGroup estimates, the potential savings
impact of additional improvements across the Order to
Pay cycle could fall into the $153 billion to $260 billion
range. This exceeds the previously booked savings from
strategic sourcing and e-procurements efforts completed
without a closed-loop, Procure to Pay process.
&8220;Innovation within the invoice reconciliation and payment processing is long overdue,&8221; said Jeff Pikulik, director of buy-side research at AberdeenGroup and author of the report. &8220;Organizations that recognize the strategic value of Order to Pay automation will significantly extend the cost savings they have achieved in related areas such as spend management and e-procurement.&8221;
Xign Order to Pay streamlines payables processing and monetizes early payment discounts across corporate spend. With Xign, organizations can reduce operational costs and cycle times, optimize working capital, strengthen supplier relationships, and realize a payback in less than one year. Xign studies of more than 50 Fortune 1000 companies show that Order to Pay automation can deliver millions of dollars in annual savings for every $1 billion in spend.
&8220;Aberdeen&8217;s research supports our contention that organizations must view payables processes as strategic, playing a key role in corporate cost reduction initiatives,&8221; said George Fan, Xign vice president of marketing. &8220;By using our on demand, Order to Pay service, Xign customers can significantly reduce savings leakage and realize new cost savings from early payment discounts.&8221;
The free Aberdeen report can be requested from the Xign
web site at http://www.xign.com/aberdeen_research_main.html.
In addition, a free Xign-Aberdeen web seminar on this
topic is scheduled for February 16. For more information,
visit http://www.xign.com/webinar/aberdeen.html.
About AberdeenGroup
Founded in 1988, AberdeenGroup Inc is the trusted advisor
to the global business executive for value chain strategies
and business advice.
Source : Xign Corporation
