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[wpc_custom_heading heading=”Service Benefits Are Many” colored_line=”yes” size=”medium” margin_top=”-50`” margin_bottom=”-50″]

A reduction in manual effort with resulting cost reduction.

  • Eliminates all manual handling of invoices from receipt and sorting in the mailroom or scanning, to invoice image indexing and validation and keyed data input. APQC estimates that moving to electronic processing results in a 48% reduction in invoice processing cost.
  • Eliminates manual storage of paper invoices, which can now be delivered and stored in an electronic format (line-data and image copy) without performing expensive scanning or manual filing.
  • Enables electronic 3-way matching of purchase order based invoices automatically at a line-item level in Accounts Payable, flagging only discrepancies for review and supporting line item level analytics.
  • Enables more effective and timely approval workflow for non-purchase order invoices within business units, through rules based electronic routing and administration.
  • Eliminates supplier enablement effort and support that was previously required in connecting Hospitals to their suppliers.
  • Eliminates supplier print and mail cost and effort.

An increase in the quality and timeliness of accounting and business information.

  • Enhances business controls in back-office processes that are increasingly coming under scrutiny.
  • Improves data integrity as manual data entry and scanning inaccuracies are eliminated. Information is now captured electronically at the line-item level, which is not practical when paper invoices are manually entered.
  • Improves accuracy of invoice approval as all invoices can be matched line-by-line electronically against purchase orders. Non-purchase order invoices can now be routed electronically for approval, with workflow also identifying duplicate invoices.
  • Improves completeness of Accounts Payable as less paper is resident with individuals and electronic invoices are processed immediately. Month-end close duration in Accounts Payable is commensurately reduced without the need to account for and accrue paper invoices.
  • Improves suppliers™ Days Sales Outstanding as issues can now be identified much faster enabling significantly more payments to be made on Terms.

An opportunity to obtain savings that were previously untapped.

  • Electronic payment can be implemented during the roll out of electronic invoicing. Historically, suppliers have resisted electronic payment, as banks do not provide detailed remittance data identifying what invoices are being paid. IDS can carry this data from Hospitals to suppliers, facilitating increased electronic payment. Some suppliers are even offering discounts for just settling electronically on normal terms.
  • Early payment discounts are now a real opportunity since the majority of invoices can be received, assessed and approved within the timeline for early payments discounts.
  • Reduced dispute resolution effort (a costly process) is also realized. Paper invoices take substantially longer before exceptions are identified. An electronic invoice can go through an automated process to identify incorrect or incomplete items. These invoices can then be returned to vendor by IDS for resolution, rather than having Hospital staff perform this work.
  • Increased spend-visibility into purchasing details provides the purchasing department with important information required for controlling maverick spend and negotiating improved agreements with suppliers, especially with non-purchase order suppliers.

An increase in operational flexibility.

  • Permits centralization of Accounts Payable processing since electronic processing is no longer location dependant. Hospital groups can now consider a more centralized Accounts Payable process, which can further reduce cost and improve operational controls.
  • Shields suppliers from any Hospital changes in accounting systems or centralization, as suppliers are connected to IDS and not the Hospital directly. Hospitals are similarly insulated from such changes at suppliers.

An increase in the green agenda.

  • Reduced use of paper, which helps both Hospitals and suppliers to reduce unnecessary waste and use of natural resources, thereby promoting their green agenda. Converting paper invoices to electronic is a significant green item and a single tree is required to produce sufficient paper for approximately 2,000 to 3,000 invoices.