treasury services
J.P.Morgan’s Order-to-Pay For more information, please contact your J.P. Morgan Treasury Services representative or visit us at jpmorgan.com/ordertopay.
Š2010 JPMorgan Chase & Co. All Rights Reserved. JPMorgan Chase Bank, N.A. Member FDIC. All services are subject to applicable laws and regulations and service terms. Not all products and services are available in all geographic areas. Eligibility for particular products and services is subject to final determination by J.P. Morgan and/or its affiliates/ subsidiaries.
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B2220910
J.P. Morgan’s Order-to-Pay is invoices and payments made simple. J.P. Morgan’s Order-to-Pay is a Webbased solution that automates the accounts payable (AP) process. It helps companies optimize their working capital, improve operational efficiency and achieve cost savings. By integrating buyers and suppliers via a secure settlement network, Order-to-Pay automates: J Purchase order (PO) delivery J Invoice and payment processing J Discount management Using Order-to Pay, companies can improve their purchasing efficiency as well as manage payment terms with their suppliers more effectively.
J.P. Morgan’s advanced approach to AP automation enhances clients’ control over the end-to-end procureto-pay process. Order-to-Pay helps companies achieve effective payables automation by: J Speeding the migration away from paper and manual processes J Reducing data entry and exception management J Capturing discounts related to payables spend For many businesses, AP automation via Order-to-Pay turns AP processing into a profit center.
In addition, the transition to Orderto-Pay is both simple and flexible. Order-to-Pay acts as an extension of an organization’s existing payment systems by seamlessly integrating into enterprise resource planning (ERP) applications. Fully scalable, it provides the flexibility to expand functionality as business needs change.
AP Automation—Beyond speed and cost savings
Order-to-Pay: The Second Wave in Savings
While AP automation is key to both accelerating invoice processing and reducing transaction costs, many business managers find that AP automation also improves their firm’s bottom line. This second wave of benefits can mean:
While the first wave of automation in the payments industry focused on strategic sourcing and procurement, the second wave focuses on the other half of the procureto-pay process: the order-to-pay cycle. This cycle includes all the activities associated with transaction settlement—from the delivery of a PO through the receipt of an invoice for processing, and the payment and delivery of a remittance.
J Optimizing working capital through DPO management with tools such as Commercial Card, Dynamic Discounting or Supply Chain Finance while increasing return on invested capital (ROIC)
As an extension of a client’s payments infrastructure, Order-to-Pay works with existing business systems. The automation of PO delivery, invoicing and payments compresses the invoice approval cycle (to three to five days in most cases), enabling clients to realize the additional savings they are looking for from their procurement, sourcing and ERP systems.
J Lowering overhead costs through outsourcing alternatives (i.e., imaging, lockbox) J Helping to improve corporate accountability and management of compliance requirements In fact, some managers have found that the value they gain from payables automation may lead to an increase in earnings per share.
By seamlessly integrating with existing ERP applications, J.P. Morgan manages the technology—updating the system to meet evolving needs—while the client maintains control over his transactions. And, with the ability to process invoices in days, instead of weeks or months, J.P. Morgan’s Orderto-Pay clients not only benefit from greater efficiency in processing electronic and paper invoices but also unleash savings from early-payment discounts.
“Organizations need to automate the front end of the process around invoice receipt, either through front-end imaging, outsourced scan-and-capture or preferably through electronic J.P.Morgan Order-to-Pay clients have achieved: J More than 70% cost savings in invoice processing (paper to electronic) J 96% on-time payment efficiency rate
J Up to 100% paper elimination using imaging and e-invoicing
invoicing, and combine this with automated workflow to compress the invoice approval cycle.” PayStream Advisors, 2010 –Commercial Payments International, 2010
J A 550% supplier transaction ramp in two years by engaging Order-to-Pay Supplier Services
“Best-in-class AP departments, which hold an 84%
J Discounts on 30% of spend processed
advantage in invoice processing costs over their peers, credit e-payables solutions and a resolute focus on process improvement for their efficiency gains.”
...all while maintaining days payable outstanding (DPO) at 35 days
–Aberdeen Group, 2009 JP MORGAN 1
J.P. Morgan’s Order-to-Pay—AP Automation made simple Implementing an automated AP solution is quick and easy with J.P. Morgan’s Order-to-Pay. Innovative integration and configuration tools eliminate the need for hardware installation while Order-to-Pay’s self-service portal gives clients immediate access to a full range of AP automation tools. Order-to-Pay capabilities are robust and flexible, suitable for the most basic needs to the most complex. As a scalable platform,
Order-to-Pay provides the ability to meet clients’ most pressing AP automation needs today with the option to expand the offering and incorporate associated functionality and benefits over time.
Purchase Order Delivery
Invoice Processing
Payments Processing*
Working Capital Management*
Order-to-Pay enables buyers to deliver POs to their suppliers electronically. Suppliers can use this PO information to quickly create accurate invoices, aided by realtime validation. These invoices can in turn be processed quickly and efficiently by the buyer, resulting in prompt payment and increased payment-discount capture.
Order-to-Pay facilitates the receipt and processing of invoices originating from the supplier in both electronic and paper format. It prepares invoices for payment by applying comprehensive validations, assigning accounting allocations and documenting established approvals. Automated invoice processing helps lower costs, improves control and insight into a buyer’s payables, enhances supplier relationships and increases early-payment discount opportunities.
Order-to-Pay provides a comprehensive approach to payments—offering multiple payment options (e.g., ACH, card, wire and check payments)—to help streamline processing, reduce overall payables and minimize payment-related expenses. As a long-standing leader in ACH originations for 35 years, J.P. Morgan’s payment processing functionality offers a combination of process cost savings, card-related incentives and the replacement of paper checks with lower-cost electronic payment alternatives—ideal for paperless treasury operations.
Order-to-Pay provides companies with multiple payment and settlement channels to generate working capital opportunities across their financial supply chains through a combination of process automation, commercial card settlement and payables term extensions. Through balance sheet management, clients can leverage J.P. Morgan’s fortress balance sheet via card programs or supply chain finance or leverage their own cash through earlypayment discounts.
Regardless of the scope of the solution, J.P. Morgan’s Order-to-Pay can immediately streamline transaction processing and optimize working capital.
Buyer Portal
Supplier Portal
Buyers Treasury Purchasing AP
Order-to-Pay Network
With extensive experience in providing proven discounting programs, Order-toPay enables clients to generate discounts that they weren’t previously able to capture as well as discounts on additional spend. J.P. Morgan’s patent-pending, dynamic discounting tool facilitates the delivery of working capital better than any other AP solution in the industry and is backed by the most experienced team.
> PURCHASE ORDER DELIVERY > INVOICE PROCESSING > PAYMENT PROCESSING > WORKING CAPITAL MANAGEMENT
Suppliers Treasury Order Management Billing AR
With average savings of $3
million
for
every
$1 billion in corporate spend, the total return on investment from AP automation is something that
few
enterprise
initiatives can match. *Capabilities vary by country. For details, please speak with your J.P. Morgan representative.
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Benefits of AP Automation Through J.P. Morgan’s Order-to-Pay J.P. Morgan’s Shared Supplier Network of More Than 100,000 Suppliers J.P. Morgan’s supplier network is designed exclusively for AP automation collaboration. More than 100,000 suppliers rely on J.P. Morgan’s Order-to-Pay service, requiring nothing more than a Web-browser to gain access and connect to their buyers. Eliminating the need for one-to-one vendor setup and maintenance, buyers can quickly establish the responsibilities, tools and methods for engaging with suppliers. Participation in the Order-to-Pay network empowers suppliers by accelerating collections, motivating their adoption of the network through:
J Readily available details—regarding the status of all invoices and payments J Analytics that deliver detailed reporting to suppliers—giving them insight into their cash flow J A single-page Web form for small or infrequent suppliers—enabling them to submit electronic, non-PO invoices without registration, login accounts and training J Dedicated J.P. Morgan Supplier Services and Technical Support team
J Transaction efficiency—so suppliers get paid faster J Multiple settlement options—making selecting a payment type and date easy
With a cumulative transaction value of more than $350 billion and an everexpanding global network of suppliers, Order-to-Pay’s shared supplier network makes it possible to activate a critical mass of suppliers for electronic processing and quickly capture early-payment discounts. The result is streamlined processes, minimized transaction time frames and enhanced operational savings.
In a 2009 survey of J.P. Morgan’s Order-to-Pay suppliers, 90% of suppliers felt that Order-to-Pay has helped improve invoice submission and status visibility.
Features At-A-Glance J Fully electronic PO and invoice processing: Complete electronic processing of the delivery of POs and receipt of invoices through the Order-toPay network results in real-time visibility and validation of critical business transactions for buyers and suppliers. J Significant paper processing reduction: Supplier invoices may be accepted in any format and are processed electronically in Order-to-Pay. PO and non-PO invoices are validated, coded and routed for approval. Real-time status updates are available for buyers and suppliers.
J Dynamic discounting: Order-to-Pay promotes dynamic discounting to provide suppliers with an opportunity to accelerate receivables in exchange for a discount on approved net terms. J Multiple payment options: ACH, card, wire or check payments streamline payment processing and allow detailed remittance information to be viewed with every payment.
J Shared supplier network: Order-to-Pay users have access to a network of more than 100,000 suppliers. Participation in the network spans small, midsize and Fortune 1000 suppliers for PO and non-PO spend, and requires minimal enrollment effort for new suppliers.
Minimal Effort
Maximum Value
The power of J.P. Morgan’s Order-to-Pay is its ability to integrate with any buyer’s and supplier’s current IT systems, yielding immediate benefits to their businesses. As a hosted, Web-based service, Orderto-Pay’s self-configuration tools enable businesses to simply and quickly adjust their AP automation application to suit business needs and deploy quickly with minimal IT resources. The result is a smooth path to automation, reduced expenses and access to often-missed discounts and savings. In addition, upgrades are implemented without disrupting current business operations.
J.P. Morgan’s Order-to-Pay solution is designed to enable clients to realize a positive bottom-line impact by automating the payables process. This can be accomplished by accelerating processing and enhancing discount management, improving spend management, strengthening working capital and building stronger trading partners.
J.P. Morgan’s Order-to-Pay Solutions Consulting Team is staffed by industry experts who support clients in selecting the functionality that best meets their business goals and objectives. Buyers and suppliers participating in our Order-to-Pay network receive comprehensive support, including implementation, integration and administration. Transaction monitoring and benchmarking are available through dynamic reporting and analytical comparison tools. Best-in-class systems availability, disaster recovery, business continuity and problem resolution are provided.
Risk management is also enhanced by the Order-to-Pay platform. Through proactive alerts and notifications regarding resolving exceptions, Order-to-Pay helps the corporate finance organization drive the exception resolution process and avoid financial reporting errors stemming from the aging of payables and lost or misplaced invoices. And, by eliminating manual data entry, J.P. Morgan’s Order-to-Pay system bypasses a potential source of errors that can increase the exception-processing load.
Plus, with the resources of J.P. Morgan behind Order-to-Pay, clients benefit from our size, scale and depth of talent—which give us the capabilities we need to manage complex client needs. Working with J.P. Morgan as a partner, your organization will not only gain efficiencies through payables automation but will also benefit from the full breadth of our supply chain management expertise. We can help identify working capital and liquidity opportunities across your financial supply chains through a combination of earlypayment discounting, commercial card program rebates and DPO extension. Our collaborative platforms from card to supply chain finance enable the efficient exchange of open account information between buyers and suppliers, creating a holistic approach to supply chain management.
The value of the J.P. Morgan offering is best highlighted by our commitment to quarterly checkups with our clients to ensure that our solution is meeting their needs. This enables us to further strengthen our relationships and makes it possible for us to anticipate our clients’ future requirements.
“What makes this team so exceptional is that they are extremely customer service oriented while still maintaining the integrity of their solution.” –Apparel Retailer
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Making It Simple With J.P. Morgan’s Order-to-Pay, businesses can help eliminate paper handling, manual data entry, invoice errors, mail delays and phone inquiries. The results are improved purchasing and payment efficiency and reduced processing costs by 50% or more. The benefits are better use of payablesrelated working capital and expanded capture of early-payment discounts.
Simplicity at the Core Making AP automation simple is at the core of J.P. Morgan’s Order-to-Pay solution and is inherent in its key features: J A comprehensive, easy-to-use and integrated platform, accelerating ROI J An extensive shared supplier network, including more than 100,000 suppliers around the globe J Compelling value proposition to suppliers, expanding supply chain penetration J Tools for supplier recruitment and support, making adoption fast and easy
CASE STUDIES Finance, Procurement and Shared Services managers are seeing how automation can enhance business performance and improve financial results. By streamlining payables— from PO delivery to invoice processing and payment—organizations are finding new sources of savings, optimizing working capital to significantly reduce costs, and improving corporate accountability and compliance.
Leading Discount Broker Discovers New Working Capital Solutions Overview: Already quite lean and efficient, the Payables department of a leading discount brokerage firm initially partnered with J.P. Morgan to automate payments via ACH. Seeking further efficiencies, the brokerage firm once again turned to J.P. Morgan. By implementing discounting capabilities within Order-to-Pay, a revenue stream was created, allowing vendors to access financial incentives to weather the recovering economy. Results:
The Clear Provider of Choice Clients can rely on J.P. Morgan as a trusted partner and provider of choice for AP automation based on our: J Financial strength J Flexible delivery models J In-house, comprehensive payment capabilities
“We chose J.P. Morgan as our partner because their solution is very mature, and we want to deal with a vendor who is going to be around for the long haul.” -Large Insurance Company
J Revenue stream: Dollar invoice discounts for 2009 were up 62% over 2008 figures. On average, J.P. Morgan’s Order-to-Pay clients who follow discount management best practices realize about twice the captured allowances compared to those using e-invoicing alone. J Self-service: Suppliers are able to take control of the process, which typically results in fewer exceptions and inquiries. J Vendor financing options: More vendors than ever have been using the Pay Me Now feature—a 385% increase from 2008 to 2009. Such dynamic cash acceleration enables vendors to accelerate payments on approved invoices, leverage flexible discounts to meet funding requirements and improve cash forecasting.
Telecommunications Company Automates Entire Payables Process and Maximizes Discounts
J Scalable technology platform
Overview:
J World-class customer service
Receiving up to 50,000 supplier invoices each month through an inefficient, highly distributed purchasing network, the company’s AP department was looking for a solution to help improve payment efficiency and visibility into the process. The Order-to-Pay solution not only accelerated process cycle times and visibility but also provided the added benefit of managing overall payment terms and capturing millions of dollars in discounts.
We have more experience as a financial institution in e-payables and a demonstrated record of delivering AP efficiencies to our clients.
Results: J 80% adoption of electronic invoicing occurred over a 3 ½-year period. J 500% increase in payment discounts was achieved over a 3-year period. J Increased visibility for the company and its suppliers meant users checked payment status at will online, which reduced calls to the AP help desk.
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Reduced financial settlement cycle from 80 to 20 days and resolved exceptions in real-time on 16% of invoices. Generated discounts on more than 50% of invoices and 25% of payables spend going through network.
For more information, please contact your
–Major Healthcare Institution
J.P. Morgan Treasury Services representative or visit jpmorgan.com/ordertopay.
J.P. Morgan’s Order-to-Pay allows us to eliminate paper, increase visibility into our payables transactions and lower our cost of operations. The opportunity to capture more early-payment discounts will significantly increase the return on investment. By leveraging Order-to-Pay’s industry experience and our suppliers already in J.P. Morgan’s Orderto-Pay network, we will achieve our corporate finance objectives quickly and with little risk.” –Large Telecommunications Company
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treasury services
J.P.Morgan’s Order-to-Pay For more information, please contact your J.P. Morgan Treasury Services representative or visit us at jpmorgan.com/ordertopay.
Š2010 JPMorgan Chase & Co. All Rights Reserved. JPMorgan Chase Bank, N.A. Member FDIC. All services are subject to applicable laws and regulations and service terms. Not all products and services are available in all geographic areas. Eligibility for particular products and services is subject to final determination by J.P. Morgan and/or its affiliates/ subsidiaries.
We are committed to making a difference by using paper with postconsumer fiber.
SGS-COC-003710
Produced by Treasury Services Global Marketing.
B2220910