The idea of Evaluated Receipts Settlement \u2013 making payment based on receipt information without matching to an invoice \u2013 is an approach that\u2019s been around for decades, most notably cited in the 1993 best seller, \u201cReengineering the Corporation\u201d, by Michael Hammer and James Champy.\u00a0\u00a0 The concept is simple: If your Purchasing Department and your suppliers can agree on details for what is being purchased and at what price, the Accounts Payable process can be all but eliminated, with payments generated automatically once ordered items are recorded as being received.<\/p>\n
Now, 20 years later, based on a recent Peeriosity iPoll, while an impressive 56% of member companies have implemented ERS, 7% attempted to implement and failed.\u00a0 Of the remaining 37%, less than half are actively considering implementation.\u00a0 Here are the details: <\/p>\n
Looking specifically at the companies that do not currently use ERS, 15% of these companies are successfully using another electronic method (probably EDI<\/a>).\u00a0 For the remaining 85% who aren\u2019t using ERS for a reason other than \u201cwe prefer another electronic method\u201d, the primary reasons cited include purchase order quality issues, concerns about use tax compliance, and just not having considered the possibility of using ERS.<\/p>\n Here are some representative comments from iPoll respondents:<\/p>\n A Peeriosity PeercastTM<\/sup> in the Accounts Payable research area featured a global $6B manufacturing company that recently completed a push to increase their use of ERS.\u00a0 While the benefits of reduced costs and improved quality of the Purchasing process<\/a> were overwhelming, a number of unintended consequences were noted, including:<\/p>\n Key findings of the implementation included:<\/p>\n While implementation issues are likely to be more complex than you might expect, the benefits of pursuing ERS as part of your efforts to reduce processing costs are often clear and compelling.\u00a0\u00a0 It might be time to take a closer look.<\/p>\n How is your company reducing costs in Accounts Payable<\/a> and improving the quality of Purchasing and Receiving processes?<\/p>\n Who are your<\/em> peers and how are you collaborating with them?<\/p>\n 1 <\/sup>\u201cPeercastsTM<\/sup>\u201d are private, professionally facilitated webcasts that feature leading member company experiences on specific topics as a catalyst for broader discussion.\u00a0 Access is available exclusively to Peeriosity member company employees, with consultants or vendors prohibited from attending or accessing discussion content.\u00a0 Members can see who is registered to attend in advance, with discussion recordings, supporting polls, and presentation materials online and available whenever convenient for the member.\u00a0 Using Peeriosity\u2019s integrated email system, Peer MailTM<\/sup>, attendees can easily communicate at any time with other attending peers by selecting them from the list of registered attendees.<\/p>\n Peeriosity members are invited to login www.peeriosity.com\/shared-services\/<\/a> to join the discussion and connect with Peers.\u00a0\u00a0 Membership is for practitioners only, with no consultants or vendors permitted.\u00a0 To learn more about Peeriosity for Shared Services, Click here<\/a>.<\/p>\n <\/p>\n <\/span><\/span><\/span><\/p>","protected":false},"excerpt":{"rendered":" The idea of Evaluated Receipts Settlement \u2013 making payment based on receipt information without matching to an invoice \u2013 is an approach that\u2019s been around for decades, most notably cited in the 1993 best seller, \u201cReengineering the Corporation\u201d, by Michael Hammer and James Champy.\u00a0\u00a0 The concept is simple: If your Purchasing Department and your suppliers […]<\/p>\n <\/span><\/span><\/span><\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"acf":[],"yoast_head":"\n<\/p>\n
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