About Metrics & Benchmarking
Determining the cost to produce an invoice (CPI) can present challenges for AP & P2P professionals who are seeking to benchmark. What items and functions get counted in the calculations? And does it matter whether the work is done manually or electronically? These factors can dramatically impact the CPI result.
By Pam Miller, APMD
A metrics program provides valuable information to help manage your AP department effectively. The challenge lies in determining how many metrics should be keptand which ones. This review will help you to launch a metrics program, validate what you are currently doing, or get your existing program back on track.
Measuring 'Inputs' and 'Outputs'
These benchmarks are simply counts of how many invoices arrived and how many
Benchmarking against past performance not only measures improvement, but can also provide results that are reliable and meaningful. It offers a tool by which to measure and strive for continuous improvement.
The three-person AP department supporting the four main hospitals at Jones Lang Lasalle at Beaumont Health System in Royal Oak, MI was experiencing multiple problems with invoice processing and payments. They decided to benchmark the challenges and assess what steps would relieve the problems.