SAP Digital Supplier Network

Business Case

March 2020

INTERNAL
Common business challenges and opportunities

15
Employees are tied up
in a typical invoice process. 88% Companies are fielding calls from suppliers chasing
payment status. Most suppliers calling at least once a week.

63% 34%
Receive duplicate invoices Companies are being charged late payment fees as a
with many being paid. consequence of late payments.

Other:
• Overpayment and accurate billing
• Discounts capture
• Employee experience
• Visibility of cash-flows

Source: Vanson Bourne and SAP Concur – Exploring the AP landscape

500 AP and finance cross industry organizations formed this research.

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL 2

Typical Business Case Benefits for the SAP Digital Supplier Network

For organisations of all sizes (values are per annum)

€500m revenue €1b revenue €2b revenue

€235m spend €455m spend €835m spend
40k AP invoices 100k AP invoices 170k AP invoices
Ensure your suppliers bill you accurately
Mitigate overpayment of 0.1% - 0.3% of in-scope spend €69k €134k €245k
Reduce the cost of processing invoices
Increase AP productivity through automation >25k invoices per FTE €48k €84k €119k
Capture missed early payment discounts
Capture discounts on ~30% of invoices with a nominal face value of 2.2% €96k €186k €342k
Five other key benefits to consider
- Avoid late payment charges and order delays/cancellations
- Reduce time spent on calls from suppliers chasing invoice status
- Avoid paying duplicate/fraudulent invoices €???k €???k €???k
- Free-up broader employees from unnecessary approvals and issues
- Improve supplier relationships and service level expectations
Total annual steady-state benefits >€213k >€404k >€706k
Typical 3-year ROI
(inclusive of implementation, software and 3 year adoption curve) >5.0x >6.5x >8.6x
Payback period < 12 months

Based on benchmark data from SAP and analyst/research groups.

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL 3

Thank you.