How much does it cost your organization to answer a vendor invoice status inquiry?
Don’t feel badly if you don’t have the answer at your fingertips. According to a recent survey by Financial Operations Networks and InvoiceInfo, only 1 out of 10 respondents track AP customer service metrics, making the cost to communicate with vendors the most overlooked AP activity metric.
But these costs can really add up as vendors become more cash-flow sensitive. Interestingly, most cost-per-invoice calculations don’t get granular enough to break out the cost of these activities.
How much is at stake? Just take payment status inquiries, for example. Statistics show vendor inquiries are made on 3% to 15% of the invoices a company receives and each inquiry takes 3 to 20 minutes to resolve.
Of greater concern is that vendor communication activities are increasing. Today’s vendors email and call about invoice payment status with increasing frequency, putting additional strains on already scarce AP resources. Vendor questions can include “Have you received our invoice?” or “Has our invoice been approved?” or “Has our invoice been paid?”
The good news is, InvoiceInfo has developed a simple, convenient, effective and easy-to-use tool to track AP customer service costs. The AP Vendor Communication Activity Analysis is available to you at no cost. And of course, once you have the metrics, you’re on your way to deciding how best to contain the cost and to measure the positive impact of vendor communication operational improvements.
If you would like to learn how much you are spending to answer invoice inquiries and communicate with vendors, call (678) 335-5735 today or request your AP Vendor Service Activity Analysis online.