AP Assessment and Transformation
At Velocity Procurement, we work hand in hand with our customers to guide them through their transformation journey. Because every organization is unique, we build a targeted strategy to achieve the best long term success, while utilizing the best parts of the existing AP infrastructure to achieve tangible wins for the department.
Our methodology focuses on your company’s maturity in the critical areas of people, process and technology. Every transformation begins with a deep understanding of the customer’s current state. To do this, we engage our Consulting team to conduct process audits and a proficiency assessment. These results help Velocity Procurement produce a gap analysis and identify specific opportunities for improvement with a detailed transformation roadmap.
From there, our consulting and technology experts begin to execute the plan for transformation. Each plan is custom-fit for each client which often includes: operational re-design, technology implementation, business processes improvement, strategic sourcing, change management and training delivery. In order to assist clients with sustaining the transformation, Velocity Procurement’s Services team provides flexible out-tasking solutions for technical and operational support.
AP organizations are constantly asked to streamline their operations and “Do more with Less”. Velocity Procurement’s AP Transformation helps clients develop a strategic plan to meet these expectations while achieving goals such as:
- 100% financial visibility
- Faster period close processes
- Reduced internal and external fraud risk
- Better visibility and control of key AP metrics
- Strategic Alignment between Sourcing, Procurement, and Accounts Payable
- Improved strategies around supply chain finance strategies for the organization
4 Phase Transformation Methodology
Velocity utilizes its proven 8-step AP assessment methodology to complete the end-to-end analysis of the as-is state of Accounts Payable.
- Internal AP process reviews
- Associated departmental interviews (Audit, Risk, Procurement, etc)
- Data Analysis to understand current performance around key metrics
- Review existing technology infrastructure and how it is used
Documentation of as-is state, and areas of high risk for the business.
- Critical to understand where we are today
- Plan can be built based on today’s infrastructure and capabilities, resulting in a more realistic approach
- Identify and mitigate any critical risks to the business
Develop a formal understanding of the Client's existing AP function by collaborating with our Client's key business process owners for each of the 9-Dimensions to define where they are today, where they want to be tomorrow and the actions that will bridge that gap.
- Develop and publish an internal survey to better understand individual competencies, culture, and aptitude towards change
- Interviews with key stakeholders to understand mid and long-term objectives for the department as well as the organization.
- Benchmark findings from the analysis against external metrics
- AP capability report highlighting the organization's maturity around the 9 dynamics of Accounts Payable.
Performance benchmarking is the most effective way to understand the current state of operations, areas for opportunity, and begin to prioritize improvements
Action items assigned to priorities and recommendations
- Develop a Project Charter for each Change Initiative
- Perform the Independent Project Efforts According to the Charter(s)
- Develop the Implementation and Change Management Plan(s)
A prioritized list of recommendations, each with their own specific action plan, business case, and timeline.
The first two phases of the AP transformation often uncover more improvement opportunities than a company can implement at once. Developing a strategic plan backed by a business case provides a clear long-term direction in a companies’ journey towards best in class.
Lead and manage the implementation of the change initiatives.
- Formal AP transformation steering committee
- Break each initiative into a project
- Measure effectiveness
- Tangible results beyond project deliverables.
- For each change initiative that is implemented, a business case and it's correlating performance metrics will be tracked
Building a strategic plan is just a step on the path to process improvement. Utilizing Velocity Procurement’s experienced staff to help execute the plan allows for less disruption of the departments’ daily work while utilizing our resource’s experience and knowledge.
“Life is like accounting, everything must be in balance” ― Unkown