When it comes to creating intelligent solutions to meet business challenges among today’s complex accounts payable landscape, SAP has been moving the needle for decades.
Now, I’m thrilled to share that SAP was the only company that was positioned in the Leaders category of all three IDC MarketScape reports – IDC MarketScape: Worldwide Accounts Payable Automation Software for Large Enterprise 2024 Vendor Assessment (doc #US51740824, July 2024); IDC MarketScape: Worldwide Accounts Payable Automation Software for Midmarket 2024 Vendor Assessment (doc #US52378624, July 2024); and IDC MarketScape: Worldwide Accounts Payable Automation Software for Small Businesses 2024 Vendor Assessment (doc #US52378824, July 2024). SAP’s accounts payable solutions, built with AI-first principles, continue to enable the accounts payable function to embrace its strategic role as it becomes a top priority for business operations in today’s challenging macro environment.
IDC analyst Kevin Permenter adds: “SAP’s performance in the IDC MarketScape for Accounts Payable Automation Software reports across all three market segments is a testament to the breadth, depth, and reach of SAP Ariba and SAP Concur accounts payable offerings. SAP’s accounts payable offerings infused with AI-first principles, complemented with a strong ecosystem and the unique value proposition of SAP Business Network as a frictionless mechanism for buyer and supplier collaboration, show SAP’s strength in this market. SAP Ariba and SAP Concur invoicing offerings help enable companies of all sizes to move to autonomous processing and enable accounts payable and procurement teams to leverage invoices as a strategic asset for growth and profitability.”
IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of technology and suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each supplier’s position within a given market. The Capabilities score measures supplier product, go-to-market, and business execution in the short-term. The Strategy score measures alignment of supplier strategies with customer requirements in a 3-5-year timeframe. Supplier market share is represented by the size of the icons.
Why SAP Is a Leader
The IDC MarketScape reports are divided by market size, evaluating SAP Ariba invoicing solutions for large enterprise and upper midmarket and Concur Invoice for small business and lower midmarket. I believe SAP’s positioning speaks for itself – this recognition showcases our role as a leader in the accounts payable automation space as we work to help our customers modernize critical business processes to transform the way they approach financial management. Here’s why I believe IDC MarketScape positioned SAP as a Leader across all three markets:
Strong Ecosystem and Seamless Integration
The IDC MarketScape Worldwide Accounts Payable Automation Software for Large Enterprises report notes that vendors should “consider SAP if you are looking for a well-established provider with a robust ecosystem of financial management products that can fit needs of any size business in virtually any industry.”
SAP Business Network Is a “True Differentiator”
Additionally, the report highlights SAP Business Network as a “frictionless mechanism” for buyer-supplier collaboration. Our robust network of trading partners helps make it easier than ever for businesses to ensure invoicing accuracy and compliance while staying connected to their trading partners through our extensive network. The report further notes that, “SAP Ariba source-to-pay suite combined with the network provides accounts payable teams an effective, intelligent, and near-touchless way to manage the invoice-to-pay cycle, helping buyers and suppliers digitize and modernize their source-to-pay processes.”
SAP Helps Accounts Payable Run Better
The accounts payable function finds itself in a complex landscape of rising interest rates, tightening monetary policies, and supply chain disruptions. Among these challenges, many companies have become accustomed to curveballs that threaten their agility and future success. SAP offerings can help accounts payable teams address core pain points:
- Reduce lengthy invoice approval times. With SAP’s AI-infused, end-to-end business processes across source-to-pay and ERP solutions, our customers can cut through cycle times with autonomous processing – from invoice submission to reconciliation. SAP Business AI can capture header and line item data fields, finding patterns from historical data to help increase accuracy with each invoice capture.
- Minimize high percentage of exceptions. With global e-invoicing mandates on the rise, customers can reduce exceptions upfront while ensuring compliance. SAP’s business rules can validate invoices in real time against local government portals as needed. With SAP Business Network, suppliers can submit invoices electronically, streamlining the process and reducing costs.
- Avoid late supplier payments. With working capital management and our early payment offerings within the Taulia portfolio, accounts payable teams can pay suppliers on time while leveraging invoices as a strategic asset for growth and profitability, strengthening their relationships with suppliers.
Customers Report Incredible Outcomes
Here are a few examples highlighting what customers have achieved after using SAP Ariba and SAP Concur solutions to help improve accounts payable processes:
- Baker Hughes looked to SAP Ariba solutions to reduce its average invoice approval cycle time to just 1.5 days with 50% of supplier invoices transacted electronically in the first year.
- Smith+Nephew achieved an 84% first-pass invoice-matching rate.
- Navantia S.A. S.M.E. processes 99% of invoices automatically for over 9,000 vendors.
- American Eagle Outfitters achieved 75% invoice-count compliance for 48,000 annual invoices.
- Recordati Rare Diseases now completes its end-to-end invoice management process in half the amount of time.
I believe this recognition as a Leader in the 2024 IDC MarketScape reports for Worldwide Accounts Payable Automation Software for Small Business, Midmarket, and Large Enterprise markets emphasizes our commitment to driving a new era in redefining accounts payable automation.
Learn more about our accounts payable solutions at sap.com.
Baber Farooq is senior vice president for Market Strategy Procurement Solutions at SAP.