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Do You Know Where Your Processes Are?
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If your accounts payable department is not gathering metrics, you may want to consider starting. Metrics can give your department valuable information such as how much you're spending to process invoices and how long your days payable outstanding are.
This issue features valuable information for starting a metrics program as well as an opportunity to participate in an ongoing benchmarking survey. Metrics are important because improvements don't happen by accident...at least not very often (see Just for Fun!). |
| Patrick Harbin – Editor
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The Importance of Metrics |
Metrics are – or should be – an important part of all accounts payable departments. They provide a detailed picture of what is going on in the department and are a starting point for making process improvements.
The following are eight steps to implementing a metrics program:
- Set Objectives
- Buy-in; gaining support
- Chart out current process
- Start measuring and documenting
- Communicate first results
- Brainstorm improvements and develop action plans
- Establish customer service agreements
- Schedule ongoing evaluation
To help with your own metrics objectives, check out The Accounts Payable Network's on-demand video presentation, Metrics and Benchmarking, featuring Judy Bicking, former accounts payable director for Johnson & Johnson's European Project.
Learn about other video presentations and watch two-minute previews at TAPC's AP Store.
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| What's New With Nichols? |
Procrastination has always been part of the human condition. When asked about addressing a particular issue in their AP departments, many managers simply answer "we're working on it."
In his latest entry, Tom says the answer he prefers to hear is "we're doing that today," indicating the department has already identified the need to implement best practices. He also gives advice for less proactive departments. Go to Tom's Blog.
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Just for Fun! |
Did you know that the first batch of penicillin was thrown away? Or that Superglue was originally developed to hold gun parts together?
Many great – and not so great – discoveries of the past were actually made by accident. An article on Pocket Gadget lists ten popular inventions that were invented by accident. Who knew that we have a melted chocolate bar to thank for the microwave oven?
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