How a Leading US Healthcare Services Provider Achieved 80% Reduction in Invoice Processing Time & Optimized Cash Flow Through AP Automation

Quantifiable Outcome Summary


Group 18

$2-3 Million 

Working Capital Impact 

Group 18-1

80% Reduction 

 Invoice Processing Time 

Group 18-2
$10,000 Annual

Cost Savings Achieved

Role Filled

Interim AP Manager / AP Consultant

Project Detail

80% Time Reduction

Implemented Stampli, an AI-based AP system, reducing invoice processing time from 5 minutes to 1 minute per invoice 

8-16 Hours Weekly Savings

With 30-50 invoices daily, achieved significant labor time savings for the AP team 

$10,000 Annual Savings

Based on $25/hour AP temp rate, achieved substantial cost reduction through automation 

Improved Vendor Management

Migrated 80% of critical vendors to ACH, reducing payment delivery time from 7+ days to ~3 days 

Enhanced Cash Flow

Successfully negotiated extended payment terms from N30 to N45 with approximately 50 vendors, affecting $2-3 million in AP balance 

 

About The Client

The Healthcare Services Provider operates in the healthcare services industry, providing toxicology testing, behavioral health, and compliance-focused solutions to healthcare providers and organizations.

Industry: Healthcare Services

Scope: The client serves a diverse range of customers, including commercial properties, homeowners associations, resorts, public parks, golf courses, healthcare facilities, and educational institutions.

 

Key Benefits & Lessons Learned

Process Automation & Time Savings:
The transition to Stampli resulted in a more structured, automated AP workflow, reducing manual effort and increasing accuracy 

Improved Financial Visibility:
AP reporting dashboards and vendor portals increased transparency, reducing the volume of vendor inquiries 

Scalability & Compliance:
Implemented HIPAA-compliant AP workflows, ensuring data security while standardizing AP processes 

Time Management is Critical:
Successfully balancing full AP management duties while implementing Stampli underscored the importance of strong project management and prioritization skills 

Solutions & outcomes

Solution Outline
The project strategy was multi-faceted that included prioritizing integration timing, creating a robust integration roadmap, developing a close calendar checklist and uniform account reconciliations, centralizing key accounting functions, investing in new positions, and correcting the ERP set-up.

Project Outcome Summary
The project delivered significant improvements in AP efficiency, cost savings, and cash flow management through system implementation and process optimization. By implementing Stampli, automating workflows, optimizing payment terms, and transitioning vendors to ACH, the client achieved faster invoice processing, reduced costs, and improved working capital position. These enhancements provided better visibility into AP metrics and freed up staff time for higher-value activities, ultimately supporting the company's cash management objectives.

Client Challenges

Lack of AP Structure: The AP function lacked organization, with manual processes, unclear vendor records, and frequent errors 

Cash Flow Sensitivity: The company faced tight cash constraints, making vendor negotiations crucial for liquidity management 

Inefficient AP System: The previous AP system (AVID) was ineffective for invoice automation, vendor payment management, and data visibility

Manual Payment Processing: Weekly AP payment processing took a full day to complete, limiting the AP team's bandwidth for other tasks 

Key Project Elements & Deliverables

Systems & Tools Used: NetSuite (ERP), Stampli (AP automation), AVID (legacy AP system), Power BI (reporting) 

Timeline: 3 months total, with Stampli implementation occurring alongside full AP management 

Data Migration & Integration: Migrated 1,100 open invoices into Stampli and mapped them to NetSuite for seamless syncing 

Key Deliverables: 

  • Stampli implementation and integration with NetSuite 
  • AP workflow automation for invoice processing and approvals 
  • Vendor payment profile standardization and ACH transition 
  • Payment term optimization with 50+ vendors 
  • Power BI dashboards for AP metrics and reporting 
  • Training and knowledge transfer for AP staff 

Project Objectives & Business Needs

Key Project Objectives: 

  • Implement Stampli to automate invoice processing and AP workflows 
  • Clean up vendor payment profiles and transition key vendors from checks to ACH 
  • Improve cash management by extending vendor payment terms and enhancing financial reporting 
  • Increase AP process visibility through reporting dashboards and vendor self-service portals 

Business Needs: 

  • The client's AP function was inefficient, with unstructured processes and vendor payment delays 
  • Better invoice automation and vendor payment management was needed 
  • Cash flow management required improvement through optimized payment terms 
  • AP staff needed better tools and processes to increase productivity
SOLUTION IMPLEMENTATION 

Solution Outline: The project implemented several key enhancements to the AP function: 

  • AP System Implementation: Fully implemented Stampli, optimizing invoice workflows, syncing with NetSuite, and improving compliance 
  • Financial Workflow Automation: Automated invoice approvals and vendor payments, cutting down manual AP processing time by 80% 
  • Payment Term Optimization: Negotiated N30 to N45 terms for 50+ vendors, positively impacting working capital by +$2 million 
  • Vendor Payment Method Enhancement: Transitioned 80% of critical vendors to ACH, ensuring faster, more reliable payments
  • Process Visibility & Reporting: Built Power BI dashboards to track AP statistics, reducing vendor inquiries and internal reporting bottlenecks 

Outcome Details

Milestones Achieved: 

  • Reduced invoice processing time from 5 minutes to 1 minute per invoice (80% reduction) 
  • Saved 8-16 hours of weekly labor time for the AP team 
  • Achieved approximately $10,000 in annual cost savings 
  • Transitioned 80% of critical vendors to ACH, reducing payment delivery time 
  • Extended payment terms from N30 to N45 with approximately 50 vendors 
  • Reduced weekly AP payment processing time from a full day to one hour 

Outcome Details: 

  • Efficiency Gains: The 80% reduction in invoice processing time significantly improved AP team productivity
  • Vendor Payment Optimization: ACH transition improved vendor satisfaction while reducing check-related processing costs
  • Cash Flow Improvement: Extended payment terms with 50 vendors positively impacted $2-3 million in AP balance, improving working capital position
  • AP Payment Processing Efficiency: The dramatic reduction in weekly payment processing time freed up staff for other high-value activities
  • Process Visibility: Power BI dashboards provided better insights into AP metrics, reducing vendor inquiries and improving decision-making 

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