2018 ELECTRONIC ACCOUNTS PAYABLE BENCHMARK SURVEY · Welcome to the 2018 Electronic Accounts Payable Benchmark Survey. The survey is designed to understand and advance the successful
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Welcome to the 2018 Electronic Accounts Payable Benchmark Survey. The survey is designed to understand and advance the successful use of Electronic Accounts Payable (EAP or virtual cards). Eighteen major financial
institutions in the U.S. and Canada, as well as the National Association of Purchasing Card Professionals are
supporting and participating in this study. There is no charge for participation. A strict confidentiality agreement is enforced and included on the next page.
BENEFITS OF PARTICIPATION
In recognition of your contribution of time and effort, organizations completing this survey will receive free of
charge the following:
1. A PDF copy of the 2018 Electronic Accounts Payable Benchmark Survey Results, will be sent on
completion of the survey.
2. A PDF copy of the 2015 Electronic Accounts Payable Benchmark Survey Results downloadable
immediately upon completion of this survey.
3. The first 400 respondents who complete the survey will also be awarded with an Amazon.com gift
certificate ($100 for the first 50, $50 for the next 100, and $25 for the next 250).
The 2018 Results will include current market information and expert analyses that will provide your organization
with:
o Benchmark norms that will support a "segment-specific" self-assessment of performance and rationalize
dialogues about financial incentives,
o "Best practice" insights and customer commentary to assist in the development of strategies to optimize
spending and derive the greatest value from EAP,
o Market trend information to add depth in the case to top management about the benefits of EAP, and
o Information that assists in the "day-to-day" management of administrative activities and control choices
associated with EAP
IMPORTANT SURVEY INSTRUCTIONS
This survey is an in-depth examination of how organizations use and involve EAP in the procure-to-pay process.
Participants will derive the greatest benefit if all questions are answered. Most questions can be answered by the
EAP program administrator with simple selections or by providing common statistics. With the exception of a
few required questions, if any question does not apply to your organization or if the answer is unavailable for any reason, simply leave the item blank. Completion of the survey should take approximately 35-75 minutes,
depending on information availability.
If you have any questions about the survey, contact Professor Richard Palmer by email
RPMG Research Corporation maintains a policy of strict confidentiality with respect to your responses to this survey. RPMG Research Corporation, its employees and agents, shall keep all individual responses to the “2018
Electronic Accounts Payable Benchmark Survey” confidential and shall not disclose the responses to any person
or other entity. In addition, all information, analysis, responses, and other data that is specific to or identifies a specific EAP provider shall be kept confidential and only released to that specific provider. This confidentiality
agreement will apply to any person in the employment of or assisting RPMG Research Corporation in the analysis
of survey data or compilation of survey results. Notwithstanding the fact that individual responses are and shall
remain confidential, the aggregated responses of survey participants shall be made public in benchmark results, professional presentations, and published and unpublished documents authored by RPMG Research Corporation
personnel bound by this agreement.
By providing responses to this survey, you agree to allow RPMG Research Corporation to combine your response with others to create survey reports, presentations, and other analyses that describe best use and value delivered
by Electronic Accounts Payable. (Required)
Agree Do Not Agree
Note: Without consent, you may not participate in the survey. If you would like to obtain more information about the survey or our benchmark reports, please contact Professor Richard Palmer by email
The 2018 Electronic Accounts Payable Benchmark Survey, including questions and other content herein, is the
copyrighted work of Richard Palmer and Mahendra Gupta of RPMG Research Corporation. Any use or
duplication of the questions or content of this survey without the express written consent of the authors will be a violation of United States copyright law.
Introductory Note: Throughout this survey, we will inquire about your organization’s use of “Electronic Accounts Payable” (EAP).
We define EAP as any non-plastic commercial card account with a “dynamically-adjustable” credit limit assigned to match the amount of each transaction. It is typically used in the process to pay for goods and services
after an invoice has been received. There is no limit to the type of goods or services that may be paid in this
manner (including, but not limited to office supplies, computers, equipment, inventory, business services, travel,
etc.). EAP may be referred to as “virtual cards,” “ePayables,” “single-use accounts,” “virtual payables,” “buyer-initiated payments,” “straight-through processing,” or other similar terms. Traditional ghost card
accounts (with preset fixed credit limits) are not considered EAP.
1. Does your organization use “electronic accounts payable” (EAP) to pay suppliers? (Required) Yes
No
If you answered “No,” please see message below. Otherwise, continue with Question 2(a).
Due to your organization’s lack of EAP use, this is the end of your survey.
If you would like to obtain more information about the survey or our other commercial card benchmark
reports, please contact Professor Richard Palmer by email ([email protected]) or
phone (618-559-5137).
2(a). Information about the person responsible for completion of the survey:
2(b). Your organization-assigned email address (Required)*: ________________________________________
* In order to receive the free PDF copy of the 2018 Electronic Accounts Payable Benchmark Survey Results and early response gift certificates (if applicable), you must provide your email address at your
organization. Personal email addresses will not be accepted.
2(c). Would you like to be notified about future RPMG commercial card surveys and reports? Yes No
4(a). Please select the best description of your company’s geographic footprint.
A North American company with all operations and sales in North America
A North American company with operations and sales to customers outside of North America
A non-North American company with operations and sales in North America
A non-North American company with all operations and sales outside of North America Other (please describe): __________________________________________________________
4(b). Please select the one industry classification that best describes your company:
Administrative and support services Pharmaceuticals
Advertising and marketing Publishing and media
Agriculture, forestry, and fishing Professional, scientific, and technical services
Arts and entertainment Real estate, rental, and leasing services
Automotive retailing and service Social services
Construction Software and information technology
Educational services Telecommunications and data processing services
Finance, insurance, and banking Transportation
Food service and restaurants Tourism and leisure
Hospitals Utilities (gas, electrical, and water)
Lodging and hospitality Warehousing and distribution services
Management of facilities/companies Wholesale and retail trade
Manufacturing Other (please describe):
Mining, oil and gas extraction, pipeline,
and refining services
__________________________________________
5. Please provide a brief description of your organization’s business activities and/or primary
9. Average monthly spending on EAP (all platforms combined)
currently is: (Required)* $__ __ __, __ __ __, __ __ __ .00
10. Average number of monthly transactions on EAP (all
platforms combined) currently is: (Required) * __ __ __, __ __ __, __ __ __
* If the most recent month of EAP activity is not representative of your typical activity, please report your
spending and number of transactions for an average month. -----------------------------------------------------------------------------------------------------------------------------------------
12(a). Please describe how purchases via EAP differ from purchases via plastic cards (select all that apply)
Compared to purchases my organization makes with plastic cards, EAP purchases are…
for goods and services of higher dollar values
for purchases from suppliers with whom the organization conducts a high number of transactions
for goods and services which are not allowed to be paid by plastic cards
for transactions requiring additional approvals or controls prior to payment
different in other ways (please describe): __________________________________
13. What is the largest single transaction paid by any EAP platform at your organization in the past year?
$10,000 or less $200,001 to $300,000
$10,001 to $50,000 $300,001 to $500,000
$50,001 to $100,000 $500,001 to $1,000,000
$100,001 to $200,000 More than $1,000,000 (please specify): $_____________
14. How long has your organization been using EAP?
Less than one year 3-4 years 7-8 years 11-12 years
1-2 years 5-6 years 9-10 years 13 years or more
15. Does your organization use EAP to its full potential? Yes No
For “No,” please answer 15(a). Otherwise skip to 16.
15(a). Please select the answer that best completes the sentence:
EAP spending at my organization would be _____ if we used EAP to its full potential.
50% higher 4-5 times higher 8-9 times higher 12-15 times higher
2-3 times higher 6-7 times higher 10-11 times higher more than 15 times higher
16. Does your organization’s use of EAP occur within an “integrated payables solution”
where the bank or EAP provider enables payments to suppliers through multiple payment channels, based on rules reflecting your organization’s preferences?
Yes No
For “No,” please answer 16(a). Otherwise skip to 17.
16(a). Does your organization plan to use an “integrated payables solution” in the next
22(a). What actions does your organization take to support enrolling and maintaining the EAP-accepting supplier
base?
To enroll and maintain the EAP-accepting supplier base, does your organization…
Does your
organization
engage in
activity?
(1). Directly contact suppliers to inform them of the EAP program? Yes No
(2.) Have a clear EAP acceptance on-boarding process for new suppliers? Yes No
(3). Have a process in place for suppliers to self-enroll for acceptance of EAP? Yes No
(4). Have senior leadership reach out to suppliers directly? Yes No
(5). Target suppliers based on “fit” for EAP (e.g., high transaction volume)? Yes No
(6). Include a requirement to accept EAP in RFPs or at renewal of supplier contracts? Yes No
(7). Help suppliers seek and obtain lower interchange rates for large-ticket purchases? Yes No
(8). Provide internal incentives to employees who successfully enlist suppliers? Yes No
(9). Integrate EAP in a “dynamic discounting” payment strategy (where suppliers have
input into the method, terms, and timing of payment)? Yes No
(10). Have standard terms that differ across different payment methods? Yes No
(11). Offer faster payment with EAP to encourage acceptance (e.g., pay immediately upon
invoice receipt)? Yes No
(12). Extend payment terms for non-EAP payment methods (e.g., pay at 60 days instead of
30)? Yes No
(13). Revisit discussions with suppliers that initially refuse EAP payment at least annually? Yes No
22(b). Which action by your organization has been most effective in on-boarding and maintaining supplier acceptance of EAP? (Please identify the line number from the question above, or describe any
27. Please estimate the percentage of all transactions within certain dollar ranges currently paid by the payment methods specified below. If you are unsure about the breakdown for each payment method and a
reasonable estimate cannot be made, please continue with the next question. Otherwise, each column
SECTION 5: EAP Purchase Activity and Impact on Other Payment Methods
30. In an earlier response, you indicated that your monthly EAP spending is $[Q9]. Please breakdown that spending among each of the good and service categories listed below, based on an average month. If you
do not typically conduct spending in a given category, please leave the row blank.
Please note: The column total will automatically sum for you, and should equal $[Q9].
Category of Purchases
Of Your Average Monthly
EAP Spending, How Much
Was Within This Category?
(Note: Your answers in the
column should sum to your
total reported monthly
spending of $[Q9])
Catering/cafeteria/food service $__, __ __ __, __ __ __.00
34. Please indicate (a) the percentage of total spending in each category that is currently being paid with EAP, and (b) whether your organization believes EAP spending will increase in each category over the next 3 years.
NOTE: Answers for each row are independent and the column should not sum to 100%. For example, 2015 survey respondents indicated 22% of total spending for computer purchases were paid with EAP. If no
spending in the category was paid by EAP, simply leave the row blank.
Category of Purchases
(A)
Percentage of Total
Spending in This
Category
Currently Paid by
EAP
(Note: each row is
independent and can
range from 0% to
100%)
(B)
Will EAP
Spending in
This Category
Increase in the
Next 3 Years?
Catering/cafeteria/food service __ __% Yes No
Computer/mobile hardware, software, and peripherals __ __% Yes No
Capital assets
(depreciable asset purchases other than office equipment, computers,
software, construction materials, or infrastructure) __ __% Yes No
Contractual repair and maintenance
(e.g., contractor services) __ __% Yes No
Education and training __ __% Yes No
Construction materials and infrastructure
(e.g., buildings, roads, bridges, pipelines, etc.) __ __% Yes No
Insurance __ __% Yes No
Inventory __ __% Yes No
Lease and rental payments __ __% Yes No
Mail delivery __ __% Yes No
Media and advertising __ __% Yes No
Office equipment and supplies
(e.g., desks, stationary, toner, etc.) __ __% Yes No
Operating goods and supplies (e.g., general maintenance, industrial, lab, or shop supplies, uniforms, fuel,
36. Please identify the expected change in overall EAP spending at your organization over the next five years
(2018 through 2022):
Increase Stay the same Decrease
For “Increase,” please answer Questions 36(a) and 36(b), followed by Question 37. For “Decrease,” please
answer Questions 36(c) and 36(d), followed by Question 37. Otherwise, go directly to Question 37.
36(a). Please identify the three most important reasons for expecting an increase in overall EAP spending at your
organization over the next five years.
My organization expects increased spending due to:
an increase in overall company revenue (or budget)
efforts to target commodities for EAP payment
additional good and service categories that can be paid with EAP (please specify): ______________
efforts to target high-dollar transactions greater acceptance of EAP by suppliers
changes in organizational incentives for EAP use
enactment or improved enforcement of policies requiring EAP payment other (please describe): __________________________________________________________
36(b). Please indicate (by one selection) the expected average percentage increase per year in overall EAP
spending over the next five years (ending December 2022).
Expected Average Increase per Year in EAP Spending
for the Next 5 Years (Ending December 2022)
(select one)
Less than 1% per year 7% to 8% per year 16% to 20% per year 41% to 50% per year
1% to 2% per year 9% to 10% per year 21% to 25% per year 51% to 75% per year
3% to 4% per year 11% to 12% per year 26% to 30% per year 76% to 100% per year*
5% to 6% per year 13% to 15% per year 31% to 40% per year More than 100% per year
* For example, a 100% increase indicates that spending is expected to double the previous year’s spending
36(c). Please identify the primary rationale for expecting a decrease in your organization’s overall EAP spending over the next five years.
My organization expects decreased spending due to:
a decrease in overall company revenue (or budget)
reduced supplier acceptance of EAP
surcharges added to goods and services by suppliers for EAP payment greater use of another payment method (please identify): ______________________________
dissatisfaction with the EAP program
other (please describe): __________________________________________________________
36(d). Please indicate (by one selection) the expected average percentage decrease per year in overall EAP
spending over the next five years (ending December 2022)
Expected Average Decrease per Year in EAP Spending
for the Next 5 Years (Ending December 2022)
(select one)
Less than 1% per year 7% to 8% per year 16% to 20% per year 41% to 50% per year#
1% to 2% per year 9% to 10% per year 21% to 25% per year More than 50% per year
3% to 4% per year 11% to 12% per year 26% to 30% per year
5% to 6% per year 13% to 15% per year 31% to 40% per year
# For example, a 50% decrease indicates that spending is expected to be one-half of the previous year’s spending.
37. Please indicate the expected changes in spending across the different EAP platforms used by your
organization.
Type of EAP Platform Expected Change in Spending over the Next 5 Years
Virtual account maintained by supplier Increase No change Decrease Do not use
Virtual account maintained by buyer Increase No change Decrease Do not use
Single-use or rotating pool of accounts Increase No change Decrease Do not use
Buyer-initiated payments or straight-
through processing Increase No change Decrease Do not use
38. Assume a “transaction cost” to pay an invoice includes the administrative (and labor) cost of activities including: (a) inputting data into accounting records, (b) creating payment instructions, (c) filing
documents, (d) generating and transmitting payment, and (e) reconciling transaction with bank and
accounting records.
Please estimate the transaction cost at your organization to pay invoices by:
(a). traditional paper check $__ __ __.00 per transaction
(b). EAP payment $__ __ __.00 per transaction
(c). ACH payment $__ __ __.00 per transaction
39. Please select the answer that best completes the sentence:
A bill from my EAP provider for EAP charges arrives every…
1 day 15 days 30 days Other (please describe):
__________________ 7 days 20 days 45 days
40. Payment to your EAP provider for EAP charges is due ____ after the close of the billing cycle (i.e.,
the grace period)
1 day 10 days 20 days Other (please describe):
__________________ 7 days 15 days 30 days
41. Has your organization received a rebate (or revenue share) from your
provider for EAP spending in the past year? Yes No
For “Yes,” please answer Questions 41(a) through 41(c). Otherwise, skip to Question 42.
41(a). As a percentage of EAP spending, please identify the level of rebate nearest to that received by your
organization in the past year.
0.10% or less 0.81% to 0.90% 1.61% to 1.70%
0.11% to 0.20% 0.91% to 1.00% 1.71% to 1.80%
0.21% to 0.30% 1.01% to 1.10% 1.81% to 1.90%
0.31% to 0.40% 1.11% to 1.20% 1.91% to 2.00%
0.41% to 0.50% 1.21% to 1.30% Greater than 2.00%
0.51% to 0.60% 1.31% to 1.40% (please specify): _____%
0.61% to 0.70% 1.41% to 1.50% Not sure
0.71% to 0.80% 1.51% to 1.60%
41(b). Does your organization pay its EAP provider early (by shortening or
minimizing the grace period) in order to receive a larger rebate? Yes No
41(c). If your organization no longer received a rebate for EAP spending, how likely is it that your
organization would continue to use and maintain its EAP program?
An Enterprise Resource Planning package (e.g., SAP, Oracle, Microsoft Dynamics) that integrates key business areas such as planning, purchasing, inventory, sales, marketing, finance, and human
resources
An in-house constructed system
Other (please describe): ___________________________________________________
48. Please complete the following statement with the best answer:
My organization’s EAP spending is ___ integrated with our accounting information/ERP system.
0% (EAP transactions are not at all integrated with the accounting/ERP system)
1% to 20%
21% to 40%
41% to 60%
61% to 80%
81% to 99%
100%
49. Overall, how satisfied is your organization with its ability to integrate EAP spending data into its
organizational accounting/ERP system?
Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied
Note: For this survey, the term “administrator” is used to describe personnel who have primary responsibility for oversight and management of the EAP program. Please report information about EAP administrative time
commitment on a “full time equivalent” (FTE) basis where, for example, two half-time workers equal one FTE
worker or three half-time workers equal 1.5 FTE.
50. The current amount of administrator time dedicated to running the EAP program at my organization is:
SECTION 12: Mobile Technology, Blockchain, and E-Procurement
54. Does your organization transmit EAP (virtual card) numbers to mobile devices
to authorize and make purchases? Yes No
If you answered “No,” please answer Question 54(a). Otherwise, skip to Question 55.
54(a). If the functionality was available, would your organization transmit
EAP numbers to mobile devices to support employee purchases in the future? Yes No
55. Does your organization use blockchain technology in any of its business-to-business
transactions?*
* Note: A blockchain is a shared database that is managed by a global network of computers.
Information held in the database is distributed and continually reconciled by the computers in
the network. The computers are often referred to as nodes, miners, or peers. The computers create and maintain their blockchain by validating and transmitting entries. Entries are the
data that is published by the users of the network. Common blockchain applications are smart
contracts, asset registration, and cybercurrencies.
Yes
No
For “Yes,” go to Question 55(a), then proceed to Question 56. For “No,” answer Question 55(b), then
proceed with Question 56.
55(a). Please provide us with an example of your organization’s use of blockchain applications?
55(b). Does your organization plan to use blockchain technology in any business-to-
business transactions in the next three years?
Yes No
Not Sure
56. Does your organization use EAP to pay for purchases made via e-procurement software?*
* Note: e-procurement software is defined as any web-based software application that enables
employees to purchase goods from approved electronic catalogs in accordance with agreed
upon prices and company buying rules, while capturing necessary purchasing data in the process. The employee’s selection of a good for purchase from a supplier catalog is
automatically routed through the necessary approval processes and protocols.
57. Do units of your organization inside the U.S. and Canada pay suppliers outside of the U.S. and Canada
with EAP?
Yes No N/A; my organization does not have U.S. or Canadian business units
For “Yes,” please answer Questions 57(a) and 57(b). Otherwise, skip to Question 58.
57(a). Approximately what percentage of your organization’s EAP spending is paid to suppliers outside of the U.S. and Canada? Do not include spending conducted by units outside of
the U.S. and Canada __ __ __%
57(b). Please indicate whether your organization’s U.S. and Canadian units use EAP to pay any suppliers within
the regions listed.
Region
Do your U.S./Canadian Units Use EAP to
Pay Suppliers in this Geographic Region?
Africa Yes No
Asia and Asia Pacific Yes No
Australia Yes No
Europe Yes No
Mexico Yes No
Middle East Yes No
South and Central America, Caribbean Yes No
58. Does your organization have units located outside of the U.S. and Canada that use
EAP to pay for goods and services in their local currency? Yes No