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Quarterly AP Productivity Index

The AP Productivity Index, developed by International Accounts Payable Professionals (IAPP), PRGX Global, Inc. (Nasdaq: PRGX), and APQC, is believed to be the first tool of its kind to gauge the impact of AP metrics such as operations costs, staff productivity, turnaround time, and error rates on the two most critical components to the health of the AP operations: efficiency and effectiveness. The index will be updated quarterly and provides finance leaders with a unique, actionable benchmark, along with insights into the practices used in highly productive AP operations or AP Top Performers.

To participate in the AP Productivity Index Survey, follow this link: www.apqc.org/apindex

The AP Productivity Index, unveiled in May 2010, is the first tool of its kind to gauge the impact of AP metrics such as operations costs, staff productivity, turnaround time, and error rates. Developed by IAPP in partnership with PRGX Global Inc. (PRGX) and the American Productivity and Quality Center (APQC), this unique, actionable tool will help CFOs and AP leaders play a more informed role in advancing organizational objectives.

Among the other key findings of the AP Productivity Index:

  • The AP Productivity Index revealed that AP Top Performers tend to be larger organizations with annual revenues of more than $5 billion. This is likely the result of the economies of scale available to these organizations.
  • AP Top Performers are highly automated, resulting in a higher percentage of invoices received electronically and a lower percentage of manual keying
  • 62 percent of AP Top Performers use shared services centers.
  • AP Top Performers are found in all industries, but industries with particularly high index scores include petroleum/chemical, and retail/wholesale.
  • AP Top Performers reside primarily in the Americas, with U.S.-based operations having an especially high percentage of companies with high index values.
  • There is a direct correlation between AP Top Performance and shorter cycle times to enter invoice data into the system and approve and schedule T&E reimbursements.
  • AP Top Performers make greater use of purchasing cards (p-cards) than other organizations.
  • There is no correlation between AP Top Performance and automated disbursement methods. The AP Productivity Index revealed no correlation between AP Top Performance and AP outsourcing. In fact, outsourcing is relatively rare among AP Top Performers

    Using data provided to APQC by AP operations nationwide, the AP Productivity Index is comprised of the two metrics most critical to the health of AP operations: efficiency and effectiveness. APQC applies a sophisticated algorithm and weighting model to its data on these metrics to determine the AP Productivity Index. The Index was calculated using a sample of 218 responding organizations.