Going paperless: reaping the benefits of electronic invoicing

| 0 Comments
SaraPike.jpgEvery year, millions of invoices are exchanged between buyers and suppliers in the supply chain. However, most of these invoices are either in paper or e-mail format - creating inefficiencies for the buyer’s accounts payable and the supplier’s accounts receivable.

"Considerable cost savings can be realised by migrating to an electronic invoicing framework," Sara Pike, Supplier Engagement Manager, Ariba, an SAP Company, tells SmartProcurement.

Electronic_invoicing_benefits.pngElectronic invoicing (e-invoicing) is the electronic delivery of invoices and related information by a company to its customers. Procurement organisations are adopting and implementing this functionality in order to improve their payment performance and mitigate invoice discrepancies, labour-intensive manual processing, and much more, see sidebar image.

Electronic invoicing is already in use by some of the largest companies in the world and is beneficial to many departments and industries, including:

  • Finance and Accounts Payable – time and cost savings owing to touchless processing and efficient supplier collaboration.
  • Projects – Multiple line items can be invoiced as phases of a project are completed or delivered. Easy to use and efficient, there is no need to wait for the project to be fully completed to receive payment.
  • Construction – With stock control maximised, companies can easily determine stock levels at any point in time - allowing them to optimise delivery times and reduce lead times.

With e-invoicing, suppliers now have the opportunity and means to know when and how much they will be paid as the information is readily available and right at their fingertips.

Case Study

Following is case study to illustrate this point.

Probe CAMS serves the heavy duty automotive, mining, and construction equipment industry through a national dealer network with a variety of services.   Prior to opting for e-invoicing, many business processes for Probe CAMS were manual or via email due to lack of automation. Emailing documents was unreliable, and lacked data and accuracy.  They were unable to consolidate, manage, or control business processes and required an improved audit trail that would allow them to track the full order history—from order through to payment.

The company deployed electronic invoicing in 2011 and tapped into the network and the cloud-based invoicing solutions delivered, which provided Probe CAMS with new software that was fully operational within hours of system go-live.

The results were better management and more automated processes; a reduction in time to complete tasks; more efficient forecasting; cost savings; improved traceability of orders; and the elimination of work and data duplication and data inconsistencies.

“We previously had a huge backlog of a significant amount of invoices where no action was taking place, which has now been cleared thanks to electronic invoicing.  All our outstanding issues have been addressed,” stated Nicolas Glossoti, Managing Director - Debtors, Probe CAMS Systems.

Probe CAMS joins a growing number of buying and selling organisations in the southern hemisphere that are leveraging Ariba’s solutions to improve their performance and profits.  Electronic invoicing is revolutionising the way service providers deal with their customers.

Contact spike@ariba.com today to learn more about how your organisation can leverage e-invoicing to overcome your business challenges and to achieve significant benefits.

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

Career opportunites

Marketing Executive

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Geographical Area: Midrand GautengSalary: Market related2 Years Marketing ...More

Head: Supply Chain Management (P6)

  • <500 000 >500 000 Limpopo Permanent Procurement Management Supply Chain
North east of the Tropic of Capricorn, just ...More

Purchasing and Supply Manager

  • <500 000 >500 000 Gauteng Permanent Procurement Management Supply Chain
Purchasing and Supply ManagerThe CSIR has a vacancy ...More

Senior Manager Public Sector

  • >500 000 Gauteng Permanent Procurement Management Projects / Category Management
 Senior Manager Public SectorTotal Cost to Company: R1.1mil ...More

Senior Manager: Mining

  • >500 000 Gauteng Industrial Engineer Permanent Projects / Category Management
Senior Manager: MiningTotal Cost to Company: R900k – ...More

SUPPLY CHAIN MANAGER

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
SUPPLY CHAIN MANAGER(Total Cost to Company R750k – ...More

Master Data Management Advisor

  • >500 000 Gauteng Permanent Procurement Management Projects / Category Management
 MASTER DATA MANAGEMENT ADVISOR(Total Cost to Company R750k ...More

PRO - Performance Reporting

  • >500 000 Permanent Procurement Consultant Procurement Management Projects / Category Management
PRO - Performance ReportingTotal Cost to Company: R800k ...More

PRO - Risk & Governance

  • >500 000 Gauteng Permanent Procurement Management Projects / Category Management
PRO - Risk & GovernanceTotal Cost to Company: ...More

Supply Chain Site Manager

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
Supply Chain Site ManagerTotal Cost to Company R1mil ...More

Chief Financial Officer

  • >500 000 Gauteng Permanent Procurement Officer / Specialist
Chief Financial OfficerTotal Cost to Company R1.5mil – ...More

Process Engineer- WMS

  • <500 000 >500 000 Industrial Engineer Permanent Projects / Category Management Western Cape
Process Engineer- WMS(Total Cost to Company R350K – ...More

Forecast Analyst

  • <500 000 Analyst Permanent Procurement Management Western Cape
Forecast Analyst(Total Cost to Company R350K – R500K) Location: ...More

Group Category Manager: Indirects

  • >500 000 Permanent Procurement Management Projects / Category Management Western Cape
Group Category Manager: Indirects(Total Cost to Company R700K ...More

Group Category Specialist: Chemical

  • >500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Group Category Specialist: Chemical(Total Cost to Company R700K ...More

Sourcing Specialist - 3rd party

  • >500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Sourcing Specialist - 3rd partyTotal Cost to Company ...More

Global Procurement Lead (Processing)

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
 Global Procurement Lead (Processing)Location: JohannesburgTotal Cost to Company ...More

Global Supplier Performance Manager

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
Global Supplier Performance Manager Location: Johannesburg  Cost to ...More

Group Customer Service Lead

  • <500 000 >500 000 Analyst Gauteng Permanent Procurement Officer / Specialist
Group Customer Service Lead  Location: Johannesburg As the ...More

Business Intelligence Manager

  • <500 000 >500 000 Gauteng Permanent Procurement Management Supplier / Business Development
Business Intelligence Manager Location: JohannesburgLead the development, implementation, optimization ...More