E-Invoicing Could Reduce Procurement Costs in 2013
A newly released survey conducted by INTTRA reveals that e-invoicing could be the driving force behind reducing procurement costs in 2013. The survey focused on high-volume freight forwarders and shippers and includes several major global logistics providers.
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The results of this survey are quite convincing—81 percent of respondents say they prefer to receive invoices electronically in 2013. The reasons are multi-fold, but the primary driving factor is simple cost reduction. A number of hassles common to standard invoice procedures are alleviated or made more efficient through the use of e-invoicing. Benefits such as easier dispute resolution, reduced processing time, and more rapid receipt of payments are just some of the reasons named for the desire to switch to an electronic invoicing and payment-processing model.
Reducing errors alone can save vast resources. In fact, the current error rates for invoicing in the freight industry range between 20 and 25 percent. Seventy-seven percent of surveyed providers indicate that dispute resolution tops their list of time-sucking activities related to invoicing, and 93 percent of respondents indicate that they prefer to resolve disputes electronically.
Electronic dispute resolution reduces non-payments and other delays, which can have a domino effect on the entire procurement and supply chain processes—a domino effect which can eventually affect share values, taking months to recover from.
The process also becomes more transparent, with the ability to pack more data access into a single invoice, and standardizing the process across all suppliers improves overall accuracy and efficiency. When processes are not standard across vendors, dispute resolution can become even more complex. E-invoicing can produce savings between 50 and 80 percent.
For procurement leaders, this is good news. Not only is the job simplified, but you’ll save time and money. That sets the foundation for more efficient allocation of resources across the enterprise and frees up available funds for redistribution in other core areas. [/show_to]
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