e-Invoicing: Now’s the time to jump in

Finally, the promise of paper-free purchasing and processing is nearing reality. You’ve heard the rumblings since the 1970s, that all procurement transactions were going “electronic” — and watched as the efforts have stumbled and stalled.

But there are two factors at work today that are making paper-free operations (e-invoicing) much more feasible:

• The cost of the necessary technology is decreasing
• Companies’ interests in cutting costs, with suitable ROI, is increasing

The payoff is handsome, according to a recent Aberdeen study.

Best-in-class purchasing operations realized these benefits:

• 91% savings in processing invoices
• 46% trimmed from process cycle time
• 12% drop in late payments, and
• 30% decrease in time responding to inquiries

Need some ammo to make your case with the execs?

There’s a combination of “out with the bad, in with the good” examples that’ll help draw a clear picture of the ROI that can be gained from making steps further into electronic payment processing.

Companies that putting electronic payment systems into practice are reporting great improvements in these common problems:

• Long billing cycles. Paper creeps through the mail and through A/P and A/R, often adding up to days or even weeks. That’s without even factoring in lost documents, filing errors, etc.
• Fraud. Paper documents are much easier to alter or substitute. Changes in electronic billing documents leave a trail.
• Visibility. Need to know the status of a transaction? Good luck if it’s on paper. Electronically, it’s just a couple of button punches away.
• Accessibility. One copy of paperwork, one person can use it. What if someone else needs to see it? If it’s paper, it means making copies — which opens the door to problems. If it’s available electronically, everyone can see it at once.
• Storage. Look at the pile of paper you generate every week, and where you have to store it. Ouch. Electronic documents are stored on top of your desk, without the mess.
• Going green. You’ll also do the world a favor by reducing the amount of paper your company consumes.

Source: Procurement Alert