For suppliers

While eInvoicing provides significant benefits to buyers, the benefits to suppliers should not be underestimated. Improved customer satisfaction, reduced credit collection administration costs, better capital management and cash-flow control are all benefits that apply to suppliers. Some of the key supplier benefits include:

Faster payments

eInvoicing eliminates the delays that result from mailing, routing, sorting and re-keying paper documents. Customers can easily route your invoices for fast processing and approval because the data is immediately available electronically in their workflow systems. As a result, invoices can be paid on time, days sales outstanding (DSO) can be reduced by four days or more and cash flow is improved.

Reduced costs

According to recent analyst studies, companies that have automated their accounts receivable (AR) process have realised major cost savings. Delivery costs can be reduced by as much as 80 per cent due to savings in postage, materials, processing and storage. Further savings result from a reduction in reprint requests, customer service calls and the ability to implement electronic payments. Also, having an electronic invoice archive saves the costs associated with the storage of paper copies.

Fewer rejected invoices

eInvoicing enables straight-through processing directly from your AR system to your customer’s accounts payable application. eInvoicing eliminates the buyer’s need to manually re-key the data, reducing the potential for data entry errors. As a result, invoices are less likely to be rejected and customers can start processing them without delay.

Increased Productivity

With electronic delivery of invoices you know that your customers have received their invoices and precisely when they were received, reducing the need for status calls. Improved accuracy resulting from eInvoicing reduces the amount of rework required and volume of dispute phone calls.

Enhanced account reconciliation

Suppliers are often challenged to reconcile the payments they receive from customers against the original invoices they submitted. Customers will often consolidate a number of invoices to allow for a single bank transfer and suppliers usually then need to call the buyer’s AP department to understand the details behind funds received. With eInvoicing customers can send an electronic remittance advice with the payment, providing detailed accounting of invoices paid as well as debits, credits and adjustments taken. Additionally, this helps in situations where customers claim deductions against an invoice due to shipment problems such as damaged or missing items.

Improved customer satisfaction

Perhaps one of the biggest potential benefits for suppliers comes in the form of enhanced customer satisfaction. Less invoicing processing and payment issues means that customers receive the level of service that they would like. Companies that have implemented eInvoicing often experience much lower customer churn.

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