Study confirms demise of the paper invoice for O2C
The Institute of Financial Operations has released its 2014 Order-to-Cash (O2C) Automation Study showing email is now the most common channel used for B2B transactions, and an increasing number of organizations are moving to e-invoicing.
The IFO survey top findings:
- Companies committed to begin e-invoicing within the next 12 months has more than doubled to 5% (from 2% in 2013)
- Around 10% of companies plan to automate order processing within the next 6 months, and 5% within the next year.
We say, this is great news! But, we also say, anyone looking to move towards e-invoicing please be wary...
The success of e-invoicing projects is very often limited due to supplier reluctance to come on board. That is because traditional e-invoicing solutions often charge suppliers to submit their invoices, it often demands significant technological changes for the supplier, and/or the supplier has to duplicate the creation of their invoices.
The most effective e-invoicing solutions will normally request that suppliers send their invoices – from whatever technology they currently use – via email as a PDF. That’s it. The smartest e-invoicing technology takes the data directly from the PDF (no OCR!) and populates your database directly with the information.
Because there is no negative impact on suppliers this method achieves high on-boarding rates, without any upheaval on either side.
The IFO report showed that there has been a significant decline in senior level support for e-invoicing and other P2P and O2C automation technologies, in fact 50% of respondents cited factors such as a lack of support from senior leadership to pursue process changes as a reason for a lack of progress.
E-invoicing is a great solution and will bring many benefits to an organization, but for it to work you need suppliers to come on-board, and for this you need to remove the barriers to supplier adoption which traditional e-invoicing solutions bring.
Do you want to know if PDF Invoicing could work for you?