Build your business case for e-invoicing
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Most of us are aware of the benefits of getting rid of paper invoices. We save time, money and reduce errors. But what elements should you take into account when you’re building a business case? And better yet, how do you sell this type of digital transformation to your internal stakeholders. Which parts of your organization need to be involved Join our webinar to find out how to build your business case for e-invoicing and understand how to get this onto the agenda of your key stakeholders.
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Build your business case for e-invoicing
- 1. An OpusCapita Webinar September 25, 2019 Building your business case for e-invoicing
- 2. AGENDA ▪ Introduction ▪ eInvoice market ▪ Common pain-points ▪ Savings potential ▪ Invoice automation ▪ Next steps ▪ Case study
- 3. Rowan Lemley (host) INTRODUCTIONS Matts Ek, Product Manager, OpusCapita
- 4. OPUSCAPITA BY THE NUMBERS Established 1984 ~350 Employees 65m € Revenue 2018 3000 Customers with users in over 100 Countries Over 1 Million Suppliers and 100,000,000 eTransactions Over 40,000,000 products and services bought & sold Over 130 Billion € in payments annually
- 5. GLOBAL PAYMENTS PAYABLES AUTOMATION SOURCING & SUPPLIER ENGAGEMENT RECEIVABLES AUTOMATION OPERATIONAL PROCUREMENT CASH MANAGEMENT Comprehensive supplier information management and agile sourcing for goods and services. Improve your cash inflows and reduce the time spent matching payments to invoices. Create a centralized product catalog with a modern guided buying experience with full mobility. Consolidate and optimize your in- house bank and liquidity management functions. Enable control and compliance over AP while dramatically lowering transactional costs. Connect directly to over 200 banks, SWIFT certified for global payment coverage. OpusCapita is a platform that combines source-to- pay & cash management, enabling full source-to-cash process optimization. HOW WE SUPPORT YOU CONNECT, TRANSACT AND GROW ON THE OPUSCAPITA BUSINESS NETWORK
- 6. Building your business case for e-invoicing
- 7. NEW NORMAL The digital transformation is no longer an option – It´s the imperative. NEW TECHNOLOGY Growing number of disruptive “next-gen” technology offering alternatives to legacy platforms and old processes by offering a new approach. Background
- 9. Invoicing challenges & benefits
- 10. LONGER LEAD TIMES AND DELAYED PAYMENTS INCREASED COST – HANDLING INVOICES LACK OF DATA AND POOR PREDICTABILITY Common Pain Points In Accounts Payable
- 11. INEFFICIENT AND MANUAL PROCESSES INCREASED COST - HANDLING INVOICES HANDLING OF DATA AND COMPLIANCY NEEDS Common Pain Points In Accounts Receivable
- 12. 1.10 € 3.00 € 4.00 € 2.50 € 4.80 € 2.20 € 0 € 0 € 1.20 € 2.00 € 2.00 € 0.80 € Paper Electronic, Automated 17.60 € 6.40 € * * Including processing cost by 3rd party provider. Saving per Invoice 11.20 € = 64 % Based on calculated staff costs of 60€/hour (full costs including overhead, working place, etc.). Each invoice has an average size of 1.5 pages. Billentis report “The e-invoicing journey 2019 - 2025 Savings potential for invoice receivers (actual customer case) Receive Archiving Entering Codification Validation & Matching Dispute Management Payment & Cash management
- 13. Print, envelope and send Archiving Payment reminders Remittance & Cash Management 1.10 € 3.00 € 4.00 € 4.80 € 0 € 0 € 1.20 € 2.00 € Paper Electronic, Automated 11.10 € 4.50 € * * Including processing cost by 3rd party provider. Saving per Invoice 6.60 € = 59 % Based on calculated staff costs of 60€/hour (full costs including overhead, working place, etc.). Each invoice has an average size of 1.5 pages. Billentis report “The e-invoicing journey 2019 - 2025 Savings potential for invoice senders (actual customer case)
- 14. How we achieve the business case.
- 15. Purchasing Order management Logistics / Receiving Logistics / Shipping Payment / AR Payment / AP Create / Send PO Ordering from Suppliers Receive Shipping info Proof of Delivery Receiving goods Paying goods Receiving Order from Buyer Receive PO and create Sales Order PIM / Selling Create Catalogs Manage PIM data ERP / eProc / Requisition Send Order Response Process / Order RSP Process Invoice Create Payment Buyer Supplier Delivery of goods to buyer Process proof of Delivery Send Invoice Receive Payment Delivering goods to Buyers Receiving Payment Buying Select goods ORDERTOCASHPURCHASETOPAY ORDERTOCASHPURCHASETOPAY Catalog Order Ordrsp Desadv InvoiceRecadv From Purchase to Pay (P2P) and Order to Cash (O2C)
- 16. Get rid of paper Centralize Create a supplier policy Working Capital Ensure quality data Master Data eArchiving Focus areas for invoice automation The goal is to move from gradual evolution to innovative business process automation!
- 17. Analyze to prioritize • Invoice automation and e-invoicing projects can be very successful if the situation of trading partners is considered. • All companies are graded different and have their unique capability to participate. • What needs to be considered after segmentation on branches and volumes are their individual ambition and will to participate in combination with the competence and time.
- 18. Next steps for Invoice automation ACCOUNTS PAYABLE GAP ANALYSIS ERP INTEGRATION & WORKFLOW MULTI-CHANNEL E-INVOICING & BUSINESS NETWORK • What can we do and how? • Define operational visibility • Define which solution addresses deficiencies • Review issues of integration • Review exceptions and rules • Identify options for quick resolution • Enable support for 2-and 3- way matching • Mobile and cloud applications to support real-time access • Enable PEPPOL eDelivery • Receive semi-structured data in extractable PDF´s • Invoice Key in, OrderFlip • EDI integration when there´s a need for more message types than Catalog, Order, Invoice
- 19. Organizations can have a broader goal than just optimizing invoice processes. Automation and optimization of the invoice process usually represent only 1/3 of the total potential. Complete purchasing and payment process can be brought to the fore in the coming years. Companies that want to optimize the entire purchasing and payment cycle intend to replace paper processes with electronic processes. They can thus achieve significant savings. Gradual improvements achieved by replacing paper-based processes are positive, but it is possible to take a disruptive approach and thereby improve the entire financial supply chain by many factors. Experience shows that often + 30% of the sub-processes can be removed without losing anything substantial. Monolithic systems can be replaced by cloud services on a modular basis. The costs can be significantly reduced and the organizations that follow this strategy can become more flexible. Your checklist for automating business processes with disruptive innovation
- 20. Maximizing on-contract spend requires effective catalog management. With OpusCapita Online Product Catalog, all relevant products or services can be made available to your organization at agreed terms. AR-matching modules enables the set up matching processes and rules for matching process and enrichment of material with additional information to the matching process. All automatic matching is based on pre-defined rules Rules-based automation (invoice to order matching) and the use of machine learning, is maximizing automation rates within a controlled process. Workflows, easily managed with a visualizer that not only provides visibility into the whole process but gives you dynamic control Cloud-based solutions Monolithic systems replaced by cloud services
- 21. LESSONS LEARNED Matts Ek, Product Manager, OpusCapita
- 22. Digitalizing global trade One customer at a time What we do. How we do it.
- 24. Goals • To streamline the process • Invoices will pass verification, approval, and payment so quickly that the account has final information about all purchases by the end of each month • Exclude Excel in reporting cash flow and make it more automated and in real-time for follow-up and budgeting • Multi-channel invoice receipt and invoice management systems in place and enable smaller "niche providers" to enter into electronic collaboration • Reduction of the number of FTEs Globally needed to process invoices Challenges • Global dissemination of operations - different systems, different countries • Suppliers with varied opportunities for cooperation • Unclear / non-existent processes to manage collaboration (P2P) with suppliers • Legacy from past server-based environments and earlier attempted e- invoicing projects • Non visualized working methods and processes when it comes to handling order invoice payment Jungheinrich - Forklifts and storage systems
- 25. Jungheinrich Forklifts and storage systems Challenges vs solutions • Improve the process from order to delivery - and automate the supplier invoice process • Use rules to automate electronic purchase / vendor invoices to the corresponding purchase orders • Process electronic invoices in a single system, a workflow connected to SAP (ERP). Invoice Key-In and OrderFlip Cloud-based service for small suppliers to be part of an EDI collaboration (Order, Confirmation and Invoice). B2B Integration (EDI) Order, Order response and Invoice through the EDI service "point to point“ with medium and large suppliers Invoice Portal, PO-flip Cloud-based service for creating and sending electronic invoices to Jungheinrich to be combined with sending of orders to be flipped into invoices Receiving eInvoice - via other supplier network and PEPPOL for invoice now and in the next step Order, Order response. Digitization Scanning, Interpreting, Paper Billing Correction In combination with receiving email from PDF Invoice management system / workflow incl. payment - invoice automation, 2 3 4 road matching, analysis, reporting Supplier onboarding Cloud-based service to register and onboard suppliers to the various services incl. support SaaS
- 26. The Results • All purchase invoices are handled electronically in the OpusCapita Invoice workflow invoice management system • Invoice receiving via / as eInvoices, PDF by email, OrderFlip and Invoice Key-In • Invoices are automatically matched to the corresponding purchase order, after which the electronic invoices are forwarded for verification, approval, etc., to the SAP Business One System, and sent for payment • Clear visualized processes in cash flow such as reporting, analysis, order-to-invoice, a way to unify "onboarding" suppliers for cooperation Jungheinrich Forklifts and storage systems
- 27. Our next webinar is October 9th! Topic: Implementing Bank Connectivity with Valmet Thank You! 27
Notas del editor
- Founded 1984, approximately 400 employees, 65m€ in 2017
- The digital transformation is no longer an option – It´s the imperative. Growing number of disruptive “next-gen” technology enters the scene and pave the way to substitute legacy platforms and old solutions and processes by a new approach. In addition to a powerful market transition within the “invoicing-business” when PEPPOL is driven by authorities mandating the same. Resulting in B2B companies need to comply and add channels to their invoicing needs. In order to satisfy your customer´s and your suppliers needs you need to be on top of this “lift and shift” and create a multichannel invoice solution for your entire supply chain. Automation is no longer a buzz-word, it´s the reality. Emerging technologies - blockchain, cloud aggregation platforms, RPA, machine-learning and advanced analytics are the future tools to improve business process automation and resulting in cost-saving compared to the “old” solutions. We want our Customers to join us in this journey to the ever-expanding network full of possibilities for real-time data to reach trading partners in seconds supported by applications for monitoring and connectivity! But how?
- The global volume of eInvoices (B2B, B2G, B2C) is estimated around 36 billions out of a total of 400 billion (bill/invoice volume). Global growth of 10-20% annually. eInvoicing become increasingly a cornerstone and pushed by governments/EU directives making it mandatory from 2019 in Europe. Affecting +300 000 public administrations - and will indirect affect +22 million SME companies in Europe. Public sector in a position to mandate suppliers to send electronic invoices in a structured way. More than six million electronic invoices and other eProcurement documents are exchanged every month, using the PEPPOL network between over 400 000 companies. When considered “eInvoice” exchange via email is more popular than EDI/eInvoices – 70% share of ALL electronic invoices are PDF. E-mails are prefered by SME´s and often accepted by larger companies. Still only 6-7% of all invoices are based on a PO globally, in SE there was 11,4 e-Orders for every 100 invoices in 2015.
- Get rid of paper. In most organizations, conventional paper processing is not optimized. Instead of optimizing this function work with alternative methods (eInvoicing, portals, EDI) and set conventional paper processing as the very last resource to use. Centralize. Invoices are often received decentrally by many departments, even on a country level – Centralize, centralize to one receiving point and let the Data be shared later in the process Create a supplier policy – Ex. Data are validated and matched with related documents manually - this is time-consuming and costly – in order to decrease this use do a supplier segmentation and invite your suppliers into solutions more suitable for your (their) needs i.e. the exchange of Orders and Invoices or even Catalogs (eProcurement) Working Capital improvements - Cash managers do not have an overview of all invoices in the workflow and therefore only have limited opportunities to improve the working capital – by bringing visibility into the system by a digitizing journey you´ll have more power in managing the working capital and reduce the need of alternative actions. Ensure high data quality – Ex. Delayed payments are often caused as invoice errors are detected very late during the processing cycle. By changing how invoices are handled (i.e. from unstructured or semi-structured data to structured data) the potential of discounts are handled, and the DSO gets healthier for both sending and receiving of invoices Master Data - Automate master data update and leave the manual processes. Look for master data management resulting in lower trading partner administration costs. eArchive - For archiving paper invoices, a great deal of space is required. It is also costly to retrieve paper invoices in the event of audits or queries – meanwhile can the archiving of electronical documents require a heavy load on IT – Look into an eArchive solution incorporated into your solution. Considering, replacing monolithic systems by cloud services on a modular basis. (i.e. invoice management systems, payment systems, matching system and eProcurement systems)
- Review and define gaps in your Accounts Payable processes. Level of automation due to integration challenges (What can we do, when and how) Level of operational visibility into AP processes Select solution(s) including workflow that addresses process deficiencies (i.e. space between the invoice automation solution itself and the business systems of record (i.e., ERP). Take a close look at the level and quality of integration and its impact on your operations. Commit to a culture emphasizing improved supplier relationships - Define a structure and process how to handle existing and new suppliers, incorporate “purchase” and IT. Strengthen the integration towards your ERP and / or Implement a robust workflow Est. 8 out of 10 (or 82%) of all invoices will have at least one exception or typically 20-30% of all invoices have to be treated as exceptions in one form or another, resulting in very high processing costs. Go-through your exceptions and rules to enable a hazzle-free invoice workflow Identify exceptions and checks and enable them for quick resolution of exceptions with little to no manual intervention Look over invoice processing rules support Enable support for 2-and 3-way matching Supporting visibility for faster processing Enable capture of early payment discounts Mobile and cloud applications to support real-time access to invoices and related documents — on any device, any location – to speed up approvals As part of AP/AR transformation, organizations should look for the support of a multi landscape / channels solution enabling suppliers to self-service portals such as “invoice-key-in solution” or “OrderFlip solution” in parallel to eInvoicing solution and EDI. eInvoicing solution as a “package” of format dependent on your locality Enable yourselves as a receiver within the PEPPOL eDelivery for receiving of PEPPOL BIS3 Receive semi-structured data in extractable PDF´s by email in combination with OCR-recognition of images (TIFF) Invoice Key in, OrderFlip i.e. applications for small suppliers EDI integration when there´s a need for more message types than Catalog, Order, Invoice i.e. integration for you largest and most important suppliers Still supported, but maybe not “visible” for all – Invoice Scanning / Digitizing Invest in an onboarding tool for suppliers that automates invitations and campaigning to your preferred channels but also taking into consideration your suppliers' capability - This can provide a better customer experience for suppliers while simultaneously cutting the cost of supplier management. Ensure compliancy to legislation (in Europe, North America, Pacific etc.) by including this as a requirement from your supplier. Master data capability - The unique identification of trading partners based on compliant master data is a prerequisite for automated e-invoicing. True e-invoicing paves the way for real-time or near real-time data validation. The earlier an incorrect invoice is rejected, the sooner a new one can be sent. As a result of the improved invoice accuracy, the approval and processing time can be reduced significantly. The DSO can in most cases be shortened by several days . Dispute handling can be conducted in a more structured way by using the same electronic communication channel. As a result the trading partner administration costs can be reduced substantially