getting suppliers onboard with e-invoicing stephen carter, head of einvoicing uki

GETTING SUPPLIERS ONBOARD WITH E-INVOICING

Stephen Carter, Head of eInvoicing UKi

FIVE HOT TOPICS

1. Are suppliers are ready for e-invoicing?2. Why should e-invoicing be part of a digital transformation strategy3. Targeting and understanding your suppliers4. Strategies for successful e-invoice adoption5. How to message to suppliers

SETTING THE SCENEReal person sat on train near me talking to a friend....

”this [customer] is a real [pain], I’ve posted them an invoice but it would be [damed] sight better if I could do it on my [smartphone]. I have to send them the same invoice a few times before I get paid LATE”

MY SUPPLIERS ARE SME’SSO I CAN’T DO E-INVOICING!

MY SUPPLIERS ARE SME’SSO I CAN’T DO E-INVOICING!

Ever thought that they may be waiting for you to ask them for an e-invoice – it

would make their lives easier!

WHAT IS E-INVOICING?

What is it?• Working Smart or ‘digitally’• ‘Smart’ communications• Strategy solution for trading

What isn’t it?• Just invoicing but ordering• Just PDF• Just a tactical fix

WHAT ARE THE REAL BARRIERS?

Physical thinking

• iPOD (Walkman) for music• DVD player for watching films• Phone for calls (and texts!)• Laptop for emails and internet• Tablet for Facebook and Internet• Newspaper for the news

Why? Because it’s how we’ve always done it!

Digital thinking

• Smartphone

Why not? Ummmmm. Because I already have a phone…

WHAT ARE THE REAL BARRIERS?

Physical thinking

• Buyer send PO with lots of line items• Supplier consolidates line items to send one invoice• Buyer processes each line item manually• Buyer allocates costs codes per line item• Buyer consolidates and issues payments • Supplier reconciles payments across accounts • Supplier & Buyer completes VAT information

10-15 days in lapsed time, total cost > £20?

Why? Because it saves paper and that’s how we’ve always done it!

Digital thinking

• Buyer send e-Order per ‘line’ item• Supplier e-invoices per ‘line’ item

• Automatic match of PO to Invoice• Automatic pay on approved invoice• Automatic reconciliation of payment• Even automatic VAT collection

In real-time with a total cost < £1

Why not? Because our process is based around paper and our suppliers will not move!

WHAT’S YOUR VIEW OF A SUPPLIER?

TARGETING SUPPLIERS

Technical Maturity Supplier Size Transactional Volume

The ‘Chasm’

ON-BOARDING STRATEGY

Innovators EarlyAdopters

LateAdopters

LateMajority

Laggards

Mainstream

ON-BOARDING STRATEGY

Innovators EarlyAdopters

LateAdopters

LateMajority

Laggards

THECHASM

Mainstream

ON-BOARDING STRATEGY

THECHASM

Size is not Important – honest!

In for the long hall

Agility and successDrives changes

MESSAGING STRATEGY

Early Payment& more Sales

LateMajority

THECHASM

Innovation & Personal Advantage

Mandates &Timeline

No choice

Set InternalExpectations

Announceearly success

Never waist timeon laggards

Never force an early adopter!

Target & LearnOffer choice & Avoid Laggards Just move on!

E-INVOICING - A SUPPLIERS THOUGHTS?

How can I do this without ICT input?

If I do this now, will it cut out my competitors and make me more

money?

Can I now get paid quicker?

Can I use this to sell more ‘stuff’?

Great, this will cut my credit control

effort and my cost of sale. Your Supplier

THE E-INVOICING MENU

Technical Maturity Supplier Size Transactional Volume

PDF e-Invoicevia E-mail

CloudScan orOutsourced

Suppliers

Open Network

PORTALBack OfficeIntegration

INV POPOINVPO PO INV INV INV

€$£

THE WORLD IS CHANGING

THE WORLD IS CHANGING

Next generation technology Digital agenda 2020New working methods

It’s no longer ‘when’ or ‘if’, it’s ‘are you ready?’

UNDERSTANDING THE OPPORTUNITYThat person sat on train near me talking to a friend....

”this [customer] makes it so easy for me, I create an invoice instantly on my phone and they pay within days. Its so good I’ve cut my prices and focus on them as a key customer – real partnership!”

FIVE TAKEAWAYS

1. The suppliers are ready for e-invoicing2. E-invoicing is part of a digital thinking strategy3. Never focus on the ‘laggards’ - always focus on interested suppliers 4. Set internal expectations for early success around interested suppliers5. Evolve your message around the supplier not your business!

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THANK YOU