SHARE   |  

Electronic Invoicing: What’s in It for the Supplier?

As companies are jumping on the electronic invoicing bandwagon and rolling out automation solutions, einvoicea number of them tend to forget a key stakeholder – the supplier. While it is clear to most buying organizations that electronic invoicing helps deliver lower costs and increased processing efficiencies, none of these benefits will actually be realized unless the suppliers adopt the eInvoicing solution of choice.

This begs the question – what’s in it for the supplier? Why should suppliers change their processes and migrate from mailing paper invoices to electronic submission methods just because their customers are asking them to do so?

The answer is simple: Because eInvoicing may be just as beneficial for the supplier as it is for the buyer. Let’s take a look at how eInvoicing may impact suppliers:

  • Lower Costs: Sending invoices electronically may help lower processing costs for the supplier due to a reduction in labor costs and the elimination of virtually all mailing and postage charges. Further, suppliers may be able to free up their accounts receivable (AR) staff to focus on more value added activities like collections and customer service.
  • Faster Processing: Validation of invoice information at the time of submission and electronic routing and approval of invoices, combined with collaborative dispute resolution tools and electronic payments, means that invoices may be approved and paid faster.
  • Decrease in DSO: A key metric tracked by most companies on the AR side is Days Sales Outstanding (DSO). Electronic invoicing helps to enable suppliers to reduce DSO by helping to eliminate the time wasted when the invoice is in the mail, as well as helping to accelerate the invoice review, approval and dispute resolution process.
  • Increased visibility: The online portals available as part of many electronic invoicing solutions can deliver real-time visibility into invoice and payment status for suppliers. This means that the likelihood of needing to call the accounts payable help desk on the buyer side to inquire into whether the invoice was received and when it will be paid may be reduced.
  • Better Cashflow Forecasting: When buyers automate invoice and payment processes, this may lead to reduced uncertainty around payments on the supplier side. Consistency around the payment timing can help result in better cashflow forecasting ability for suppliers.

Electronic invoicing: helping to create a win-win situation all around, for both buyers and suppliers.

To learn more about ADP’s electronic invoicing and supplier enablement capabilities, click here.



1-855-864-1712

Sign Up for
Email Updates

featured webinar