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Articles in category: Invoicing & Payment
Benchmarking from the Aberdeen Group’s 2010 “Effective e-Procurement” found that on average, 16% of all transactions that start in the e-Procurement system actually get completed outside the system. This implies that even though the users intended to use the e-procurement system, they eventually opted out and continued with their transaction elsewhere. This brings us to the question, why do majority of the Procure to Pay initiatives fail when it comes to the metric of user adoption rate?
Everyone knows that times are tough and times are toughest for small businesses. They’re faced with obstacles that can seem insurmountable – paperwork, regulation working capital costs. But there’s one obstacle above all others that can strike fear into the every small business – the late payer. They are a scourge. Over years, an obsession with the optimisation of DPO (that’s accountant-speak for funding your business at the expense of your smaller, weaker suppliers) has become a central financial strategy for many large organisations.(Read Full Article)
It is a fact that instances of payment fraud in business are on the rise. And alarmingly, many businesses are clueless that some employees and suppliers may be 'helping themselves.' In this article, we will examine purchase invoice fraud and see how receiving invoices from suppliers electronically can actually prevent it. We will start off with the various sub-types of purchase invoice fraud that companies may be inadvertently overlooking, and then show how electronic invoicing can address this problem.
There used to be a stigma associated with making purchases using credit. This invariably affected attitudes towards using a purchasing card or P-card as payment method within organizations as well. Some companies placed so many controls and stringent approval requirements around the usage of P-cards that employees avoided this payment method altogether. Other companies were lax in their P-card policies and ended up in situations where employees placed inappropriately large purchases on their cards.
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Everyone agrees it seems. The case for implementing inbound e-invoicing is compelling. It is a simple matter of common sense. Replacing an inefficient paper process with an automated electronic process will generate savings and in the current economic environment, who would argue that it was not a good idea? It isn’t even that technically complex. What could possible go wrong? Well for a start – getting buy-in from the business.(Read Full Article)
British newspaper, The Daily Telegraph, uncovered that GSK has begun extending its payment terms from 60 days at the end of last year to 90 days, a move which Phil Orford, chief executive of the Forum of Private Business said shows ’scant regard’ for small suppliers. One GSK supplier who spoke to The Daily Telegraph anonymously said: "This kind of borrowing from suppliers – whatever their size – is scandalous."(Read Full Article)
Sandvik, a global Swedish mining and construction engineering company, has simplified its supply chain with a single purchase order portal. This has created information not previously available to make decisions about supplier relations, such as renegotiating contracts. Dubbed SupplierConnect internally, the system, from Finland-based data integration supplier Liaison Technologies, has saved Sandvik “a lot of time and money” according to programme manager Lars Holmström.(Read Full Article)
Government departments are to be closely monitored to ensure they pay suppliers within 30 days, says Minister in the Presidency for Performance Monitoring and Evaluation Collins Chabane. Failure to abide by this requirement of the Public Finance Management Act has previously caused severe liquidity problems for small businesses, with some having to shed jobs and close down.
Civil engineering company Sanyati went into liquidation earlier this year after a business rescue plan was terminated. It blamed its financial woes on the Free State government’s prolonged nonpayment for work it had done for the province.(Read Full Article)
Minister in the Presidency Collins Chabane says Treasury will ensure national and provincial departments pay service providers within 30 days. A dedicated system will be set up in the Treasury to ensure national and provincial departments pay service providers to the state within 30 days, Minister of Performance Monitoring and Evaluation in the Presidency Collins Chabane said at a post-Cabinet media briefing on Thursday. Failure by government departments to adhere to this rule has created severe liquidity problems for business, especially small enterprises.(Read Full Article)
How often does Procurement talk to Accounts Payable? At some world-class companies, the two have a close relationship. When Heidi Landry-Chan assumed her post as Vice President and CPO at Dow Corning to transform the procurement operation there she understood the value of the two functions working together. For Landry-Chan, it simply makes sense for AP to report to Procurement since Procurement is responsible for the procure-to-pay process.(Read Full Article)
I wrote recently about the importance of paying suppliers on time, or, at least not burdening suppliers by extending days payable to dangerous lengths. Understanding the payment schedule better, however, means taking a closer look at the buyer-supplier relationship. To find out more about how leading procurement executives view the issue, I contacted Scott Forbes, who heads procurement for EP Energy.(Read Full Article)
Electronic invoicing software provider, Version One, is urging UK public sector bodies to ditch paper invoices in favour of e-invoicing by 2016 to help comply with European Commission proposals.(Read Full Article)
There are two significant business solutions that are gaining traction globally: AP automation solutions such as e-invoicing and supply chain finance and businesses that overlook these opportunities could pay a very high price. For years there has been more hype than reality about e-invoicing but the reality has now taken hold.(Read Full Article)
At a recent conference, e-Invoicing Europe 2012, Gabrielle Philippens, Senior Process Consultant at DHL, discussed the critical success factors for DHLs journey to implementing electronic invoicing.(Read Full Article)
The late payment of invoices can have a crippling effect on small businesses, particularly at a time when the economy is in recession and consumers are reining in their spending(Read Full Article)
Many suppliers will offer a discount for early payment. The decision to accept the discount is normally based on two factors. Are you in a position to pay the invoice early? (i.e. are your purchase to pay processes efficient enough to do so) and secondly, the size of the discount. What is not normally considered is arguably the most important factor of all – the mitigation of risk.(Read Full Article)
After-the-Fact Purchase Orders are often required to close out purchases that have occurred outside the organization's established policies and/or procedures. These purchases are often referred to as rogue spend, maverick spend, or unplanned purchases. This 'SnapShots' benchmarking report provides information on the percent of purchase orders created after goods or services were received; the percent of total spend attributable to rogue/maverick spend; and whether or not the numbers of after-the-fact purchase orders are increasing or decreasing.(Read Full Article)
David and Goliath: Taulia's VP of Products Markus Ament Takes on the Big Guys - Independent Reviews, Comparisons, and More
San Francisco-based Taulia enables buying organizations to pay their invoices earlier in return for additional discounts. Their Dynamic Discounting platform creates a win-win situation, because buyers receive discounts while suppliers get their money faster. VP of Products and Solutions, Markus Ament, joined us for a discussion on the credit crunch, the big players in this market, and the future of supplier networks.(Read Full Article)
One of the most common mistakes made in approaching electronic invoicing in Latin America is thinking that the process is similar to the European Union. In the following commentary, I'll focus on the top five e-invoicing differences between EU countries and Latin American countries: specifically Brazil, Mexico and Argentina.(Read Full Article)
In order for purchase to pay (P2P) to run smoothly, buyers and accounts payable (AP) departments must have a good relationship and communicate well with each other. This can pose a challenge, however, as historically the two departments do not communicate, leading to misunderstandings on their appropriate duties.(Read Full Article)
There a a few eye-catching headlines that sell the benefits of dynamic discounting. “36% return on capital” for example is pretty eye catching but how does dynamic discounting really work in practice and how do you work out if it is beneficial to take say a 2% discount for payment in 10 days rather than 45? Being familiar with the value of payment terms and how to calculate it is an important s...(Read Full Article)
The government's non-compliance in paying suppliers within 30 days has reached alarming levels, President Jacob Zuma said on Tuesday."A key contribution to the development of small business by government would be improving government's ability to pay suppliers on time, within the prescribed 30-day period," Zuma said.(Read Full Article)