e-invoicing report how ready is this market sponsored by basware july 2009

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How How How How Ready is this Market?Ready is this Market?Ready is this Market?Ready is this Market?Sponsored Sponsored Sponsored Sponsored bybybybySponsored Sponsored Sponsored Sponsored bybybyby

July 2009July 2009July 2009July 2009

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What is your main ERP for F&A?What is your main ERP for F&A?What is your main ERP for F&A?What is your main ERP for F&A?

83%

5%6%

6%

SAP JD Edwards Agresso Other


How many 3rd Party invoices do you process How many 3rd Party invoices do you process How many 3rd Party invoices do you process How many 3rd Party invoices do you process in Europe?in Europe?in Europe?in Europe?

4

5

6

7

8

0

1

2

3

4

Less than 200,000 200,000 - 499,999 500,000 - 999,999 Over 1 Million


What % of invoices are paper today What % of invoices are paper today What % of invoices are paper today What % of invoices are paper today (scanned/keyed/OCR'd)?(scanned/keyed/OCR'd)?(scanned/keyed/OCR'd)?(scanned/keyed/OCR'd)?

5

6

7

8

47% of respondents are still processing 90% or more txns as paper

0

1

2

3

4

100% 90% - 99% 80% - 89% 70% - 79%


What % of invoices are currently EDI (one to What % of invoices are currently EDI (one to What % of invoices are currently EDI (one to What % of invoices are currently EDI (one to one)?one)?one)?one)?

4

5

6

7

8

0

1

2

3

Less than 5% 6% - 10% 11% - 20% 21% - 30% Over 30%


What % of invoices currently arrive via a What % of invoices currently arrive via a What % of invoices currently arrive via a What % of invoices currently arrive via a network or a hub?network or a hub?network or a hub?network or a hub?

0%

10% - 19%

19%

20% - 39%

13%

56% of respondents are not processing via

a hub

0%

56%

1% - 9%

12%


What % of invoices are other (ERS, P Card What % of invoices are other (ERS, P Card What % of invoices are other (ERS, P Card What % of invoices are other (ERS, P Card etc)?etc)?etc)?etc)?

5

6

7

8

9

10

0

1

2

3

4

0% 1% - 5% 6% - 10% 11% - 15% Over 15%


What is the cost per manual PO invoice?What is the cost per manual PO invoice?What is the cost per manual PO invoice?What is the cost per manual PO invoice?

2

2.5

3

3.5

4

4.5

0

0.5

1

1.5

€1 or less €1.01 - €3.00 €3.01 - €5.00 €5.01 - £10.00 €10.01 - 20.00


What is the cost per electronic PO invoice?What is the cost per electronic PO invoice?What is the cost per electronic PO invoice?What is the cost per electronic PO invoice?

2.5

3

3.5

4

4.5

0

0.5

1

1.5

2

€0.5 - €1.00 €1.01 - €3.00 €3.01 - €5.00 €5.01 - £10.00


What number of suppliers send you 80% of What number of suppliers send you 80% of What number of suppliers send you 80% of What number of suppliers send you 80% of your volume per annum?your volume per annum?your volume per annum?your volume per annum?

200 - 500

40%

1001 - 4000

27%

4001 - 6000

13%

500 - 1000

20%


What is that number as a % of your total What is that number as a % of your total What is that number as a % of your total What is that number as a % of your total supplier database?supplier database?supplier database?supplier database?

1% - 5%

19%16% - 20%

31%

50% of respondents receive 80% of

invoices from 10% or less of suppliers

6% - 10%

31%11% - 15%

19%


How many countries do 80% of your invoices How many countries do 80% of your invoices How many countries do 80% of your invoices How many countries do 80% of your invoices come from?come from?come from?come from?

5

6

7

8

9

10

65% of respondents receive 80% of

invoices from 1 – 4 countries

0

1

2

3

4

5

1 2 to 4 5 to 7 8 to 12


Denmark

Norway

Slovakia

India

Canada

Austria

Finland

Which countries do 80% of invoices come Which countries do 80% of invoices come Which countries do 80% of invoices come Which countries do 80% of invoices come from?from?from?from?

0 2 4 6 8 10 12 14

UK

Germany

Italy

France

Switzerland

Spain

Belgium

Sweden

North America

Poland

Netherlands


When do you look to be live with your e When do you look to be live with your e When do you look to be live with your e When do you look to be live with your e invoicing project?invoicing project?invoicing project?invoicing project?

Been live for over a year

Went live in the last 12 months

Looking to go live in the next 12 months

Looking to go live between July 2010 and December 2011

Unsure

28%

22%11%

11%

28%


What are the 2 main drivers for e invoicing?What are the 2 main drivers for e invoicing?What are the 2 main drivers for e invoicing?What are the 2 main drivers for e invoicing?

Better contol of data/information

Take EPDs

Improve cash managent

Increase productivity

0 2 4 6 8 10 12 14

Cost reduction

Improved quality of process/reduce time

Drive out touchpoints and process inefficiencies

Optimise SAP


What are the 2 main reasons you have What are the 2 main reasons you have What are the 2 main reasons you have What are the 2 main reasons you have waited to implement?waited to implement?waited to implement?waited to implement?

System upgrades

Costs to make it happen

Process required improving first

Busy acquiring companies

Industry not ready

0 1 2 3 4 5 6

No resource/other projects on go

Legal and VAT requirements has caused delay

Market not ready

System upgrades


How would you describe the relationship How would you describe the relationship How would you describe the relationship How would you describe the relationship between Finance and Procurement?between Finance and Procurement?between Finance and Procurement?between Finance and Procurement?• Working very separate

• Supplier Management fully owns & drives the fully integrated PTP process, finance supports on the AP side

• From my experience there is a good level of understanding between the two in our organisation

• Close alliance for an E-invoicing projects seen as vital

• Finance to take lead - control communication and SP Supplier enrolment but is vital that backing for E-invoicing as main or mandatory form of invoice receipt is provided and floated down to all levels of procurement org.

• Main communication through Workflow • Main communication through Workflow

• Work closely together

• Close but developing - Procurement (in its current form) is a new team

• Good, thanks to a P2P process owner selected by both departments

• The two units are part of different divisions. Consequently there is an intense exchange, however, finance topics are usually regarded with lower priority.

• OK but Finance is the main beneficiary in such project not really Sourcing

• Not really structured

• Has been a problem but will improve once e Proc starts will be seamless

• Better than it has been but there is still room for improvement

• Now working much better


What % of today's costs (per invoice) do you What % of today's costs (per invoice) do you What % of today's costs (per invoice) do you What % of today's costs (per invoice) do you believe will be saved as a result of e believe will be saved as a result of e believe will be saved as a result of e believe will be saved as a result of e invoicing?invoicing?invoicing?invoicing?

3

4

5

6

45% of respondents believe e invoicing will cut their invoice costs by over 60%

0

1

2

3

Over 80% 60% - 79% 40% - 59% 20% - 39% Under 20%


ConclusionsConclusionsConclusionsConclusions

• The requirement for e-invoicing is clearly recognised to reduce costs, streamline the P2P process, increase supplier/buyer collaboration and improve ROI on current data systems. However, nearly half of respondents are still processing 90% or more transactions as paper. The opportunity for savings is still large in most organisations. E-invoicing has been proven to reduce processing costs by up to 80 per cent compared to hard-copy invoices

• 50% of respondents receive 80% of invoices from 10% or less of their supplier base – this presents the perfect opportunity to adopt e-invoicing. By focusing on the – this presents the perfect opportunity to adopt e-invoicing. By focusing on the conversion of these volume suppliers, savings can be made quickly and relationships with key suppliers strengthened

• Most organisations indicated that 80% of their invoices were received from multiple countries. The need for vendors to have strong network presence across Europe, and globally, is key to supplier adoption

• The number of respondents planning an e-invoicing project is in line with current market predictions. The Market growth rate in Europe is estimated to be 35% in 2009* * Bruno Koch, Billentis, EIPP European Market Overview 2009


About About About About BaswareBaswareBaswareBasware –––– the Report Sponsorthe Report Sponsorthe Report Sponsorthe Report Sponsor

• Basware is the global leader in purchase-to-pay solutions with more than 1,500 customers and 850,000 users in over 50 countries around the world. With Basware, organisations can reduce the cost of buying and paying for goods and services and gain visibility and control of their entire spending process by automating manual processes, from sourcing, contract management, purchasing and supplier collaboration to invoice automation.

• Basware solutions and services enable substantial cost reductions across businesses and deliver value by providing compliance and control, as well as fast return on investment.investment.

• Basware Business Transactions is a monitored service that ensures that electronic invoices are delivered to multiple suppliers and customers through one connection quickly and safely. Through inter-operator agreements customers of Basware are able to reach tens of thousands of business partners globally with one connection. This extensive inter-operator network is growing constantly.

• Basware Business Transactions transferred over 9 million invoices in 2008.

• For more information visit: www.basware.com

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