There have been a number of key changes in the B2B eCommerce Software Markets over the last 5 years and eInvoicing is one of the new and fastest growing spaces. Ariba's Financial Solutions including Invoice Management, Payment Management and Working Capital Manager are leading the way toward removing paper from the day today financial process. Accounts Receivable initiates almost all paper invoices today and many of these organizations are looking for ways to convert completely to paperless invoice processing. Platforms like the Ariba Network are proven to provide small, medium and large suppliers the ability to move quickly off of paper invoice processing.
There are a number of key factors driving this rapid change in the eInvoice market.
1. Buyer Demand - Many of our suppliers have been asked by their customers to adopt an eInvoice policy when sending request for payment
2. Market Deman - The competitive nature of the current global market is causing suppliers to adopt eInvoice to better compete and to stand out in an RFP or sourcing exercise. Saying you are Ariba Ready for eInvoicing is the best way to stand out.
3. Cost Savings - Suppliers are finding their cost per invoice is droping by greater than 50%
4. Acceleration of Cash - Cash is king and not only are Suppliers being paid faster but they are gaining new ways to accelerate collection of cash directly tied to the value of eInvoicing. With Ariba they can also leverage discount management and receivables auctioning with The Receivables Exchange, to open up additional sources of capital.
It is becoming clear that the sellers desire to meet the needs of their customers and many of the other above value drivers is creating a fast growing set of solution providers. All you need to do is go to google and type in search for eInvoice and you get eleven companies paying for placement. Many of which noone has heard of in the past. Ask the analysts what they think of eInvoicing and they quickly get into the challenges for suppliers to navigate the large number of offerings and the needs of their customers.
It's important when looking at an eInvoice solution as a large buying organization to think about the fact that your seller is probably more motivated to move to eInvoicing than you are and that your solution platform and approach you pick for removing paper processing should take into consideration not only the value drivers for the suppliers but the operational needs of the suppliers. One good example of how Ariba provides value to the seller is our PO-FLIP trademarked feature which makes it fast for a seller to generate an accurate invoice and to track invoices to the originating purchase order.
It's really important as you choose how you respond to your Sellers request for eInvoice that you consider how your Procurement organization and Operational groups want to work with the Sellers. Many decentralized Procurement groups own the relationships with the Sellers and can help you navigate the increasing requests that Sellers are making to move to paperless processing.
Who are the players in the eInvoice Space? Here is a sampling.
- and others in EDI solution space that just allow sending of a document but with no other compelling features
Invoice Only Providers:
- OB10, allows suppliers to send invoices, www.ob10.com, http://www.google.com/search?hl=en&q=OB10&aq=f&aqi=g10c1&aql=&oq=&gs_rfai=
- Basware, buyer side tools set that can take eInvoices from other networks, www.basware.com, http://www.google.com/search?hl=en&q=Basware&aq=f&aqi=&aql=&oq=&gs_rfai=
- Transcepta, great group of guys who allow sellers to more easily create invoices, www.transcepta.com, http://www.google.com/search?hl=en&q=Transcepta&aq=f&aqi=g10&aql=&oq=&gs_rfai=
- JPMC Xign, an early provider of electronic invoice with much more focus now on Pcard opportunities. www.xign.net , http://www.google.com/search?hl=en&q=Xign&aq=f&aqi=&aql=&oq=&gs_rfai=
- Bottomline, focused on payment but some basic invoice, www.bottomline.com, http://www.google.com/search?hl=en&source=hp&q=Bottomline&aq=f&aqi=g10&aql=&oq=&gs_rfai=C0yt_gu2cTNmZD4W8NqL3wOYIAAAAqgQFT9DSYhw
- QuickBooksOnline, small supplier capabilities, www.quickbooksonline.com, http://www.google.com/search?hl=en&source=hp&q=Quickbooks+Online&aq=f&aqi=n1g10a1&aql=&oq=&gs_rfai=CO4atRu6cTPi-F4yYoASi0d3_CgAAAKoEBU_QNZVf
I encourage you to talk to your suppliers to discuss what platforms they use, where they get value and what their needs are. It is becoming very clear that Sellers are driving the adoption of eInvoice globally. China, India, Japan and other Eastern Regions are also quickly moving away from paper.