Today’s global manufacturers work with suppliers located around the world, many of which have their own distinct regulations for electronic invoicing (e‑Invoicing)—from archiving to digital signatures to value added tax (VAT).
The transition to e-Invoicing has accelerated the trading process and improved the quality of invoices—while saving time and effort—but it has also added complexity for global manufacturers. In fact, more than 50 governments today have some form of e-Invoicing mandate to tackle tax fraud and increase revenue—and we expect many more to follow in the coming years. The expectation is that by 2030, the vast majority of the 200 VAT regimes in the world will have some kind of mandatory continuous transaction controls in place around invoice processing.
Amidst the increasing complexities of global trading, manufacturers are looking to pay supplier invoices as quickly as possible while navigating the variances in requirements.
The changing e-Invoicing landscape
Manufacturers today are under increasing pressure to adopt e-Invoicing, and the pandemic has played a key role in accelerating usage. As the world continues to emerge from the pandemic, industrial output and demand have begun to rapidly increase, placing more pressure on over-worked accounts payable departments. This has left many manufacturers struggling to process invoices effectively to support growing order books.
In fact, Tradeshift’s Index of Global Trade Health Q1 2021 report found that while order volumes had surged by 35 percent from January to March 2021, the total volume of invoices processed rose just two percent. This not only leads to delayed payments, but the inability to keep up with demand is damaging both supplier and customer relationships.
The benefits of e-Invoicing
While the cost savings and process efficiency benefits are clear, the complexity of legacy systems, multiple channels and country-specific legal requirements often overshadow the benefits of e-Invoicing.
Although it may take some time to achieve full invoice automation, the transition to e-Invoicing can help organizations address supply-chain imbalances and free up internal resources to focus on core business needs. And early wins in e-Invoicing can help fund continued efforts as strategies develop.
As manufacturers move towards digitizing their paper and email invoicing processes, they can also expect to realize the following benefits:
- Invoice accuracy
- Time savings
- Faster payments
- Better visibility and compliance
- Improved customer and supplier relations
A global e-Invoicing solution
Building an effective e-Invoicing strategy is critical to realizing these benefits and more. But implementing an effective e-Invoicing strategy requires a solution that integrates with existing systems, focuses on trading partner enablement, and manages and ensures regulatory compliance.
A global e‑Invoicing solution can help simplify the complexity of e-Invoicing, enabling manufacturers to meet global mandates and compliance regulations. It can also automate the e-Invoicing process, removing compliance and management complexity and leaving the benefits.
Webinar: Compliant e‑Invoicing with Forrester Research
If you’re finding it hard to keep up with rapidly evolving e-Invoicing regulations, you’re not alone. A recent survey revealed that 64% of companies still process invoices manually1.
Watch this on-demand webinar to learn how to easily keep up and improve cash flow across the supply chain. Our guest speaker, Meng Liu, senior analyst with Forrester Research, offers his insights on the market and discusses:
- The top B2B payment priorities among manufacturers
- Why seamless integration and payment automation are e‑Invoicing imperatives
- What to look for when evaluating e-Invoicing providers
- What technologies manufacturers are adopting to make e‑Invoicing easier and compliant
Watch the on-demand webinar featuring Forrester.