Understanding suppliers, their challenges and how they will benefit
There are several reasons why your suppliers may have not transitioned to electronic invoicing (e-invoicing). From a lack of resources, to a lack of budget, to even a lack of understanding what e-invoicing is all about.
This is where your role becomes even more important. If you are already processing and distributing e-invoices you can let your suppliers know what e-invoicing entails and how it all works. Once you have explained the basics, let your suppliers know the benefits and how electronic, digitalised invoices will improve their invoicing processes.
Three key benefits for suppliers
- Increased accuracy and efficiency – Using an e-invoicing service means less human error which can often result in delayed payment. Time is freed up for the accounts team to focus on more strategic tasks, rather than invoice creation, as they are generated and sent automatically. Created in a digital format, e-invoicing platforms make processes more efficient and can provide suppliers with full visibility of an invoice’s status.
- Decreased costs - Suppliers can save money by eliminating the use of paper, ink, printing machines and postal costs. This can lead to direct cost savings and also a reduced environmental impact.
- Faster payments - Quicker and more accurate invoice distribution results in shorter payment periods and an overall improved cash flow.
When it comes to the recent adoption of e-invoicing, a US PYMNTS study found that 64% of companies are moving away from physical invoices. And a report by Market Data Forecast predicted the global e-invoicing market to grow at a CAGR (compound annual growth rate) of 16.2% between 2022 and 2027. By 2027, it is expected to be valued at USD 15.5 billion.
How to approach the topic with your suppliers
Businesses who do not adopt e-invoicing technology run the risk of falling out of favour with modern organisations, as well as falling behind the digitalisation curve.
However, it’s important to not force your suppliers to transition through the use of scare tactics, or as a prerequisite of doing business. Instead, suppliers must understand the true e-invoicing benefits themselves.
Firstly, open the conversation about future-proofing their business and making operations more efficient. Suppliers may then start to think about future implications. The main benefits of e-invoicing can be discussed as well as how electronic invoicing works.
From there, the ease of implementation should be covered and any concerns regarding costs or technical requirements addressed. Solutions such as Unifiedpost Group’s Banqup can demonstrate how easy getting started with e-invoicing can be, even for the smallest of businesses.
Collaboration and next steps
Embracing e-invoicing together with suppliers increases collaboration. Communicating the many benefits and supporting suppliers in the early stages of their journey is important.
Leading global e-invoicing providers assist with supplier onboarding, which can help relieve any stress and provide reassurance that support is available. Discover what else you should consider when choosing an e-invoicing provider.
Furthermore, businesses can create incentives for suppliers to adopt e-invoicing. Offering a discount is one way to do this, which helps to lessen the initial investment cost and help build goodwill with suppliers. Highlighting benefits is another - from improved cashflow to reduced paper wastage - this will also reassure suppliers that they’re making a forward-thinking decision.
How Unifiedpost Group can help
Unifiedpost Group’s Collect is an all-in-one solution equipped for digitalising all incoming documents. It features the value-added ‘Supplier Invitation’ service - a useful tool to get your suppliers on board.
Collect’s Supplier Invitation service allows you to invite your suppliers and transition them from manual processes to a fully automated, digitalised workflow. Companies will benefit from easier document, data exchange and approval tasks, and Collect’s all-in-one design means it can cover 100% of your suppliers.
For larger businesses, the tailored onboarding service can be utilised. Once information is supplied, Collect will handle all the mapping required on your behalf.
Get in touch to understand more about Collect and how we can help you convince your suppliers to transition to electronic invoicing.