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Supplier Management Supply Base Strategies, Performance Measurement, Supplier Relationship Management, Supplier Integration, Supplier Development

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  #1  
Old 11-22-2006, 05:42 PM
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Frank at IMPAQ is on a distinguished road
Lightbulb Electronic Invoicing

I am center stage in the big debate on how you get your suppliers to engage with you for electronic invoicing.

Some of the recommendations I make include:

No cost to the supplier - overcomes the objection about cost

If you don't want paper from your supplier then STOP sending paper to your supplier - give your supplier the same opportunities that you want from the presentation of an electronic document

What's in it for your supplier? Will you pay them on time? - think through the benefit to your suppliers

I think there is a big gap in the education of customers that expect their suppliers to get with electronic invoicing but don't think through what that means to the supplier.

Please let me know what your experiences reveal. Thanks
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  #2  
Old 11-23-2006, 09:03 AM
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Default Re: Electronic Invoicing

Good Day Frank

I must say that i have never really encountered any resistance by suppliers (big and small) to the adoption of electronic invoicing/ bill presentment and payment. In fact i have seen suppliers really welcome this as there are clear and simple benefits for them and have seen this to be the case in both private and public sector situations. In fact i am sitting with a case study from Microsoft in front of me at the moment, which is just one example - if you want i can provide it to you?

The only stumbling block that may exist is a lack of connectivity to the internet. However, this is becoming less on an issue as connectivity becomes more wide spread and it must be said that solution providers have found ways around this, which work very well. The only other resistance that i have seen (off the top of my head) is when there is a lack of communication concerning such an initiative. When this happens suppliers feel left in the dark and their alienation results in resistance.

Please shout if i can be of any further assistance to you on the matter.

Kind Regards

Gregg Barrett
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  #3  
Old 11-23-2006, 11:18 AM
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Default Re: Electronic Invoicing

Hi Gregg, wasn't sure if I would get any interest in this thread and thanks for your comments. I see your post is from South Africa and I am reporting from the UK. We have Broadband access everywhere now from £12 p.mth for consumers/small business so our issues are not about connectivity. II'm scratching my head a bit but sense this is coming doen the pipe.
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  #4  
Old 12-19-2006, 01:41 PM
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Default Re: Electronic Invoicing

hello,

This is officially my 1st post!

We have introduced electronic invoicing to our suppliers but were not as fortunate as Gregg. Even though suppliers know they would get paid on time they don't want to use the tool.

They seem to be comfortable with paper based transactions... maybe its just the fear of trying out something new im not sure...

We will however make it compulsory for our suppliers to make use of electronic invoicing as of the New Year. The benefits with Electronic Invoicing are great for both Suppliers and Customers. Hopefully suppliers will realize this as time goes by....
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Old 12-19-2006, 03:30 PM
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Default Re: Electronic Invoicing

Hi Ziyaad, if you are in a position to compel your suppliers and make it a 'condition of business' then you will truly test your supplier's commitment. I see lots of examples of suppliers putting off a decision to commence electronic invoicing and sometimes you have to push hard just as you are doing. I presume you have a Plan B for those that keep with the paper invoices? I have seen some levy a processing charge as a deduction from the invoice value to cover their 'additional costs' incurred as a result of a supplier submitting paper invoices. Of course you will have to be reasonable in determining what your additional costs actually are. In all reality it is better to make it a condition of business and accept that you will lose some suppliers. Frank
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  #6  
Old 12-19-2006, 03:58 PM
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Default Re: Electronic Invoicing

We have given suppliers over a year to convert to the new electronic invoicing system. We have provided them with training as well as additional workshops for suppliers that were still unsure on how to use the tool.

We have decided that suppliers that do not make use of the electronic invoicing tool from the start of 07 would unfortunately be shut down.

like you say Frank .. this would test the suppliers commitment!i have to admit our big spend supplier have all agreed to make use of the electronic invoicing tool. its the smaller suppliers that are reluctant to make use of this tool!
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