e-Invoicing Report How Ready Is This Market Sponsored By Basware July 2009

E Invoicing Report on
How Ready is this Market?
Sponsored by

July 2009

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this document or any portion thereof without prior written consent from
sharedserviceslink.com or the sources referred is forbidden.

What is your main ERP for F&A?

SAP JD Edwards Agresso Other

6%
5%
6%

83%


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

8

7

6

5

4

3

2

1

0
Less than 200,000 200,000 - 499,999 500,000 - 999,999 Over 1 Million


What % of invoices are paper today
(scanned/keyed/OCR'd)?
47% of respondents are
still processing 90% or
more txns as paper
8

7

6

5

4

3

2

1

0
100% 90% - 99% 80% - 89% 70% - 79%


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

8

7

6

5

4

3

2

1

0
Less than 5% 6% - 10% 11% - 20% 21% - 30% Over 30%


What % of invoices currently arrive via a
network or a hub? 56% of respondents
are not processing via
a hub

20% - 39%
13%

10% - 19%
19%

0%
56%

1% - 9%
12%


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

10

9

8

7

6

5

4

3

2

1

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


What is the cost per manual PO invoice?

4.5

4

3.5

3

2.5

2

1.5

1

0.5

0
€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?

4.5

4

3.5

3

2.5

2

1.5

1

0.5

0
€0.5 - €1.00 €1.01 - €3.00 €3.01 - €5.00 €5.01 - £10.00


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

4001 - 6000
13%
200 - 500
40%
1001 - 4000
27%

500 - 1000
20%


What is that number as a % of your total
supplier database? 50% of respondents
receive 80% of
invoices from 10% or
less of suppliers

1% - 5%
16% - 20% 19%
31%

6% - 10%
31%
11% - 15%
19%


How many countries do 80% of your invoices
come from? 65% of respondents
receive 80% of
10 invoices from 1 – 4
9
countries
8

7

6

5

4

3

2

1

0
1 2 to 4 5 to 7 8 to 12


Which countries do 80% of invoices come
from?

Finland
Austria
Canada
India
Slovakia
Norway
Denmark
Netherlands
Poland
North America
Sweden
Belgium
Spain
Switzerland
France
Italy
Germany
UK

0 2 4 6 8 10 12 14


When do you look to be live with your e
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% 28%

11%
22%
11%


What are the 2 main drivers for e invoicing?

Increase productivity

Improve cash managent

Take EPDs

Better contol of data/information

Optimise SAP

Drive out touchpoints and process inefficiencies

Improved quality of process/reduce time

Cost reduction

0 2 4 6 8 10 12 14


What are the 2 main reasons you have
waited to implement?
Industry not ready

Busy acquiring companies

Process required improving first

Costs to make it happen

System upgrades

Market not ready

Legal and VAT requirements has caused delay

No resource/other projects on go

0 1 2 3 4 5 6


How would you describe the relationship
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
• 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

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What % of today's costs (per invoice) do you
believe will be saved as a result of e
45% of respondents
invoicing? believe e invoicing
will cut their invoice
6 costs by over 60%

5

4

3

2

1

0
Over 80% 60% - 79% 40% - 59% 20% - 39% Under 20%


Conclusions
• 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
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 Basware – the 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.
• 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

e-Invoicing Report How Ready Is This Market Sponsored By Basware July 2009

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e-Invoicing Report How Ready Is This Market Sponsored By Basware July 2009