07/09/2021

Retailers: Here’s why you should add eInvoicing to your arsenal

eInvoicing has brought about a new way to send invoices electronically. Like EDI, eInvoicing uses a network model, where each business either connects to the network themselves or uses a service provider. Unlike EDI though, eInvoicing uses a true standard file format exchanged between Access Points, or service providers. You might be thinking EDI also uses standard, and you’re somewhat right. There are standards like EDIFACT in use, but the reality is that retailers generally have their own unique business rules for suppliers to adhere to. Having one true standard to exchange brings a lot of benefits. Here’s why you, as a retailer, should consider using eInvoicing:

It’s easily accessible by your suppliers

Many accounting software packages such as Xero and MYOB offer eInvoicing solutions to their customers today. The solutions are largely integrated with their software making it simple for their customers to exchange eInvoices. Xero and MYOB account for 90% of the small business market, which means a majority of your SME customers could be able to issue you eInvoices today!

It’s low cost or even free for many of your suppliers!

Cost is a big constraint for suppliers complying with EDI requirements. The major players in the accounting software space are proving eInvoicing as part of their product or for a low add-on cost. There are also eInvoicing solutions, like Colladium, that allow suppliers to send eInvoices for free. What better way to onboard suppliers than a free web portal!

Your suppliers only need to connect to the network once to connect with many

eInvoicing through the Peppol network uses a standardised file format. Unlike EDI, it means your suppliers only need to connect to the network once, then they can exchange eInvoices with anyone else on the network. This makes compliance for your suppliers so much easier. Plus, if any of your suppliers are already using Peppol eInvoicing, they can start issuing you eInvoices today!

The network is set to grow

Right now, Peppol eInvoicing supports the exchange of electronic invoices, but that’s expected to change. The purchase order (PO) is currently being reviewed to be added as another message type and more are being looked at. Eventually we could see all supply chain messages being added to the Peppol network. Plus, the Australian and New Zealand Governments have offered incentives for their suppliers to issue eInvoices, so as more businesses get onboard, the more of your suppliers will be ready to exchange eInvoices.

Ready to add eInvoicing to your arsenal? Here’s how…

Adding eInvoicing to your arsenal only takes a few steps:
  1. Contact an eInvoicing service provider Here at MessageXchange, we offer both EDI and eInvoicing services. We’ll translate your software’s native file format messages to the Peppol UBL file. All you’ll need to do is a bit of testing.
  2. Connect to the Peppol network No need to worry, we’ll do the work for you.
  3. Go live! Start sending and receiving eInvoices!
If you’re interested in learning more about adding eInvoicing to your electronic messaging, get in touch with our team.

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E-invoicingEDIRetailers

12/08/2021

The reasons for not being left behind in eInvoicing

eInvoicing is taking off. Businesses are realising the benefits and starting to reap the rewards. Here are some reasons to get ready sooner rather than later and not risk getting left behind.

Start seeing the benefits now

If you’re a supplier to a government agency that’s eInvoicing enabled, and have a contract less than $1 million, you have the benefit of getting paid in 5 days. Government suppliers are already enabling eInvoicing to help their cash flow through faster payment. So how much do you stand to save from implementing eInvoicing now? Sources show a paper invoice or PDF invoice costs around $30.87 and $27.67 respectively to process, and an eInvoice costs only $9.18. Say you send or receive 10 eInvoices a week, that’s a weekly saving of $184 to $217.

Be in a position to say yes to eInvoicing customers straight away

If you’re asked to issue eInvoices, you can do so straight away. You won’t need to spend time finding a solution. If you’re a supplier to a government agency, that’s eInvoicing enabled, and have a contract less than $1 million, you also have the benefit of getting paid in 5 days. Government suppliers are already enabling eInvoicing to help their cash flow through faster payment.

Get enabled before the rush

With an eInvoicing mandate set for all federal government agencies, and possibly other groups soon after, a lot of organisations will be looking to sign up. This will inevitably lead to a rush in demand and possible delays in implementation. This will also lead to suppliers getting involved in the rush. Now is a good time to get enabled if you happen to be a supplier to a government agency or a supplier to an agency.

Being prepared for the possible mandate

You might have heard about a potential eInvoicing mandate for businesses in Australia. The mandate is currently being reviewed by business leaders and industry experts. However, it’s likely to happen in some form, so getting in early will help you avoid any delays and reap the benefits sooner.

How do you get started?

eInvoicing doesn’t need to be complicated:
  1. Find out if your existing software is eInvoicing-capable
  2. If not, talk to an eInvoicing service provider like MessageXchange
    • Fill in a form with your business details and work out which products works best for you
    • Get connected to MessageXchange
    • Start exchanging eInvoices
And don’t forget, eInvoicing helps businesses:
  • Cost savings Studies have found that it costs $30.87 to process a paper invoice, $27.67 a PDF invoice, and only $9.18 to process an eInvoice.
  • Easier invoice processing Removes the need for unnecessary data entry – the invoice just appears in your software.
  • Fewer errors Because much of the data entry is removed.
  • Exchange of invoices directly to and from software To reduce the risk of invoices going astray, reduce the time to receive them and reducing data entry errors.
  • Secure Security measures, like encryption at rest and in transit, are implemented throughout the eInvoicing network so your data remains secure along the way.
If you want to learn more about implementing eInvoicing in your business, get in touch with our team.

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E-invoicinggovernmentRetailersSuppliers

06/08/2021

EDI in the retail industry

Major players in the retail industry have taken advantage of the benefits of electronic data interchange (EDI) over the last 30 years. But there are still some companies that use paper-based procurement. This shows EDI still has potential to deliver even more benefits and savings to the industry. EDI in the retail industry allows companies to electronically exchange documents like purchase orders, despatch advices, invoices and other documents with suppliers. It replaces the manual process of sending these documents via email, fax and other ways of communication. Businesses in the retail industry generally issue a high volume of orders and EDI helps to improve operational efficiency and reduce the turnaround time to process purchase orders and invoices. It also has added benefits like providing more visibility and better customer service.

How is EDI used in the retail industry?

EDI is extensively used in the retail industry. This sector uses EDI for procurement, shipping as well as invoicing. In the procurement process, two basic EDI documents are used: purchase order and purchase order response. The buyer sends the purchase order to the supplier and the supplier then sends the purchase order response back to the buyer. This tells the buyer what can be fulfilled. In the second stage, shipping, the main EDI document used is the advance shipping notice. The supplier sends the ASN to the retailer to notify them about the shipment. It tells the buyer things like what’s being sent in each package, when it’ll be sent, by whom and more. In the final stage, the supplier issues an EDI invoice and sends it to the retailer. The retailer’s accounts payable team can generate an EDI remittance advice and send it to the supplier to confirm payment.

Why is EDI important in the retail industry?

Customer demands for good quality products, competitive deals and low prices have grown enormously, but the expectation for fast delivery has increased more than ever. Retailers today struggle to keep up with the high delivery frequency and keep count of stock (SKUs). EDI helps in automating this process. EDI purchase orders enable retailers to specify store destination with quantities of each product in a single document, the supplier, on the other hand, processes these purchase orders, ships products directly to the stores and sends advance shipping notice with details of products and quantities being shipped. It is because of this EDI process that retailers are able to fast track the delivery process, have visibility of SKUs and reduce human errors and turnaround time. There are also benefits when it comes to receiving invoices. For retailers who receive thousands of invoices a month, the time it takes to enter each invoice into their accounting software can really add up. Not to mention it opens the floodgates to mistakes being made. It’s easy to do a quick calculation of what this might cost a business by multiplying the number of invoices by the time it takes to enter each one by staff members’ salary. It all adds up. Some retailers use scanning or optical character recognition (OCR) but this is usually error-prone and can chew up time just fixing the errors. These processing figures can be slashed if a retailer uses EDI to receive invoices directly into their software. It’s like magic. EDI gives a competitive advantage to companies in the fast-moving retail sector. The Good Guys approached us with the aim to get their suppliers trade electronically with them. They saw EDI as a strategy to have an edge over their competitors. Learn more on how MessageXchange helped The Good Guys achieve this objective and get tremendous results here.

Benefits of EDI for retailers, suppliers and distributors

It reduces errors and saves costs

Traditional procurement involves a lot of manual processes. There is a potential for expensive errors with every instance of human intervention. EDI eliminates manual work, automates the process and reduces transaction errors by 30 to 40 percent. Retailers and suppliers can save costs and reduce errors with EDI integration. They can save up to 90 percent of invoicing costs with EDI.

Shorter transaction times

EDI messages can be exchanged in minutes in contrast to the paper-based documents which can take days to be delivered. These reduced cycles lead to faster invoice processing and improved cash flow. Retailers receive EDI invoices directly into their software so they can process them quickly and efficiently. Target, an Australian department store that operates more than 300 stores in the country, wanted to achieve visibility and remain current and transparent in the fast-moving retail industry. Read how MessageXchange helped Target achieve their goal here.

It frees up time for staff to spend on more valuable tasks

EDI in the retail industry helps to automate processes and lets employees focus more on higher value tasks. Instead of spending time data entry, your staff can spend time on more strategic work to help your business grow. EDI helps both retailers and suppliers to streamline their business process and use their resources mindfully.

EDI documents used in the retail industry

[vc_column width="1/4" css=".vc_custom_1618271818355{padding-right: 10px !important;}"]

Message Types

Purchase Order

Purchase Order Response

Invoice

Despatch Advice

Remittance Advice

Product Catalog

Functional Acknowledgement

[vc_column width="1/3" css=".vc_custom_1628228479994{padding-right: 10px !important;padding-left: 10px !important;}"]

Description

Sent from buyer to supplier to order goods or services

Sent from the supplier to the buyer to let them know how much of the order can be fulfilled, and any discrepancies from the original order

Sent from the buyer to the supplier for payment of the goods or services

Sent from the supplier to the buyer to let them know when and how the goods will be shipped

Sent from the buyer to the supplier to confirm payment

Sent from the supplier to the buyer with up-to-date product and pricing information

An automated response sent from a receiver of an EDI message to confirm receipt of the message

[vc_column width="1/6" css=".vc_custom_1628228971532{padding-right: 10px !important;padding-left: 10px !important;}"]

ANSI X12

850

855

810

856

820

832

997

[vc_column width="1/6" css=".vc_custom_1628229725830{padding-right: 10px !important;padding-left: 10px !important;}"]

EDIFACT

ORDERS

ORDRSP

INVOIC

DESADV

REMADV

PRICAT

CONTRL

If you want to learn more about how EDI works in the retail industry, have a look at our case studies or request a call back from our EDI experts below.

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EDIRetailersSuppliers

03/08/2021

Capture nonfulfillment earlier in the piece: Enter purchase order responses (PORs)

Businesses often don’t find out if an order can be fulfilled until part of that order arrives, or it never turns up. This is where adding a purchase order response (POR) to your EDI messages can help. A purchase order response is sent by the supplier to let the buyer know if their order can be fulfilled. A POR will often include:
  • the related purchase order number
  • an accept or reject indication
  • the number of products the supplier can fulfill
  • the price per unit
  • scheduled despatch date
  • backorder dates, if applicable.

Benefits of purchase order acknowledgement

Capture nonfulfillment earlier in the piece

The POR makes it clear what can be fulfilled. You won’t have to wait to see what turns up – the supplier should let you know much earlier on. It’s also a good way to keep your own customers in the loop about when their order will be ready.

Say goodbye to pricing surprises

No one likes surprises when it comes to getting an invoice. PORs help keep everyone on the same page because the supplier can let you know how much they’ll be supplying the goods for and if they’ll charge you any shipping costs. By getting this information before the shipment is sent and the invoice is issued, you can settle disputes earlier and avoid delays.

Streamline two- or three-way matching

Matching invoices against an order can be challenging if your suppliers don’t fulfill the orders in full. Adding PORs to your EDI messages makes sure everything up-to-date in your systems, so matching is a breeze, saving your team time and effort.

So to conclude…

Adding a purchase order response to your EDI messages can really improve visibility of your supply chain – it gives you clarity on what suppliers can fulfill. But why is this important?
  • You know what you’re going to receive earlier on in the piece
  • You have more transparency on what they’ll ask you to pay before getting the final invoice
  • You’ll reduce the amount of manual data entry, saving time and reducing errors.
If you’re interested in PORs and capturing non-fulfillment earlier, get in touch with our team.

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EDIRetailers

22/07/2021

Which reigns supreme: on-premise or cloud-based EDI?

In the age of digital transformation, customer demands are constantly evolving. It’s important for businesses to not only keep up with those demands but also invest in upgrading their technology to suit. Electronic data interchange or EDI has been around for decades and it’s still an effective way for supply chains to standardise communication. However, some traditional EDI methods have their limitations that make it difficult for businesses to meet demands in today’s sometimes-turbulent times

On-premise EDI software

On- premise EDI software is owned by the business using it and everything from implementation to running the solution is usually done internally. The software is physically on-site and is operated from an in-house server with a connection to an ERP system. On-premise EDI solutions require the company to have an EDI software license, an in-house server, a network and IT staff to support the software.

Cloud- based SaaS EDI software

With cloud-based SaaS EDI, the software is hosted in the cloud (i.e not on-site) and managed by a third-party service provider. Cloud EDI is web- based and is convenient as companies don’t need to invest in any infrastructure, additional resources or licenses. The cloud EDI service provider maintains the software, networks, servers, security and importantly the maintenance for you.

On-premise vs cloud-based SaaS EDI

On-premise EDI software is a more traditional way of exchanging electronic documents through software that is purchased up-front and you own a license to it. It’s your responsibility to complete all software upgrade and backups. Whereas cloud-based, outsourced EDI is more modern and is slowly overtaking on-premise EDI. It’s usually based on a subscription model where businesses pay their service providers for use and maintenance of their solution.

The key differences in on-premise and cloud EDI are:

Cost:

On-premise EDI: An on-premise software requires a lot of effort and can come with large up-front and on-going costs. The initial investment of buying and implementing the software, servers and network and the on-going maintenance and operating cost makes on-premise EDI can be expensive. It may also require extra resources to manage the service within the business. Cloud- based EDI: On the other hand, a cloud-based EDI service is relatively more cost effective and customers have the added bonus of only paying for what they use. Customers don’t have to worry about the maintenance and operating cost as the cloud service provider takes care of all of that, and it’s included in the subscription cost.

Security:

On-premise EDI: Security is the primary concern of many organisations when it comes to procurement and financial transactions. Even though it is believed by many that on-premise EDI solution is more secure as it is in -house and the potential of the information being leaked is less, there are numerous measures that have to be taken to keep your data secure. Your team need to stay on top of security patches and make sure the software is constantly up-to-date to cater for any vulnerabilities. Cloud- based EDI: With cloud-based EDI software, the service provider should have multiple security protocols to keep your data safe. For example, MessageXchange is ISO27001 certified. We maintain the service to this standard and we're audited for this. We also have a team dedicated to ensuring our software it always up-to-date and not exposed to vulnerabilities.

Scalability:

On-premise EDI: When your business grows and you need to trade more electronic documents, on-premise EDI can require you to purchase additional hardware and make more investments to cater for the growth. It can be difficult to scale up your business seamlessly if you’re using on-premise EDI software. Cloud- based EDI: With cloud-based EDI software, it’s pretty easy to scale up your business if your EDI provider has the right infrastructure. Your service provider takes care of the scalability and you can spend more time on the more important tasks for your business and continue to grow. Here at MessageXchange, we’re constantly monitoring the message volumes going through our service to ensure we have ample room to cater for our customers requirements. If you want to learn more about cloud-based SaaS EDI solutions and understand how we can help your business, request a call back from our EDI experts below.

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EDIRetailersSuppliers

21/07/2021

eInvoicing FAQs

1. What integration options do you offer?

We can integrate with any ERP system but some of the common ones we offer integration with are MYOB AccountRight/New Essentials, TechnologyOne CiAnywhere, Basware, Microsoft Dynamics, Oracle (on premise and cloud), SAP (on premise and cloud), NetSuite and Intuit Quickbooks. We’re continuing to add more cloud software to our eInvoicing products, so keep checking back!

2. What is your pricing?

eInvoicing Connect:

eInvoicing Connect is our simplest product for you to get up and running with eInvoicing quickly, easily and with minimal investment. Here’s how it’s charged:
  • Annual subscription to MessageXchange's eInvoicing Access Point: $50
  • Credits: $50 for 1,000 credits
    • Credits are charged at $50 for 1,000 credits. 1 credit is 10kb, or part thereof, of data.
    • For more information on how billing works, click here.
*Support charges may apply

eInvoicing Gateway:

Our eInvoicing Gateways give you full flexibility on how you implement eInvoicing. You can choose your connection protocol (sFTP, AS2, API or something else) and we can map your software’s native file format (like XML or CSV) to the Peppol UBL. Our pricing depends on your requirements – if we need to do any mapping, and customisations and the volume of eInvoices you exchange. Fill out the request a quote form on our website so we can send you some more accurate pricing.

3. Can I send/receive eInvoices with attachments?

Yes, the Peppol standard supports attachments in eInvoices and our solution supports this too. Attachments can be in formats such as PDF, CSV and xlxs.

4. How long does it take to implement eInvoicing?

The implementation time varies with every solution. For eInvoicing Connect, implementation takes about 1 day in total, which also includes testing. For eInvoicing Gateways, the implementation time varies depending on your requirements and complexities.

5. What is the biggest challenge when it comes to eInvoicing?

On-boarding suppliers can be a challenge. Because eInvoicing is still in its early stages, there can be a lack of awareness of it, as well as reluctance to get onboard. We offer free- and low-cost-solutions to help get suppliers on-boarded. Colladium, a business network for collaboration and trade, allows companies to register for eInvoicing within minutes. It's free to use and is accessible from a web browser for companies to send and receive Peppol-compliant eInvoices. We also offer low-cost eInvoicing integrations to MYOB and TechnologyOne through our eInvoicing Connect product, with plans to this available to other software users in the future.

6. How can I see if my trading partners can send/receive eInvoices?

Anyone can search the Peppol directory to find out if a business can receive eInvoices. We also offer integrated solutions to our customers to easily check if their trading partners are eInvoicing enabled. Have a chat with us to find out more. And if you try to send an eInvoice to someone who can’t receive it, we’ll let you know!

7. I need a purchase order number/bank details/something else to process an invoice in my software. How do I make sure I receive this on eInvoices?

For customers who subscribe to an eInvoicing Gateway, we can configure your own business rules in your Gateway to check that incoming invoices have certain data present, like an order number or bank details. If we find that the eInvoicing doesn’t have these details, we can automatically send a response message (business level response or BLR) back to the sender to let them know that the invoice has been accepted or rejected and notify them of what action they need to take, if any. Have a chat with our team to find out more. Talk to our team about getting started with eInvoicing.

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E-invoicinggovernmentRetailersSuppliers

13/07/2021

Advanced shipping notices: Get more visibility of your orders

So you’re trying to improve visibility of your orders? There is a way – it’s called an advanced shipping notices (ASNs).

What is an ASN?

ASNs are provided by the supplier to let their customer know:
  • what is in the shipment
  • the delivery date and time
  • where the shipment is going
  • the product details
  • how it’s packaged
  • the carrier information.
Suppliers send the ASN to retailers once the shipment has been packed, allowing the retailer to plan to receive the goods.

How does an ASN work?

Retailers send the order through EDI as usual, and the supplier can respond with a purchase order response (POR) or acknowledgement (POA). When the supplier is ready to ship the goods:
  1. The supplier prepares the goods for delivery
  2. The supplier enters all the information on the ASN. This includes what goods are packed into what carton or pallet, if the goods are perishable or have a batch number, these details will go on there too, the supplier will enter the delivery date and more.
  3. The ASN will generate a serial shipping container code (SSCC) and label for each carton or pallet being created. The supplier will then print these labels and attach them to each package.
  4. When the supplier sends the ASN, the retailer receives the advanced shipping notice into their software for planning. It will include all the information the supplier had input in step 2.
  5. When the retailer receives the goods, they can simply scan the SSCC labels, which can be matched against the ASN information they received, to know exactly what’s come in.

The benefits of ASNs

It improves supply chain visibility

ASNs bring you a step closer to supply chain automation. ASNs will give you an understanding of what you’re receiving straight into your business systems. Your warehouse team can use this information to plan for the delivery in advance. They can also allow suppliers to add SSCC labels providing information of individual packing units (pallet, carton, etc). This allows buyers to cross check what has been received with what is in the ASN.

It can reduce warehouse costs

By knowing in advance what you’ll be receiving, your warehouse team can plan ahead. This ensures you can organise staff when you need them saving time and money. Cost savings in goods receiving activity can be as high as 40 to 50% .

It required much less manual data entry

ASNs are received directly into your business systems. No need for manual inputting of data which can produce costly errors.

It improves customer service

Customers want to know when they’ll be receiving their orders. Retailers, especially those using drop shipping, can send some of the delivery data from the ASN to customers. Customers will then be able to keep track of their order. If you’re interested in ASNs and gaining more visibility of your supply chain, get in touch with our team.

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EDIRetailers

29/06/2021

Creating an eInvoicing compliance program to onboard your suppliers

If you’re onboarding a lot of partners, knowing all parties can send and receive eInvoices is very important. But this is where it gets complicated and time consuming, unless you have an eInvoicing compliance program.

What is an eInvoicing compliance program?

It makes sure ensures suppliers learn how eInvoice you complete with the information and format you need. This could be to make sure your two-, three or four-way matching works, or to make sure the data can be input into your software correctly, or even to help with your automated approval processes.

What does a compliance program check for?

Normally they check:
  • each eInvoice features the information you need, like a purchase order number or payment details
  • the invoice only has characters that your software can accept, like no special characters or adherence to character limits
  • all the elements are in the right place.

There are two types of compliance programs…

1. Manual

  1. a supplier sends you an eInvoice
  2. you review it closely to ensure it meets your criteria
  3. you ask your supplier to amend any issues
  4. you manually repeat this via phone/email until they get it right (particularly time consuming if you’re onboarding a lot of suppliers)
As you can see, manual processing takes a lot of time. In fact, you might even need a few temps get you through.

2. Automated

With an automated program like Colladium it’s a lot easier.
  1. You tell us your requirements
  2. we configure the workflow and business rules
  3. you invite your suppliers to register on Colladium
  4. your supplier upload their eInvoice to Colladium, which automatically reviews it and lets suppliers know if there’s any problems
  5. This 100% automated process keeps repeating until everything is perfect. No temps or staff involved. Just maximum productivity and full visibility of each supplier’s progress.

Why an automated program?

  • It’s a lot less hassle, no phoning/emailing to suppliers to fix errors
  • It’s cheaper
  • It’s 100% automated so no extra staff needed
  • Your team’s free to get on with their jobs.

How to work out if you need an automated compliance solution

Ask yourself, do you:
  • have a lot of suppliers to onboard?
  • lack time and resources?
  • have set invoicing rules for suppliers?
  • don’t want valuable staff time wasted running a manual system?
If you answered YES to any of these then the answer is YES! Get in touch with our team today to learn more about eInvoicing compliance programs.

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E-invoicingRetailers

28/06/2021

The benefits of an eInvoicing mandate for software providers

Right now, a lot of software providers are holding back on enabling eInvoicing due to low demand. However, an eInvoicing mandate would completely change this in 3 ways.

1. Demand for eInvoicing enabled software will explode

If there’s a mandate, businesses will be scrambling for eInvoicing solutions. And while existing customers will want to use their current software, businesses without a financial software will want one ASAP.

2. Welcome to your new revenue stream

You could offer eInvoicing as a premium feature for existing customers or as a standalone product for businesses. Lots of options.

3. Your competitive advantage is waiting

Software that allows eInvoicing will be a differentiator. Xero and MYOB are currently offering eInvoicing to their customers.

MessageXchange offers two solutions to help you integrate eInvoicing

eInvoicing Gateway

  1. Choose your protocol and file format and we’ll connect you.
  2. We translate your file into the Peppol eInvoice file format.
  3. When you or a customer sends or receives an eInvoice, we’ll facilitate it through the Peppol network.
  4. We can help you provide additional services for your customers, including:
    • Reporting To allow your customers to get more insights from the eInvoices they receive or even to track the number of eInvoices exchanged.
    • Business process management To allow you customers to add additional checks on eInvoices they receive like dates being in the future or having a PO number on the eInvoice and build escalation processes around them.
    • And more.
  5. There are minimal changes needed on your side.

eInvoicing Connect

Our eInvoicing Connect product makes it easy for your customers to get onboard to eInvoicing. We connect to your cloud-based software so your customers can subscribe to a low cost solution. Contact us to find out more. Get in touch with our team to learn more about how eInvoicing can improve your business.

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E-invoicingRetailers

20/05/2021

Benefits of an eInvoicing mandate for businesses

The possibility of an eInvoicing mandate for Australian businesses is generating a lot of talk. Right now, the government is seeking feedback on the best way to do this. While mandates can be daunting, this one offers businesses significant benefits.

Direct benefits

  • faster payment
  • automated invoicing processes
  • reduced costs and paper use
  • fewer errors
  • improved security.
Check out our Benefits of eInvoicing for businesses infographic for more.

Businesses will get paid faster

At any given point it’s estimated that unpaid invoices for Australian businesses total $26 billion. According to sources, eInvoicing will reducing payment times and:
  • improve on-time payment by 15%+
  • reduce processing time by up to 65%.

$28b saved over 10 years

Australia exchanges 1.2 billion invoices p.a. eInvoice processing is around 70% cheaper than traditional invoice processing, saving the economy an estimated $28 billion over 10 years.

Business has a reason to get onboard

A mandate will hasten the crucial digitisation of business. More eInvoicing means more businesses on the network making it work better for users, delivering significant benefits for everyone.

The broader digitisation of business and trade

We can all agree digitisation is the future. eInvoicing simplifies trade for many businesses by reducing processes and international trade barriers while improving systems and providing more growth opportunities.

More software will allow eInvoicing

An eInvoicing mandate for business will drive software providers to integrate eInvoicing into their products.

What we’ve seen from other mandates

In Australia Single Touch Payroll (STP) was mandated. It forced employers to disclose payroll and tax information to the ATO after every payday. Without it, businesses would still be using an error prone, paper-based and manual reporting system. Employees would also need a PAYG summary when they do their tax returns.

So, what’s the takeaway of a possible eInvoicing mandate?

An eInvoicing mandate would kick off great things for Australian businesses as they streamline their legacy processes and reduce costs. But adoption is key and an eInvoicing mandate will ensure this. Get in touch with our team to learn more about how eInvoicing can improve your business.

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E-invoicingRetailers

18/05/2021

Three tips to convince senior leadership you need EDI now

Convincing senior management is key to getting a project off the ground. After all, they’re usually the business sponsor. If you’ve identified that EDI is going to benefit your business, here are some tips to convince your senior managers that you need EDI.

Put together a business case

The key thing is to highlight the cost savings of EDI – to show them the impact it’ll have to the bottom line. Here are a few calculations you can use:Orders Calculate the cost of sending a purchase order to your supplier.[vc_column_inner width="1/4" css=".vc_custom_1584660745420{padding-right: 0px !important;}"]

(time it takes to put together email or postage x orders sent x hourly rate)

[vc_column_inner width="1/12" css=".vc_custom_1584660555829{padding-right: 10px !important;padding-left: 10px !important;}"]

+

[vc_column_inner width="1/4" css=".vc_custom_1584660670420{padding-right: 0px !important;padding-left: 0px !important;}"]

printing related costs

[vc_column_inner width="1/12" css=".vc_custom_1584660587092{padding-right: 10px !important;padding-left: 10px !important;}"]

+

[vc_column_inner width="1/4" css=".vc_custom_1584660687060{padding-right: 0px !important;padding-left: 0px !important;}"]

postage costs

The cost of suppliers processing the orders incorrectly.[vc_column_inner width="1/4" css=".vc_custom_1584660745420{padding-right: 0px !important;}"]

number of orders incorrectly processed

[vc_column_inner width="1/12" css=".vc_custom_1584660555829{padding-right: 10px !important;padding-left: 10px !important;}"]

X

[vc_column_inner width="1/4" css=".vc_custom_1584660670420{padding-right: 0px !important;padding-left: 0px !important;}"]

time it takes to rectify the incorrect entries

[vc_column_inner width="1/12" css=".vc_custom_1584660587092{padding-right: 10px !important;padding-left: 10px !important;}"]

X

[vc_column_inner width="1/4" css=".vc_custom_1584660687060{padding-right: 0px !important;padding-left: 0px !important;}"]

hourly rate

Invoices Costs of processing an invoice for payment.[vc_column_inner width="1/4" css=".vc_custom_1584660745420{padding-right: 0px !important;}"]

time it takes to enter invoices into software

[vc_column_inner width="1/12" css=".vc_custom_1584660555829{padding-right: 10px !important;padding-left: 10px !important;}"]

X

[vc_column_inner width="1/4" css=".vc_custom_1584660670420{padding-right: 0px !important;padding-left: 0px !important;}"]

number of invoices

[vc_column_inner width="1/12" css=".vc_custom_1584660587092{padding-right: 10px !important;padding-left: 10px !important;}"]

X

[vc_column_inner width="1/4" css=".vc_custom_1584660687060{padding-right: 0px !important;padding-left: 0px !important;}"]

hourly rate

Costs of fixing incorrect invoice payments.[vc_column_inner width="1/4" css=".vc_custom_1584660745420{padding-right: 0px !important;}"]

Time it takes to fix errors in invoices

[vc_column_inner width="1/12" css=".vc_custom_1584660555829{padding-right: 10px !important;padding-left: 10px !important;}"]

X

[vc_column_inner width="1/4" css=".vc_custom_1584660670420{padding-right: 0px !important;padding-left: 0px !important;}"]

number of invoice payment errors

[vc_column_inner width="1/12" css=".vc_custom_1584660587092{padding-right: 10px !important;padding-left: 10px !important;}"]

X

[vc_column_inner width="1/4" css=".vc_custom_1584660687060{padding-right: 0px !important;padding-left: 0px !important;}"]

hourly rate

Warehouse Costs of updating incorrect data[vc_column_inner width="1/4" css=".vc_custom_1584660745420{padding-right: 0px !important;}"]

Time it takes to update inventory in system

[vc_column_inner width="1/12" css=".vc_custom_1584660555829{padding-right: 10px !important;padding-left: 10px !important;}"]

X

[vc_column_inner width="1/4" css=".vc_custom_1584660670420{padding-right: 0px !important;padding-left: 0px !important;}"]

number of orders with incorrect data

[vc_column_inner width="1/12" css=".vc_custom_1584660587092{padding-right: 10px !important;padding-left: 10px !important;}"]

X

[vc_column_inner width="1/4" css=".vc_custom_1584660687060{padding-right: 0px !important;padding-left: 0px !important;}"]

hourly rate

Once you’ve done that you can use these figures to work out your expected ROI.[vc_column_inner width="1/4" css=".vc_custom_1584660745420{padding-right: 0px !important;}"]

Savings

[vc_column_inner width="1/12" css=".vc_custom_1584660555829{padding-right: 10px !important;padding-left: 10px !important;}"]

÷

[vc_column_inner width="1/4" css=".vc_custom_1584660670420{padding-right: 0px !important;padding-left: 0px !important;}"]

(establishment costs + running costs)

* These calculations are to be used as a guide only

Get buy in from other departments

Having the support of internal departments can be what helps a project over the line. There are a few departments in particular that play a big part in the EDI implementation and ongoing processes.

IT

EDI integrates with your software, so your IT team will help with a lot of the technical aspects. Thinking of ways to make their lives easier will go a long way, so ask them:
  • If they’ll need new hardware or software?
  • If they’ll need additional resources to implement EDI?
  • If your EDI provider adheres to your security policy?

Buying or procurement

The buying or procurement teams will probably be concerned about any impact to their ordering process. EDI uses your existing software and automates the exchange of purchase orders, invoices and other messages. Make sure to show them how EDI will simplify their tasks, such as:
  • Providing them with more information like what can be fulfilled and when the order will arrive.
  • Faster stock fulfilment because suppliers will receive orders almost instantly.

Finance

When convincing your finance team, focus on promoting the benefits of EDI. It reduces the amount of manual inputting required and can automate a lot of their processes, leading to:
  • fewer errors: less time and costs to fix mistakes
  • reduced costs: no need to printing and archive paper invoices.
  • more time, allowing staff to work on higher value tasks
  • more accurate data for decision making.
All of this, in turn, can lead to significant cost savings.

Develop a solid plan

Having a plan will give management confidence that you’re on the road to success. Here are three things to include:

The implementation plan

The most important thing in your plan is to set deadlines for each deliverable. At the end of the day, management will want to know when it’ll be completed so they can ensure a solid return on investment. It’s also worth outlining the team members involved in each stage of the process. This’ll provide transparency for everyone involved.

Staff training

EDI will require some change (a good change!) in your business so a little training will help everyone come along on this journey and make sure they feel equipped to handle the change. The training should cover new processes, such as:
  • how accounts staff will process payments to suppliers?
  • how buying teams raise purchase orders?
  • how warehouse staff process deliveries?
It’s also worth adding back up plans to your training to cover the unlikely scenario of an outage to your EDI service. This is also useful for management to show how operations will continue.

Onboarding suppliers to EDI

The amount of trading partners you onboard is paramount to a good ROI. Having a plan for onboarding suppliers will improve the success and also provide confidence for your management teams. Check out our 10 steps to successful community onboarding to learn more.

So summing up...

Getting buy in from management can be daunting but there are a few things that can help.
  • Show off potential savings from EDI.
  • Show you have buy-in from other departments.
  • Develop a plan with dates of key deliverables.
  • Keep management up-to-date with progress as you go.
If you want to learn more about how EDI can help your business, get in touch with our team.

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EDIRetailersSuppliers

14/04/2021

EDI: To in-house or outsource?

When it comes implementing EDI, you have two options. You can do it in-house, but you’ll need to set up a dedicated EDI team with right software and infrastructure. Or you can outsource it to an EDI service provider, which is generally a lot easier and more cost effective. The 4 things to consider in making your decision are:
  1. how much does your company know about EDI?
  2. how many trading partners will you be linking to?
  3. do you have enough spare time to do it inhouse?
  4. do you have complex or outdated software?
Now, let’s compare both options to understand what you’ll need and what outcomes to expect.

Implementing EDI in-house

Step 1: Put together an expert internal EDI team

An in-house roll out is a serious undertaking and starts with putting together an expert internal EDI team to plan, implement and maintain your EDI system. This expertise will need to be ongoing to keep it operating effectively.

Step 2. Get all internal departments involved

Talk to all the relevant internal departments – procurement, finance, warehouse, IT etc – to work out how each one will be impacted and what’s needed to setup EDI.

Step 3: Buy the right software, hardware and infrastructure

Expect this to be costly, and don’t forget to factor in the ongoing maintenance bills. And you’ll need the internal expertise to get it 100% right the first time.

Step 4: Establish a secure and seamless connection with all partners

If your company isn’t experienced working with suppliers or VANs (value Added Networks) this lengthy, arduous process starts with establishing individual partner connections followed by an often laborious testing process of exchanging messages with their EDI provider to make sure messages are being correctly sent and received. Pros and cons to in-house implementation[vc_column width="1/2" css=".vc_custom_1618271818355{padding-right: 10px !important;}"]

Pros

No need to wait for your EDI provider to make changes

[vc_column width="1/2" css=".vc_custom_1618271827363{padding-left: 10px !important;}"]

Cons

Significantly higher staff investment

Maintenance is your responsibility

Without your own dedicated EDI team implementation will be lengthy, complex and costly

As you can see, if you’re time poor and lack the crucial internal resources and EDI knowledge, in-housing your EDI implementation is probably not your best option.

Outsourcing EDI

Step 1: Find the right EDI supplier

Getting someone else to do all the heavy lifting of an EDI implementation offers significant benefits. But you need the right provider. Here’s your 4-step check list to do just that:
  1. Do they meet your technical requirements? Eg, what services can they provide – onboarding, mapping, training, etc? Are they flexible enough?
  2. Can they tailor a solution to your needs and objectives?
  3. Do they have experience in industries relevant to yours?
  4. Is their support offering and pricing what you need?

Step 2: Connect to your EDI provider to ensure everything works

This includes testing your files and connection. But don’t stress, as your provider will guide you through.

Step 3: Connecting with partners

Again, your EDI provider will do this for you this so no stress at your end and you’re 100% ready to go! Pros and cons to in-house implementation[vc_column width="1/2" css=".vc_custom_1618271818355{padding-right: 10px !important;}"]

Pros

No worries about updating EDI technology and systems

Your EDI provider manages all trading partner requirements

You don’t need a dedicated internal team of EDI experts

[vc_column width="1/2" css=".vc_custom_1618271827363{padding-left: 10px !important;}"]

Cons

Some providers are offshore with differing time zones

The undeniable conclusion is…

  1. If you don’t have expert EDI knowledge and resources you should outsource EDI implementation. It’s also very practical if you’re changing your ERP or other software.
  2. A good EDI provider knows their way around most software which makes all integrations significantly easier.
  3. If you already use EDI but have outdated systems and high maintenance costs, outsourcing is a good idea.
To learn more about how outsourcing EDI will help your business, get in touch with our team today.

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EDIRetailersSuppliers