GETTING SUPPLIERS ONBOARD WITH E-INVOICING Stephen Carter, Head of eInvoicing UKi

FIVE HOT TOPICS 1.Are suppliers are ready for e-invoicing? 2.Why should e-invoicing be part of a digital transformation strategy 3.Targeting and understanding your suppliers 4.Strategies for successful e-invoice adoption 5.How to message to suppliers

SETTING THE SCENE Real person sat on train near me talking to a friend.... ”this [customer] is a real [pain], I’ve posted them an invoice but it would be [damed] sight better if I could do it on my [smartphone]. I have to send them the same invoice a few times before I get paid LATE”

MY SUPPLIERS ARE SME’S SO I CAN’T DO E-INVOICING!

Ever thought that they may be waiting for you to ask them for an e-invoice – it would make their lives easier!

WHAT IS E-INVOICING? What is it? Working Smart or ‘digitally’ ‘Smart’ communications Strategy solution for trading What isn’t it? Just invoicing but ordering Just PDF Just a tactical fix

WHAT ARE THE REAL BARRIERS? Physical thinking iPOD (Walkman) for music DVD player for watching films Phone for calls (and texts!) Laptop for s and internet Tablet for Facebook and Internet Newspaper for the news Why? Because it’s how we’ve always done it! Digital thinking Smartphone Why not? Ummmmm. Because I already have a phone…

WHAT ARE THE REAL BARRIERS? Physical thinking Buyer send PO with lots of line items Supplier consolidates line items to send one invoice Buyer processes each line item manually Buyer allocates costs codes per line item Buyer consolidates and issues payments Supplier reconciles payments across accounts Supplier & Buyer completes VAT information days in lapsed time, total cost > £20? Why? Because it saves paper and that’s how we’ve always done it! Digital thinking Buyer send e-Order per ‘line’ item Supplier e-invoices per ‘line’ item Automatic match of PO to Invoice Automatic pay on approved invoice Automatic reconciliation of payment Even automatic VAT collection In real-time with a total cost < £1 Why not? Because our process is based around paper and our suppliers will not move!

WHAT’S YOUR VIEW OF A SUPPLIER?

TARGETING SUPPLIERS Technical MaturitySupplier Size Transactional Volume

The ‘Chasm’ ON-BOARDING STRATEGY Innovators Early Adopters Late Adopters Late Majority Laggards Mainstream

ON-BOARDING STRATEGY Innovators Early Adopters Late Adopters Late Majority Laggards THE CHASM Mainstream

ON-BOARDING STRATEGY THE CHASM Size is not Important – honest! In for the long hall Agility and success Drives changes

MESSAGING STRATEGY Early Payment & more Sales Late Majority THE CHASM Innovation & Personal Advantage Mandates & Timeline No choice Set Internal Expectations Announce early success Never waist time on laggards Never force an early adopter!  Target & Learn Offer choice & Avoid Laggards Just move on!

E-INVOICING - A SUPPLIERS THOUGHTS? How can I do this without ICT input? If I do this now, will it cut out my competitors and make me more money? Can I now get paid quicker? Can I use this to sell more ‘stuff’? Great, this will cut my credit control effort and my cost of sale. Your Supplier

THE E-INVOICING MENU Technical MaturitySupplier Size Transactional Volume PDF e-Invoice via CloudScan or Outsourced Suppliers Open Network PORTAL Back Office Integration INV PO INV PO INV €$£

THE WORLD IS CHANGING

Next generation technology Digital agenda 2020New working methods It’s no longer ‘when’ or ‘if’, it’s ‘are you ready?’

UNDERSTANDING THE OPPORTUNITY That person sat on train near me talking to a friend.... ”this [customer] makes it so easy for me, I create an invoice instantly on my phone and they pay within days. Its so good I’ve cut my prices and focus on them as a key customer – real partnership!”

FIVE TAKEAWAYS 1.The suppliers are ready for e-invoicing 2.E-invoicing is part of a digital thinking strategy 3.Never focus on the ‘laggards’ - always focus on interested suppliers 4.Set internal expectations for early success around interested suppliers 5.Evolve your message around the supplier not your business!

THANK YOU