Moving to electronic can save 80% of invoicing costs
Investments in electronic invoice processing can be returned within 6 months, according to a new report which investigates global opportunities for electric invoicing.
Sponsored by GXS, the new Billentis report delivered new insight into the economic challenges driving e-Invoicing, in addition to confirming a 60-80% savings with e-Invoicing compared to traditional paper invoicing.
The Billentis report highlights the importance of the market opportunity within Supply Chain Finance (SCF), the set of solutions available for financing specific goods and /or products. With a $1.3 trillion global market for receivables, only a small portion is currently using SCF techniques. But, the report indicates more than half are investigating options to improve SCF functions. And, many companies are looking to monetise receivables and payables to provide liquidity within their supply chain.
“Today’s finance departments face a complex and challenging business environment that requires tremendous business savvy, making innovation an essential driver of the department’s excellence,” said Bruno Koch, owner at Billentis. “Erratic markets, the globalisation of trading, new regulation and compliance issues, increasing complexity of business processes and steady change/transformation have forced the function of finance to redefine its role in the organisations.”
e-Invoicing is gaining an even greater importance as a tool for businesses to maintain an efficient supply chain. Consequently, CFOs are being increasingly called upon to manage information and technology that would normally have been reserved for the CIO.
“As electronic invoicing becomes a mainstream financial activity, CIOs and CFOs need to work more closely together. Many financial supply chain teams have already begun trading electronically with EDI and need to increase their communications to better align their goals,” said Nigel Taylor, head of e-Invoicing at GXS. “GXS has always believed that 2013 will be a pivotal year for e-Invoicing. Identifying increased government mandates, a strong focus on corporate supply chain risk and easier accessibility to e-Invoicing for SMEs as key drivers for this growth, the Billentis report supports our prediction.”
GXS is a leading B2B integration services provider and operates the world’s largest integration cloud, GXS Trading Grid®. Our software and services help more than 550,000 businesses, including 22 of the top 25 supply chains, extend their partner networks, automate receiving processes, manage electronic payments, and improve supply chain visibility
Cainiao Network Launches Customer-Centric Logistics
As the logistics division of the Alibaba Group, Cainiao Smart Logistics Network has decided to provide its Southeast Asian customers with unsurpassed service during its annual shopping festival. Based on customer feedback surveys, the company will expand its real-time customer service support and speed up delivery times. ‘By expanding and deepening our services, we aim to provide a stronger logistics infrastructure that can bolster the booming eCommerce sector, support merchants’ expansion into new markets and diversify retail options for consumers’, said Chris Fan, Head of Cross-Border, Singapore, Cainiao Network.
Who Is Cainiao?
According to TIME Magazine, Cainiao ‘is far from a typical logistics firm’. The company controls an open platform that allows it to collaborate with 3,000 logistics partners and 3 million couriers. This means that merchants can choose the least expensive and most efficient shipping options, based on Cainiao’s real-time logistics analytics. The company’s goal is to ship packages anywhere in the world in under 72 hours—and for less than US$3.00.
For countless small business owners around the world, from coffee-growers to textile-weavers, this could change everything. Usually, it costs about US$100 to ship a DHL envelope from Shanghai to London in five days. Cainiao aims to change that. Said its CEO Wan Lin: ‘The biggest barrier to globalisation is logistics’.
What’s Part of the Upgrade?
Throughout the Tmall festival, Cainiao’s logistics upgrade will be divided into four critical segments:
- Real-time customer service support. Cainiao has launched a direct WhatsApp channel for customers to receive logistics updates and ask questions.
- Expansion of air freight parcel size and weight limits. Packages can now be up to 30 kilograms or 1-metre x 1.6 meters to help ship large items such as furniture.
- Daily air and sea freight connections. Shipping frequency will almost double to seven times weekly to maintain resilience and efficiency.
- Compensation for lost or damaged packages. Customers will be reimbursed up to RMB 2,000 (US$311).
Where is the Company Headed?
From June 1st to June 20th, the finale of Tmall, Cainiao will ensure that its customers feel confident in the company’s ability to deliver their packages. Despite global shipping delays due to COVID, the show will go on. Said Fan: ‘This series of customer-centric logistics upgrades reaffirms our goal of pursuing value-added services to enhance customers’ shopping experience while mitigating challenges posed by external factors’.
Furthermore, Cainiao has recently expanded its Southeast Asian operations, achieving revenue growth of 68% year-over-year. In Malaysia, the logistics operation has partnered with BEST Inc. and Yunda; in Singapore, the company has partnered with Roadbull, Park & Parcel, and the Singapore Post. And if its recent measures help retain and grow its customer base, the company will be well-poised to lead the industry in resilient and customer-centric global logistics. ‘COVID-19 made everyone realise how important the logistics infrastructure backbone is’, said Wan. ‘And it gave us a peek at what Cainiao should look like in three years’.