We attended and sponsored the 7th Finance and Accounting Shared Services and Transformation conference this week. Our intention was to both present our message about electronic document exchange to a wider audience and to learn more about the market for Electronic Document Exchange, companies experience of it and what successes companies had observed.
This was an eye opening experience. I guess I believe too much of the marketing hype. The messages we received were that, whilst some companies are dipping their toe in to receiving electronic invoices, very few are actually using electronic document exchange to drive through long term improvement to business process. One reason for this is the EIPP (Electronic Invoice Presentation and Payment) movements focus on invoice only. The only driver for this appears to be reducing headcount in accounts payable rather than looking at the entire procure to pay process. This is a huge opportunity missed.
For example we have been the technology partner for COINS etc, the largest electronic trading exchange for the construction industry in the UK, for 6 years. Whilst we have some very good technology and services, equally important has been the drive of COINS, in their ERP system, to look at the entire business process and help construction companies not just reduce the cost of typing in an invoice but also to show how changes to business processes can greatly improve procure to pay for all parties in the transaction for the long term.
Likewise outside of construction we have worked with organisations in Logistics, such as GM2, that have changed their business processes to offer a greater level of service to their customers. The NAAFI in the uk have evolved new business processes using electronic document exchange that greatly improves there purchasing and streamlines the process for their suppliers.
One of the messages from the conference is that EIPP, because of its limited focus, has done few favours for long term benefits for its customers. Such a limited focus will lead to short term cost reductions but for the long term you need to look to the full process.
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