A large car manufacturer can have tens of thousands of suppliers, and can receive tens of millions of invoices each year. With these kinds of volumes and the complexity that global supplier networks create, it’s no wonder car manufacturers strive to maximize purchase-to-pay (P2P) automation. And at the heart of this is e-invoicing.
This past November, Basware hosted over 300 automotive industry manufacturers and suppliers in Frankfurt, Germany. The atmosphere was positive and energized as guests listened to speakers and panel discussions. During breaks in the program, participants engaged in productive discussions with their peers. All about e-invoicing.
The automotive industry has been a front-runner in e-invoicing. Manufacturers and suppliers have worked together in standardizing the e-invoice content to include detailed information in specific formats.
Now manufacturers are working with their suppliers to increase the level of e-invoicing. For manufacturers, the challenge lies in the long tail of small volume suppliers who do not have the technical capabilities or the financial incentives to set-up point-to-point EDI connections with their customer. These suppliers may send only a few invoices per month each, but they are paper invoices. And because there are so many of these small suppliers, that means a lot of paper invoice handling for the Accounts Payable department.
The best way to get these small volume suppliers to send e-invoices is to make it easy for them. With the help of Basware, car manufacturers can offer free or low cost options for e-invoicing like portal/invoice key-in, emailing PDF invoices, or virtual invoice printing. Or, better yet, manufacturers can migrate their suppliers to integrated e-invoicing. Suppliers benefit from cost and time savings, cash flow transparency, and higher customer satisfaction.
Basware moves the long tail of suppliers to e-invoicing. Through jointly-organized events, like the one in Frankfurt, Basware can help customers to educate their suppliers. More importantly, Basware offers a complete Supplier Activation Program to manage the on-boarding of suppliers. This way, big buyers, like automotive manufacturers, can increase the numbers of e-invoices and, thereby, enable greater P2P automation.
Read more in the Electronic Invoicing in the Automotive Industry Whitepaper »