Supplier Enablement

Supplier Enablement- off the wall

To ease into 2007 here is an interesting couple of comments that I found recently.

Suppliers have to think: why would a customer adopt a system if it were going to create more work for them? So if you are a supplier approached by a customer to submit electronic invoices in replacement of paper invoices is your first thought; will this mean more or less work for my customer?

The businesses that have been most successful with the introduction of eInvoicing are those with captive suppliers. If you are a supplier to a business would you know if you were thought of as captive?

Finally two thoughts for 2007.

1. Surveys identify that banks are the preferred provider for electronic invoicing services. This makes sense as payment of invoices is cleared through the banks (whether that payment is by cheque or EFT) and of course they offer liquidity (cashflow) through invoice factoring and invoice discounting. What developments can we expect as banks look for revenue earning opportunities from the increasing use of electronic invoicing? Click here for how a bank helps a major retailer pay its suppliers.

2. It is well known that the problem facing the development of electronic invoicing is getting suppliers on board. This remains true but statistically we know the numbers increase year on year in the number of participants (buyers and suppliers) and number of electronic invoices. As we exit early adopter phase and move to a market that has a herd instinct then the opportunity size will grow rapidly and attract new players and new propositions.

Will this be the moment that a shift occurs from a technology led business (connectivity to enable transactions at a lower cost) to a services led business (an infrastructure for business) and will that be the trigger for banks and telcos and post and outsourcing providers to pile in?

If only we could see into the future.

Labels: banks, electronic invoicing, supplier portal

posted by FrankB @ Tuesday, January 02, 2007