Author: Pete Loughlin

The UK Government last week published what they call their “Information Economy Strategy” in which the UK’s intentions for e-invoicing in public sector are stated. It’s been met with a positive, indeed an enthusiastic response. But not from me. This is what the UK government says: “Government also wants to make it easier for its suppliers once they have won contracts, by encouraging the use of electronic invoicing.” And they go on: “Government will not mandate suppliers at this stage, but will look at ways to spread best practice, and will track progress with a view to taking action if required at a later date.” Some commentators seem to believe that this adds up to a commitment. I’m no mathematician but when read this, in terms of commitment, it adds up to the square root of .. well, nothing! This statement of intent is typical politician speak that aims to placate the well informed who know something needs to be done and at the same time reassure the flat-earthers, fearful of change.

The electronic invoice goings on in Mexico have, understandably, attracted a great deal of attention. While nations like the US and the UK continue to sit on the fence, the Mexicans are setting the pace. But this isn’t just a matter for the Mexicans. And it’s not just Latin America that needs to keep a watchful eye on what’s going on as I realized when I spoke to Christian Lanng, CEO of Tradeshift and Steve Sprague, VP Product Marketing and Strategy for Invoiceware International. I spoke to Christian and Steve shortly after they announced a strategic alliance in May. The press releases that go out alongside these announcements are often dry and lacking detail so I was eager to hear what was so special about the Tradeshift and Invoiceware partnership and to get some insight from the people on the ground.

It was announced a few weeks ago that the Mexican Government has given businesses just 6 months to prepare for a major legislative change that will directly affect hundreds of thousands of small and medium sized businesses. And it’s not a trivial change. If businesses want to get paid for goods and services they supply, they’ll need to ensure that they generate invoices correctly and in accordance with the new rules. It’s not optional. There’ll be no excuses. It seems like a good idea to insist on the use of electronic invoices. It’s a mandate for common sense. The Mexican Government is embracing the digital age and at the same time implementing a zero tolerance approach to business taxes. But the rate of change they are imposing could create chaos as businesses fail to meet the deadline.

I’ve watched what Mexico is doing with great interest. The people behind the e-invoice mandate in Mexico are courageous and ambitious but they’re not the first to tackle such a challenge. Some time ago I chatted to Christian Lanng, CEO of Tradeshift, about his experience in Denmark and it struck me that there could be some interesting insights from his experience in developing the Danish mandated solution EasyTrade. So I asked him. To what extent, if any, I wondered, is Mexico treading in Denmark’s footsteps?

A major shift in the way P2P departments collaborate has been highlighted in a new survey conducted by Accounts Payable News and sponsored by Basware. The survey highlights the introduction of Heads of P2P, or Global Process Owners as a key driver of this change. Over 58% of departments now work closely together, resulting in increased organisational level recognition for Accounts Payable (A/P) departments. The survey found that collaboration levels were also enabled by an increase in the application of automation solutions and technology, with 43% now using einvoicing, a 6% rise over last year. Despite this, those operating in an almost entirely automated environment remain in the minority, with fewer than 11% of organisations doing so.

OB10 operation in the United States, OB10 have just posted record revenues in their financial year just closed. Figures for year ending April 30, 2013 show revenues generated from new buyer customers increased by 56% and the number of new suppliers on the network increased by 46% over the previous year. OB10 believe that the rise in new buyers and suppliers demonstrates that US corporations continue to seek efficiencies, streamline business processes, and improve their use of cash. That hardly surprising. We think that it's further evidence to support the view that e-invoicing is becoming embedded proven best practice in P2P.

Not announced formally and officially yet but it seems that the decree is written. Italy will introduce mandatory electronic invoicing in 2014. The formal announcement is expected soon. When Brazil and Mexico embarked on their compulsory electronic invoicing agenda, I was not alone in wondering whether their plans were a little too ambitious. A few years on and I still wonder whether they’re a bit too ambitious but if there’s one thing we’ve learned, those plans aren’t changing. Mandatory e-invoicing is embedded in Latin America and the authorities are demonstrating the resolve and tenacity required to drive this significant change through. And this is what comes to mind when I heard the news that Italy is now embarking on a plan to eliminate paper invoices in public sector by 2015. Is it too ambitious for Italy or is there too much at stake to let it fail?