Electronic Invoicing

Purchase to Pay can sometimes be a hard sell. In a highly siloed organization where purchasing and finance see themselves as different species, getting buy in to an end to end holistic approach to purchasing is virtually impossible. But without the holistic approach some serious stuff goes wrong. Below are to top 5 problems that occur when purchase to pay best practice is ignored.

Purchase to Pay, P2P and Dynamic DiscountingIt takes several iterations of a good idea and a bit of sex appeal before it catches on. The iPhone wasn’t the first multifunctional device – it was just the first on the market to package everything up into an object of desire. I clearly recall explaining to a friend: “The camera is inferior, it doesn’t have Flash and the battery life is useless. But just look at it. I don’t care if it doesn’t work – I want one!” There’s a kind of mysterious synergy – the sum of the parts don’t add up to much but somehow, the whole is huge. It’s the same with some business and technology innovations. And in the invoicing space, it’s beginning to have a remarkable effect.

Purchase to Pay, P2P and Dynamic DiscountingI read with interest an item by Jean-Pierre Foehn (Opening the supplier can of worms: can you really charge suppliers a fee to do electronic transactions?) that expressed, not for the first time, some fairly frank questions about electronic invoicing and the justification for transaction fees. The questions he raises are not new but it is good to see them  brought out into the open.