EIPP market can be split into four segments, these being: supplier-centric (sending invoices electronically from A/R systems), buyer-centric (receiving invoices electronically into A/P systems), enterprise-centric(sending and receiving invoices electronically from/into A/R and A/P systems – a customised solution usually based on ERP solution) and exchanges.

The first three types generally cater for one party, usually the dominant player to the cost of its trading partners. They also provide partial solutions, which limits benefits that could be gained by parties involved in a transaction. The enterprise (and DIY) solutions are costly due to underlying ERP solutions and high consultancy fees usually charged by system integrators (including VARs, management consultancies, etc).

Exchanges have emerged over the last six years. Some of early exchanges have become supplier networks catering predominantly larger purchasers, e.g. Ariba. Some are industry specific and caters for large buyers and tier 1 suppliers (e.g. Exostar for A&D industry and Covisint for Automotive industry). Some have become e-procurement platforms used by large retailers, e.g. Marrakech.

However, a number of true non sector based exchanges have emerged that cater for both end of a transaction (i.e. buyer and purchaser) equally irrespective of their size or geographically, i.e. they offer the same functionality to both parties. ebdex Document Exchange is such an EIPP solution. I truly believe that success of such a solution lie when they can be offered to both large and small companies, where both party’sgain substantial benefits, be they reducing of debtor days, early payment discounts, corporate governance, upto date information for sound decision making or improving trading partner relationships.

Do you use an e-invoicing solution? Is your solution simply based on sending an invoice via e-mail? Have you thought of what happens when this e-mail or e-mail attachment is received by the recipient? Unless the same system format is used by both the sending party and the receiving party, the invoice information cannot be easily interpreted by the receiving party’s accounting/ERP system.

This results in recieving party having to re-key invoice data manually into the A/P system, duplication of effort leads to potential re-keying errors and delays. This method whilst may include buzz words like “e-invoicing” has no clear advantage than sending by post or fax other than in reducing the delivery time. Sage’s Transaction E-mail as mentioned earlier is such a solution. It works well if both ends have compatible Sage systems.

Where as e-invoicing or EIPP systems that integrate tightly with accounts/ERP systems allow invoice data to flow from the sending party’s A/R system to receiving party’s A/P system without having to re-enter the invoice data. These systems can add significant benefit to both parties. E.g. headcount reduction.