Quarkside

24/11/2011

Quick Win #1: E-invoicing

Filed under: Innovation,Local Government — lenand @ 11:55 am
Tags: , ,

Who would ignore the chance of saving tens of £ thousands year on year, with a project that typically pays for itself within a year? Answer, practically every local authority. An exception is the London Borough of Hammersmith & Fulham, whose case study shows that ….

  • Annually they process 140,000 paper invoices from 8,500 suppliers.
  • Six figure cost savings are achievable by removing manual tasks and inefficient paper chasing.
  • Big, standardised suppliers can be enrolled easily, before targeting SME suppliers.
  • Reducing the amount of paper and associated storage is more environmentally friendly.

And that is just on the purchaser side of the equation. Suppliers experience quicker payment, better cash flow, opportunity for seed finance, VAT approved paperless invoices.  It could be worth £1 billion to the UK economy.

Even though there are well-established services available, local authorities treat E-invoicing as innovation. They have no appetite for minimal risk innovation. The reason must be Resistance to change (R) being too high. Remember the Change Equation?

Unless R < (D x V x F), then change will not take place. 

Dissatisfaction (D) with the status quo would appear to be low, as is the Vision (V) for the improved future. The practical First Step (F) is so easily demonstrated. Payments administrators are not going agitate for e-invoicing when their precious jobs are likely to be at stake. This means that we need more Vision (V) from leadership. Are professional organisations like CIPFA and SOCITM active enough in promoting e-invoicing? Possibly not.

The benefits of e-invoicing were expounded at a meeting of the Conservative Technology Forum, who hosted representatives of the UK e-Invoicing Advisory Group. An excellent topic, but a poor turnout by people who should be providing the Vision to improve administrative efficiency. As a Quick Win, it’s a No Brainer.

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1 Comment »

  1. Very nice post I like this Article…

    Comment by e Invoicing — 13/02/2012 @ 10:29 am | Reply


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