Supplier onboarding is the main barrier to e-invoicing adoption

The main barrier to companies adopting e-invoicing is the lack of supplier onboarding capabilities, according to a poll run by sharedserviceslink.com.

During a webinar on the benefits of using an open network for e-invoicing, run by sharedserviceslink.com and Basware, a provider of purchase-to-pay solutions, attendees responded to the question, ‘what is the main barrier to increasing the number of invoices received?’

From the respondents, 29% said the lack of supplier onboarding capabilities was the main obstacle. Concerns about the cost to suppliers (24%) and VAT regulations (19%) were the next most prevalent challenges.

Commenting on the poll, Quentin West said, “Supplier on-boarding often falls short of expectations for two key reasons:  the cost to the supplier and the limited reach of closed networks.

“Closed networks act as independent silos, which may mean suppliers have to form multiple contracts to reach their customer base.  Suppliers are resistant to demands from buyers to align themselves to a network the buyer has chosen – especially if the supplier already has a relationship with another provider.
 
An open network does not require the supplier or buyer to be connected to the same service provider, which results in choice, controlled costs and increased levels of supplier on-boarding.”

Susie West, CEO of sharedserviceslink.com  agrees that supplier onboarding is key e-invoicing projects to succeed. “If a company has this capability in house, great.  But nine times out of ten it doesn’t. When choosing a service provider, it is crucial to ensure that it has the ability to onboard suppliers for you.”