BASF starts paperless billing in Europe – via Elemica
Elemica invoicing solution enables elimination of paper invoices.
23 November 2007 - Frankfurt (Germany), and Philadelphia (USA)
As of December, BASF will start removing paper from its European invoicing. The first phase of 50 customers is presently moving from paper to electronic bills using Elemica's electronic invoicing solution. The second phase of 500 customers is converting from paper starting in January 2008 and in later 2008 another several thousand customers will go electronic.
Additionally, in this first project phase BASF has enabled the receipt of invoices with an Elemica electronic signature that satisfies the EU Directive 2001/115/EC on electronic invoicing. Strategic BASF suppliers are being converted to Elemica invoicing and this program will be materially complete by mid 2008. BASF has been testing the Elemica invoicing solution since July. Elemica offers a complete electronic invoicing solution, which enables the elimination of paper invoices.
"This move will reduce costs at BASF, cutting out printing, postage, filing, and producing invoice reprints. In addition, Accounts Receivable will experience fewer calls related to invoice disputes and better Days Sales Outstanding performance", says Nicola Hughes, Elemica's Senior Vice President, Europe. BASF's customers will also gain from the company's adoption of Elemica electronic invoicing. "They reduce costs with no need to process mail, handle paper, scan documents, re-key data and operate paper archiving systems. "BASF customers will save up to €3 per invoice just on paper handling and automatic posting of invoices into the ERP offers even greater value," says Elemica Product Manager, Gary Neights. Other customer benefits include the ability to search for archived electronic invoices on-line and retrieve these instantly. Meanwhile, electronic signatures ensure full audit and tax assurance.
"Moving from paper to Elemica electronic invoicing is easy," states Ralf Kahre, Senior Manager Global eSolutions for BASF, "First, BASF set up a single connection to Elemica for all electronic invoices. Elemica then manages the programme. Each of BASF's customers is asked how they want to receive and to archive their electronic invoices. They have a range of options and can pick the one most suitable for their company. Elemica then supports the customers' conversion from paper to electronic".
"The value to BASF is that we standardize our processes, cut costs, and achieve faster invoice delivery for better DSO and DPO performance" continues Kahre. Elemica has the technology and program management experience to connect quickly to our customer and supplier base using very efficient fixed price projects."
Neights says, "Elemica sees ordering and invoicing as closely related. Companies using Elemica's Order Management solution can eliminate errors prior to the invoice being created. This ensures that sellers create accurate invoices that can be processed quickly by Accounts Payable." A recent benchmarking study showed that use of Elemica cut errors by over 75%. "This in turn ensures a higher ‘right first time invoice' rate," Elemica CEO Mike McGuigan adds. "Elemica's invoicing solution extends the value we can offer our clients even further into the financial settlement process."
ELEMICA, established by 22 leading companies is a leading global provider of solutions for physical and financial supply chain. With one connection to the Elemica Network, clients drive value through the automation of business with any trading partner. Elemica provides business process standardization and enabling corporations to lower their total cost of ownership of their ERP systems. Elemica is highly secure. Members can use existing hardware or software and Elemica supports numerous global data standards and custom formats. ELEMICA has connected more than 1800 companies across multiple industries and is processing over $60bn in annual spend.
