We’ve been talking quite a lot recently about what makes for a good supplier onboarding programme, because getting this right is essential to an eInvoicing intiative. What does a failed project look like? Quite simply, lower user adoption and participation rates.
And there are numerous examples of this in businesses worldwide, where a great vision of a connected buyer-supplier network and grand intentions, have turned into stuttering projects where suppliers simply fail to get on board. Don’t let that happen to your company!
These failed projects are really bad news, not just for your company and suppliers involved in the project, but in our view, for the wider economy. eInvoicing acts as the enabler for buyers and suppliers to transact much more freely, enabling cash to flow and hence, making businesses prosper.
What does good look like?
Setting up an eInvoicing project is a major undertaking. Naturally, businesses have plenty of questions on what they should aim for when it comes to adoption rates, onboarding strategies and go-live estimates.
Here are some benchmarks that you should be aiming for:
- How long will it take to go-live from contract signing? Four months, maximum
- How long is the onboarding process for suppliers? Three months to onboard suppliers
- What percentage of invited suppliers will enroll? At least 60%, and realistically, 70%+
- What percentage of existing networked suppliers will be migrated? At least 95%
Best-in-Class Performance - What does great look like?
Now that you know what good metrics are, here’s what great--the top performers in the industry--looks like. Innovative companies like Coca-Cola Bottling and PG&E have far exceeded the “good” benchmarks by eliminating and supplier fees for using the portal and enabling new trade opportunities like supplier financing.
· Within 6 months of signing had 85% of invited suppliers enrolled
· 90% of enrolled suppliers are actively using the portal
Fortune 500 US Utility
· Go live in three months
· Over 80% of all suppliers enrolled
· 99% of previously networked suppliers converted within 5 weeks
· Over 3,000 suppliers use the solution including eInvoicing, supplier portal and dynamic discounting
· $121m of discounts captured in three years 2011 - 2013
Major French manufacturer (in current go-live)
· 3,384 suppliers invited, 3,042 enrolled – 89.9% acceptance
· Supplier Feedback 100% positive
These top performers have at least one thing in common: they understand the value of offering to pay invoices early in exchange for a discount and know that for a program to be successful, it must be free for their suppliers.
Have a look at what our customers and suppliers say about us if you’d like to know more.