Corporations Report Improvements in Working Capital Processes Through EIPP
Organisations are reporting better-than-expected improvements in their working capital processes through the use of electronic invoice presentment and payment (EIPP) solutions, according to a survey conducted by GTNews.com and sponsored by Citigroup Global Transaction Services. Thirty seven per cent of respondents said that process efficiency improved at a rate better than expected, while 32 per cent saw a positive impact on customer service levels. Twenty five per cent of respondents said that they experienced better than expected reductions in days sales outstanding (DSO) among those companies that had implemented an EIPP solution. Streamlining the accounts payable and receivable process was the key driver in adoption. ‘We see EIPP use growing among clients, especially in North America and Europe,’ said Maria Mandler, Managing Director and Global Head of EIPP for Citigroup Global Transaction Services. ‘In fact, clients are creatively using EIPP with invoice discounting and financing to decrease DSO and EIPP with netting is becoming a powerful global liquidity management tool,’ she added. However, barriers still remain to adoption and a lack of budget and/or internal sponsorship was cited by one quarter of respondents who had previously considered but rejected implementing an e-invoicing solution.