INTTRA Study: Shippers Cutting Costs through e-Invoicing

Press Release
Thursday, February 21, 2013

INTTRA released findings of a global study of high-volume shippers and freight forwarders that included 4 of the top 5 global logistics providers.

 

Four years of economic volatility have intensified pressure on carriers and shippers to seek new ways to reduce costs and have seen no relief on pressure to increase service levels. One cost reduction method that has demonstrated results across government and commercial sectors is electronic invoicing (e-Invoicing). Once referred to simply as a “best practice,” e-Invoicing is emerging as a cost reduction tool for companies in or those impacted by the struggling ocean shipping industry.

The 2012 global study found that:
 

 

  • 81% of respondents want to receive invoices electronically in 2013.
  • 77% rate “managing disputes” as their greatest invoicing challenge, with reducing the “time and cost to process invoices” as a close second at 68%.
  • The top 10 country e-Invoicing launch preferences for shippers include the United Kingdom, China, the Netherlands, United States, Germany, Singapore, Australia, France, Hong Kong and Italy.

"Invoicing, dispute resolution and payment processes are highly fragmented across the industry and represent a significant area of cost and inefficiency,” said Otto Schacht, Executive Vice President of Sea Logistics at Kuehne + Nagel, one of the world’s largest freight forwarders. “Logistics providers and their ocean carriers can benefit from standardizing the process, improving visibility to their cash liabilities and providing a more transparent invoicing process, all of which save time and resources."

The ocean shipping industry continues to face financial challenges including record high fuel costs, a reduction in traditional funding sources, decreasing global volume and excess capacity.  Manual payment processing results in wasteful costs for carriers and shippers on a daily basis, which can add up to millions of dollars annually: The European Commission Informal Task Force on e-Invoicing found that the average cost of processing a paper invoice in Europe was approximately €30 ($48). According to a Billentis 2012 E-Invoicing/E-Billing Report, switching to electronic invoicing yielded 50-80% cost savings.  For carriers that could mean a potential savings of $55-$88 for every Bill of Lading. 

Reduction of errors and disputes as a cost-cutting method remains the top driver of increased demand for e-Invoicing in 2013. Survey respondents readily agreed: 93% want to manage disputes electronically.   Today’s invoice error rates are estimated between 20-25% of all freight invoices. This results in delays and non-payment for carriers and drains time and resources for both parties who must work together to process and resolve these discrepancies.

“We are seeing a rapidly growing adoption and need for e-Invoicing in the ocean shipping industry,” said Rod Agona, Managing Director eInvoice at INTTRA. “It’s no secret that this sector is dealing with a tough economy – one that has likely forever changed. It has both carriers and shippers looking for ways to be more efficient and profitable, and e-Invoicing is a proven method to achieve those goals.”

www.inttra.com

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter February 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

SunEdison Restrained from 'Unusual' Asset Transfers

Solar company SunEdison Inc said a U.S. court has restrained the company from making any unusual asset transfers until a hearing in a lawsuit brought on by investors

Maersk to Scrap Ships at India's Alang Beaches, NGO Dismayed

Maersk Line said on Friday it had chosen four shipbreaking yards along India's Alang beaches to handle an increase in vessels that need to be scrapped, to the dismay

Teknotherm Marine Moves HVAC Arm to Bergen

Maritime heating, ventilation and air conditioning (HVAC) firm Teknotherm Marine has established a new subsidiary is established with the name Teknotherm Marine HVAC AS.

Technology

Sentinel Launches New Rudder Feedback Unit

Sentinel, a Beier Radio company, has designed and manufactured a new Rudder Feedback Unit (RFU) with many new features, including watertight components and connections

Innovative Equipment Will Help Unload Listing Ship

Following Smit Salvage’s salvage of the stricken ship Modern Express in the Gulf of Biscay, another Rotterdam company has now become involved in the rescue operations.

Sea IT, Veritas Tankers Ink Long-term Software Deal

Sea IT has entered a long term ICT agreement with Veritas Tankers. The agreement comprises installation of BlueCORE Generation 4, an ICT platform specifically developed for the marine industry,

Finance

SunEdison Restrained from 'Unusual' Asset Transfers

Solar company SunEdison Inc said a U.S. court has restrained the company from making any unusual asset transfers until a hearing in a lawsuit brought on by investors

Paragon Offshore to File for Bankruptcy

Paragon Offshore Plc said it will file for Chapter 11 bankruptcy on or before Feb. 14, becoming the first U.S. energy-related company to seek court protection from

Philippines Mulls Bilateral Sea Talks with China

The Philippines may consider two-way talks with China to resolve a territorial dispute in the South China Sea but only if it wins its case with Beijing at an arbitration tribunal in The Hague,

Logistics

Baltic Index Rises for First Time in 2016

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose for the first time this year on Friday, helped by higher rates for panamax vessels.

Philippines Mulls Bilateral Sea Talks with China

The Philippines may consider two-way talks with China to resolve a territorial dispute in the South China Sea but only if it wins its case with Beijing at an arbitration tribunal in The Hague,

Adani Ports Income Up by 15%

Adani Ports and Special Economic Zone Limited (“APSEZ”), India’s largest port developer and part of Adani Group, today announced the financial results for the quarter

Subsea Defense

Vietnam Gets Fifth Submarine from Russia

The fifth of the six Kilo-class submarines that Vietnam purchased from Russia has arrived at Cam Ranh Bay, Thanh Nien news reported.   The submarine, which was

US Contract for Next Generation Nuclear Sub Planning Program

The US Navy has awarded General Dynamics Electric Boat a $23.6 million contract to continue development work on the Ohio-class replacement nuclear submarine, General Dynamics said in a press release.

Australia Submarines: It is Japan vs. France

While Japan is confident it has proven itself the best contender to build Australia's new submarines, the French have moved to undermine Japan’s bid to build the navy’s new submarines.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Offshore Oil Port Authority Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1195 sec (8 req/sec)