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 Reporter May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Matson Completes Horizon Lines Acquisition

Matson, Inc. has completed the acquisition of Horizon Lines, Inc. which includes Horizon's Alaska operations and the assumption of all non-Hawaii business liabilities.

Wärtsilä Acquires L-3 MSI

Wärtsilä completes acquisition of L-3 Marine Systems International    Wärtsilä Corporation announced that its acquisition of the Germany based L-3 Marine Systems

BWTS Newcomer Sees Early Success

Norwegian manufacturer of ballast water treatment systems MMC Green Technology reports it has sold more than 70 systems since going commercial with its MMC BWMS two years ago,

Technology

Kongsberg Contracted to Support FLNG Conversion

Kongsberg Maritime secures position in the LNG market with electrical and automation contract for Golar Hilli FLNG   Keppel Shipyard in Singapore and Black & Veatch in the U.

New Power Optimization Solution for LNG Carriers

NAPA and DSME launch tailored NAPA-DSME Power Solution for LNG carriers; leading LNG carrier shipyard offers specialized performance monitoring solution   South Korean shipbuilder,

Design & Operation: Wind Farm Support Vessels

Offshore wind farm development has been led globally by the UK, followed by Germany. Both countries have governments with long term commitments to renewable energy.

Finance

US Oil Contango Vanishing as Supply Glut Shifts Abroad

The U.S. oil market is on the brink of returning to a more bullish footing known as backwardation for the first time in six months, with the discount for prompt

Mexico Removes Bid Limit on Shallow Water Oil Tenders

Mexico's oil regulator on Friday voted to remove limits on how many blocks companies can bid on in the first 14 shallow water exploration contracts up for grabs later this summer.

Wärtsilä Acquires L-3 MSI

Wärtsilä completes acquisition of L-3 Marine Systems International    Wärtsilä Corporation announced that its acquisition of the Germany based L-3 Marine Systems

Logistics

Wage Row Between Argentine Crushers, Companies Reaches Crunch Point

Pressure grew on Friday for a resolution to wage talks between exporters and striking crushers in Argentina's Rosario grains hub, with another powerful union threatening

Crowley to Manage 4 Jones Act Ships for Pasha

Crowley Maritime Corp.’s ship management group has been awarded a new contract with Sunrise Operations LLC, a subsidiary of The Pasha Group, of San Rafael, Calif.

Matson Completes Horizon Lines Acquisition

Matson, Inc. has completed the acquisition of Horizon Lines, Inc. which includes Horizon's Alaska operations and the assumption of all non-Hawaii business liabilities.

Subsea Defense

Germany Looking to Dock Submarine Deal with India

The German Defense Minister Ursula von der Leyen is visiting India lobbying for the purchase of German Stealth Submarines and European military hardware, say local media.

Indian Navy Monitoring Activities of China

Amid increasing Chinese presence in the Indian Ocean region, Navy Chief Admiral R.K. Dhowan said that Indian Navy “minutely” monitors the activities of its Chinese counterpart in the region,

John Warner Successfully Completes Initial Sea Trials

A Virginia-class attack submarine named after former U.S. Sen. John Warner has successfully completed an initial round of sea trials,  reports UPI.   The U.S.

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Port Authority Salvage Shipbuilding / Vessel Construction 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: 0.3914 sec (3 req/sec)