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 September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

US Navy Orders Demonstration Craft from Willard Marine

Willard Marine, Inc. (WMI) announced it has been selected through a solicitation process to supply a demonstration model of a new, advanced combatant craft for the U.

Alu Design to Create Next Generation of Marine Chairs

There’s a new designer in the driving seat at Alu Design. Per Ivar Selvaag, the former Lead Designer at BMW Group and Chief Designer of Peugeot’s concept car division,

Pink Lashings Raise Money for Breast Cancer Research

As the first Peters & May Pink Lashings shipment leaves Palma for Fort Lauderdale, the global marine transport company is calling all yacht owners to support its campaign to help raise £25,

Technology

Alu Design to Create Next Generation of Marine Chairs

There’s a new designer in the driving seat at Alu Design. Per Ivar Selvaag, the former Lead Designer at BMW Group and Chief Designer of Peugeot’s concept car division,

New Dual Use Piracy Barrier Launched

Guardian Maritime launched Guardian Greenwater, a new product that was developed to deal with the issue of greenwater on-board deck following turbulent weather conditions,

Australia Join Operation RENDER SAFE

Australian Defence Force (ADF) personnel have arrived in Bougainville to address a potentially deadly legacy posed by unexploded ordnance from past conflicts as part of Operation RENDER SAFE 2014.

Finance

Gulf Craft to Invest $100m in Dubai Shipyard

Company plans to invest $100 million over the next five years in the development of a new shipyard in Dubai Maritime City to build a global luxury yachts manufacturing

Pentair Reports 3Q 2014 Sales of $1.8 bi

Pentair plc today announced third quarter 2014 sales of $1.8 billion. Sales were up 3 percent compared to sales for the same period last year. Third quarter 2014

FortisBC Starts Expansion of Tilbury LNG Facility

FortisBC – a subsidiary of Fortis Inc. has officially started construction of its $400 million Tilbury LNG Facility expansion project today. The company is adding 1.

Logistics

Long Beach Cargo Continues to Climb

Cargo container traffic rose 7.3 percent in September at the Port of Long Beach compared to the same month last year, making for the Southern California seaport’s busiest September since 2007,

Continership Alliance Expands to US Trades

The CKYHE Alliance (COSCO, "K" LINE, Yang Ming, Hanjin Shipping, and Evergreen Line) has announced they will expand their cooperation scope to U.S. Trades and CKYHE

New Intermodal Rail Service from PortMiami

Florida East Coast Railway (FECR) and PortMiami, through a strategic alliance, are offering the Sunshine Gateway service, which includes on-dock intermodal rail capabilities.

 
 
Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1641 sec (6 req/sec)