The global manufacturing industry has been on a roller coaster ride over the past few years and following significant investment in new plants in the Far East, attention is now turning to establishing new plants in Latin America and Mexico. Brazil and Mexico are receiving a high proportion of inward investment at the moment, particularly from manufacturers in the automotive and high tech industry sectors.
In addition to establishing new production lines, on-boarding new trading partners and extending ICT infrastructures to support the new operations, manufacturers need to adhere to local business rules and compliance processes. One such process is e-Invoicing, an initiative which aims to remove paper from today’s supply chains and at the same time automate the order to cash process to allow suppliers to be able to get paid more quickly.
For example a North American manufacturer may be looking to set up operations in the European Union, a region with 27 different VAT rules, 27 digital signature rules and 27 different archiving rules. Every EU country processes e-Invoices in a different way and any company looking to establish a presence in any one of the 27 member countries needs to address this issue before they can exchange e-Invoices seamlessly with their trading partners. The situation is the same for a European or Japanese company looking to setup a presence in Brazil or Mexico, they will need to adhere to recently introduced, government backed, e-Invoicing regulations before they can exchange invoices with trading partners in the region.
For many companies, implementing an e-Invoicing strategy can appear to be a daunting challenge but it needs to be addressed. It is all very well establishing a cloud based B2B platform to manage day to day interactions with trading partners but unless the e-Invoicing process is embraced then full automation of a supply chain will never be achieved. Each e-Invoicing implementation will have to cater for a diverse range of users, for example IT staff, admin payments/accounting staff and of course tax auditors.
Each group of users will have varying levels of IT understanding and so it is important that users are shielded from the complexities of using such systems. For this reason many e-Invoicing solutions in Europe are delivered as a service to ensure that the system is deployed quickly and smoothly so that tangible benefits can be realised in a short space of time.
How do manufacturers adhere to the various e-invoicing regulations established by regional governments in Europe, Latin America and Mexico?
To try and address these questions, I worked with a colleague, Nigel Taylor, Director of Marketing and Head of e-Invoicing Solutions at GXS to prepare an ‘On Demand’ webinar which answers many of the above questions. To view the webinar simply click HERE.
GXS has also set up a dedicated website to answer any potential questions you may have on e-Invoicing. Please visit http://www.einvoicingbasics.co.uk for further information. Alternatively if you would like to learn more about GXS e-Invoicing solutions then please click HERE