Pioneering Samsung project proves e-Invoicing is a winner in more ways than one

If anyone was still in doubt as to the potential value of e-Invoicing, they need only look at what has been happening at Samsung SDS Europe (SDSE) – the IT service and e-Business provider to Samsung Electronics and other businesses across the European region.

“Since developing and implementing an e-Invoicing service based on Adobe solutions, Samsung has seen the cost of processing inbound and outbound invoices drop significantly.”

Since developing and implementing an e-Invoicing service based on Adobe solutions, Samsung has seen the cost of processing inbound and outbound invoices drop significantly. The number of Days Sales Outstanding (DSO) has also been reduced, while invoice dispute resolution time has fallen sharply.

This return on investment has also been quick. Samsung SDSE Business Development Director Paul Le Messurier says the gains are set to keep on coming, "In less than two years, e-Invoicing will account for a multi-million euro reduction in invoice-related costs," he explains.

Just how have such gains been made possible in such a short space of time? To understand, it is instructive to look at what the situation was like before. As with many multinational companies, Samsung used paper-based invoicing processes - and partial electronic methods - that were inefficient and costly. A large amount of employee resources were also necessary to handle inbound and outbound invoicing, at times taking months from outset to completion of each transaction.

Inefficiencies also caused delays in receiving or issuing payments, with manual invoicing processes affecting the company's operations. At the same time, if payment disputes did arise, paper-based processes made it challenging to reconcile payments against inventory shipped, and received, on an everyday basis.

Introducing e-Invoicing

To overcome these inefficiencies, Samsung SDSE selected Adobe LiveCycle ES modules to develop and deploy a scalable, intuitive e-Invoicing service that bridges internal and external business processes for both accounts payable and accounts receivable, while also helping to guarantee authenticity of the electronic documents.

"Inbound vendor invoices can be received electronically in a number of formats and interfaced automatically into Samsung's accounting system," says Le Messurier. "For outbound invoices, when we receive an order and ship the product to a customer, an invoice is electronically generated and transmitted to the customer". Trading partners can log into a rich Internet application to manage and reconcile invoices and can also use the online system to easily determine the value of outstanding orders.

Another important benefit of the system is the ability to easily track and store electronic invoices, addressing regulatory requirements to manage invoices and archive them for the required period. "Adobe LiveCycle ES makes it easy for us to generate accounting reports for government regulators," adds Le Messurier.

Significantly, the e-Invoicing service will also help Samsung meet its wider corporate responsibility targets and green initiatives. "There is no doubt that e-Invoicing is also reducing our corporate carbon footprint," says Le Messurier. "By automating the invoicing process, we are showing how e-Invoicing improves efficiency and reduces costs, meets government regulations and significantly contributes to more sustainable operations."

e-Invoicing - delivered by Samsung SDS Europe as a service

The Samsung e-Invoicing solution built on Adobe LiveCycle ES has realised so many business benefits for the organisation that it received a 'Best Practice' award at Samsung's 2010 global accounting symposium. Building on this success, Samsung SDS Europe is now offering the service to other, non-Samsung businesses across the EMEA region.

To learn more about the e-Invoicing solution used by Samsung, how Adobe LiveCycle ES can help your organisation or to request a whitepaper, contact Prelini Udayan Chiechi, Senior Manager, Enterprise Marketing at Adobe Systems Europe Ltd: pchiechi@adobe.com