An Electronic Invoicing Maturity Model: P2P, Data and Systems Linkages (Part 2)

Please click here for the first post in this series.

At the Level 2 or "intermediate" electronic invoicing maturity level for P2P, data and systems linkages, we begin to see broader vendor file management and even MDM approaches applied to improving supplier and system data integrity. At this stage, an organization would likely have a reasonable means, for example, to contact over 75% of its suppliers within 7-10 business days to formally notify them of changes in payment terms (via current email, fax, mail addresses and contacts).

At "advanced" or Level 3 maturity, organizations begin to drive sophisticated integration use cases built upon new ways of capturing value from transactional data interchange between buyers and suppliers, including but not always limited to invoice data. An example here might include 0% tolerance of multiple payments. Perhaps most important at Level 3 in terms of P2P, data and systems linkage, data quality is always targeted at the source, rather than as an afterthought.

For this reason, we often see Level 3 organizations place an equal emphasis both on the e-invoicing program itself plus broader supplier/vendor management programs to keep all relevant supplier details, starting with accurate and timely up-front onboarding. The same organization that could achieve a 75% correspondence contact rate at Level 2 maturity (within 7-10 days) would likely see a 98%+ rate at Level 3, at least for current (i.e., past 12 month) suppliers.

Organizations that move up the maturity curve for e-invoicing will often find corresponding maturity and improvements across vendor and supplier management programs. For example, at higher stages of e-invoicing maturity, it becomes easier to implement and manage supply chain risk management and supplier performance management initiatives as well. After all, so much of program success in both areas is about increased visibility to current data and knowing precisely who you are doing business with.

For more on P2P, check out our latest free Compass research in the area:

A Foundational Look at P2P Technologies

E-Invoicing Comes of Age - Discovering What's Possible From the Latest Electronic Invoicing / Invoice Automation Capabilities

Jason Busch

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