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Electronic invoices without inhibitions

Ifco Systems generates, sends and archives more than 15,000 invoices, credit notes and reminders in over 20 languages every month. The logistics company decided to generate and send mainly electronic invoices centrally in the future. An accounts receivable solution in the cloud model is used for this.
Dr. Rafael Arto-Haumacher, Esker
July 2, 2015
2015
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This text has been automatically translated from German to English.

Ifco Systems operates a global pool of more than 200 million reusable returnable containers used primarily to transport fresh produce from producers to food retailers.

With more than 50 locations in 34 countries, approximately 1,200 employees generated $895.8 million in sales in 2014. Ifco serves more than 150 food retailers and approximately 9200 producers worldwide.

This makes the company the world's leading supplier of reusable packaging solutions.

Requirements

The goal for Ifco was to reduce the time-consuming and cost-intensive printing and mailing of paper invoices in the national companies and to generate and send predominantly electronic invoices as centrally as possible in the future.

Since some countries still require signatures and invoice printing should be outsourced where necessary, the decision was made to use Esker's Accounts Receivable solution, which does not require its own infrastructure and operations because it is run in the cloud model by the service provider.

There should also be an interface to the SAP system to ensure smooth exchange between SAP and the Esker application.

The solution

With the Accounts Receivable solution, it is possible to generate and send invoices according to the requirements of the invoice recipient: electronically - with or without a signature -, in paper form through print centers distributed worldwide, or by depositing them in an invoice portal to which Ifco's customers have access.

For this purpose, the invoices are generated in the logistics company's SAP system, transferred to the on-demand platform and automatically processed there.

Customers can set a preference in the platform's portal for the format and method in which they want to receive their invoices.

Five weeks after the project was launched by a joint meeting at Ifco in Pullach, Go-Live Phase I started with successful implementation in Spain, France, Portugal and the UK.

Six months later, another ten European subsidiaries - including Germany, Belgium, the Netherlands and Switzerland - were able to send and archive their invoices on demand. In the meantime, the USA has also been integrated into the use of the solution.

The implementation

The project was implemented directly at the headquarters in Pullach. Ifco Systems was to take responsibility for the entire invoicing process and, within three months, create the invoices for various national companies and transfer them to the on-demand platform for dispatch and archiving.

Outlook: Continuous improvement

Billing for more than 20 countries should function without any problems, according to the requirement. Regardless of the language, the electronic invoices had to be generated, sent and archived in compliance with the respective country-specific legal requirements.

This is where the cloud solution comes in with its modular on-demand platform. The solution first interprets which national company the invoice comes from (country, language) and to which country the invoice should be sent.

To do this, Ifco sends an invoice as a PDF document via an e-mail server to the on-demand platform and analyzes it using capturing technology.

The sender is clearly identified by means of a four-digit identification number coded in SAP. This determines the country from which the invoice originates and the country to which it must be sent.

This process ensures, for example, that the invoice receives a signature - if required - and that the correct language is automatically selected for the accompanying e-mail to the recipient.

Web portal makes billing transparent

Another advantage of the solution is its convenient web portal. Via a secure Internet connection, authorized employees of both the sending and the receiving company can track the invoices at any time or call them up on the screen.

In addition, Ifco offers its customers, the invoice recipients, the service of electronic archiving of their invoices over the legally required retention periods (in Europe mostly eleven years) with the solution.

With the web portal, they have the option of retrieving their invoices at any time according to specific search criteria. This also removes another barrier for customers to accept electronic invoices.

Because he has control over his invoices at all times, without having to do extra work through his own time-consuming electronic archiving.

Welcome mail

In addition, the web portal facilitates the switch to receiving electronic invoices. Each invoice recipient receives a confirmation e-mail with all access data at the beginning of the business relationship.

This so-called welcome mail replaces the otherwise usual complicated process of the respective individual declaration of consent for electronic invoicing.

With an e-billing process that is so accepted by customers, it will be possible for Ifco to further increase the volume of electronic invoices and thus not only save costs, but further optimize turnaround times until payment.

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Dr. Rafael Arto-Haumacher, Esker

Dr. Rafael Arto-Haumacher is head of the German branch of Esker


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