American Express takes step to transform payment process
By Susan Avery -- Purchasing, 3/12/2007 2:27:00 PM
American Express has introduced S2S eInvoice&Pay, an integrated electronic invoice presentment and payment (EIPP) system. With S2S eInvoice&Pay, companies can process 100% of their invoices, and issue payments to their suppliers from a single online portal managed by American Express.
American Express launched the new product in response to customer demand for more efficiency and savings in their companies’ accounts payables systems, says Gordon Smith, president of American Express Global Commercial Card in New York. “Many of our clients are looking for an automated and efficient way to handle invoices and manage payments to suppliers,” he says. “Having taken steps to move their ordering online, these companies now realize that they are still mired in paperwork on the back end; routing paper invoices and sending paper checks. They are turning to us to help take the next big step in transforming their payment process.”
Research by Celent, LLC, in Boston, shows U.S. business-to-business transactions amount to some $36 trillion annually, with 73% of those transactions still paid by check. Celent also estimates that automation can reduce invoice-processing costs for buyers by as much as 92%, while electronic settlement can slash payment costs by up to 86%.
Kennametal Inc. has adopted e-invoicing and payment for its North American suppliers and has realized such benefits as lower processing costs (by two-thirds), lower payment costs (by converting 58% of suppliers to e-payment) and increased speed of pay to suppliers by 30%. Kennametal uses technology from Harbor Payments, which American Express acquired last December.
Suppliers can also benefit by gaining greater visibility into the buyer approval process, and lowering billing costs with online inquiries and dispute resolution.
Some features of S2S eInvoice&Pay are:
·E-capture of 100% of invoices.
·Straight-through e-processing from PO to payment for users of e-procurement and the American Express Corporate Purchasing Card.
·An e-invoice-enabled supplier network.
·Reduce invoice exceptions and faster pay via automated review and dispute resolution.
·Multiple payment options.
·Compatibility with all ERP systems, plus advanced SAP connectivity.
American Express says that S2S eInvoice&Pay is the first in a suite of products to help companies “optimize their supply chain from source to settle.” In the coming months, the company is expected to unveil other products in the S2S product suite, addressing the areas of sourcing and ordering.
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