High-street retailer House of Fraser has implemented new web-based invoicing software to encourage smaller suppliers to exchange orders electronically and eliminate paper processes.
The firm has moved from a traditional electronic data interchange (EDI) program to an online service to exchange purchase orders, advance shipping notes and invoices, and deploy a low-cost system suited to its hundreds of smaller suppliers.
Supply chain director Andrew Jayes says moving suppliers to e-invoicing is important for eliminating paper processing.
‘We would like to do away with paper invoicing completely because of the man hours and cost involved in processing this paperwork,’ he said.
The Online Trader software provided by Freeway Commerce requires no extra EDI translation or communications software. Suppliers sign onto the secure web site to download orders and invoices.
These are returned to House of Fraser electronically, which then integrates all messages with its back-office systems.
‘We have a number of small suppliers, so something that helps them to speed up processes benefits us as well,’ said Jayes.
Butler Group analyst Mark Blowers says including small suppliers is often a challenge when retailers turn to e-invoicing.
‘When businesses develop sophisticated systems there is a danger that it will exclude small suppliers,’ he said. ‘House of Fraser relies on smaller suppliers for much of its unique merchandise, and e-invoicing will reduce errors by capturing information at the source.’
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