Here are the top 4 benefits for joining PEPPOL as an e-invoicing service provider:

1. PEPPOL is a service provider roaming framework: Forget about the horrible acronym. The core of PEPPOL is in essence a framework for roaming between service provider. It’s for both public sector e-invoicing and for private sector e-invoicing – there is no discrimination, but public sector is a big driver with private service providers connecting buyers and suppliers.
2. One multilateral contract: One contract with a regional authority is enough. No more need for bilateral agreements between service providers.
3. Trust and security: PEPPOL is based on a digital certificate based trust and security model. You are guaranteed to only receive e-invoices from other trusted service providers.
4. PEPPOL has traction: France has connected all state institutions to PEPPOL via Chorus (an ambitious state-wide SAP project). The European Commission accepts e-invoices from PEPPOL via ePrior (used by DIGIT). More than 40.000 public sector buying endpoints in Norway and Denmark can receive invoices via PEPPOL. More than 30 service providers are either in operation or in process with connecting to PEPPOL.

Does any of this resonate in your organization? Come to Rome this spring to the annual PEPPOL conference and join the OpenPEPPOL eDelivery Forum  on LinkedIn. Do you want to influence the development of standards behind the PEPPOL infrastructure then join the OASIS Business Document Exchange TC or CEN BII if you wish to influence business processes and the PEPPOL subset of UBL. Join OASIS Universal Business Language TC if you wish to influence the fastest growing global e-invoicing standard.

Disclaimer: PEPPOL also support several other business documents and business processes from the CEN BII framework.

We are now offering other service providers a free PEPPOL test-endpoint with Tradeshift.

1. Simply go to http://tradeshift.com/peppol and create you own free account.
2. Register a GLN that you wish to use as e-invoice address on the settings-page for your test account.
3. Activate the “PEPPOL Access” app in the Apps marketplace.
4. Start sending and receiving e-invoices with your own Access Point

This offer is a strictly a “self service” no support offer. Please observe that we reject e-invoices received without proper signing with a PEPPOL-issued certificate and that all invoices must be valid in accordance with CEN BII profile 4.

Successful testing to everyone

Today we take it for granted that we can bring our mobile phones with us when we travel to other countries. We don’t need different phones when we cross borders and the phones are interoperable even if they are made by different manufacturers. Service providers have organized themselves and put in place roaming agreements so that we don’t have to worry about underlying complexity.

The mobile phone example is one where, today, borders really don’t exist. The system works well, but the road towards interoperability was long and rocky. Long story, short – real interoperability in the European market was not achieved until the European Commission sanctioned the GSM standard as the common one to be used across Europe. This boosted the mobile phone industry in Europe and gave the European mobile technology industry several years head-start compared to its north American rivals.

So what about e-invoicing?

The level of interoperability that we take for granted in mobile telephony is only in its infancy when it comes to electronic invoicing. To continue the analogy, many invoicing service providers resist the change from a closed network model where you ‘need different phones’ in order to ‘speak’ to buyers in different countries.

These service providers claim they are open to working with others that meet their standards of security, archiving and compliance. But, in reality, this is all for show. And it’s a model that doesn’t scale. There are more than 500 e-invoicing service providers in Europe alone. Imagine if they all had to make bilateral agreements with each other. We wouldn’t get anywhere very quickly!

The current majority of players in the market are antiquated dinosaurs trying to protect closed networks and outdated business models. Their suggested solution is from another age and doesn’t scale to tackle the problem of global e-invoicing.

The industry must change its business model and make a shift to new technologies and revenue sources.

Tradeshift has always been a proponent of open standards and open infrastructures. The founders of Tradeshift were behind an initiative to break the monopoly of traditional EDI-based service providers in Denmark back in 2007 and launched the world’s first truly open, free and standards-based e-invoicing infrastructure. When launched, 70,000 companies joined the EasyTrade infrastructure in just 10 months and it is now used to exchange more than 15 million invoices between more than 200,000 legal entities every year.

The success of EasyTrade gave the Tradeshift founders a leading role in helping to build the pan-European infrastructure behind PEPPOL. In 2008, I became the Technical Director for PEPPOL and was responsible for designing the infrastructure in close collaboration with IT architects from several countries across the world.

In addition, Tradeshift CTO Gert Sylvest, was the technical mastermind that led the development work of open source components and registry services. PEPPOL is now in operation in more than 12 European member states and countries like Norway have adopted PEPPOL as their internal e-invoicing infrastructure.

Tradeshift offers free access to send and receive e-invoices via PEPPOL to all companies and public sector institutions connected on our platform.

It’s only in being more open and collaborative that we will reach the levels of interoperability that will really make a difference. And it’s something that we all stand to benefit from.

That might sound like a really dumb question, but stick with me! What are the underlying reasons for you beginning this search? While e-invoicing represents a key part of your quest, if you think about it logically, the e-invoicing process is just one example of the many interactions you’ll have with suppliers on a regular basis.

Wouldn’t it be great if you had one centralised platform where you could centrally manage every interaction? From day-to-day contact and contracts, to updates and purchase orders.

In the future, it is not hard to see how this could go even further, with this platform becoming the key hub of your entire collaboration with all the businesses that you work with. This idea really isn’t all that far fetched. At Tradeshift, our open APIs (which we have talked about before) already allow companies to add any functionality they think might be useful.

Once you have suppliers onboard, it makes perfect sense to leverage the platform to manage all interactions they have with your company.

It’s worth repeating: think about the value that your e-invoicing platform may be able to provide to departments beyond just the “accounts payable” team.

Consider how you can leverage the value of relationships with other companies and change the way you do business – your e-invoicing tool is potentially the backbone to all of this.

The culmination of your search for the perfect e-invoicing solution might not be the end, it might just be the beginning…

RFP TIP: Don’t make your selection criteria too narrow. Flexibility should reward the best all-round tool for your business.

Join us to discuss the new business models driving efficiencies across finance, and the reasons why many CFOs are realizing significant value from moving their applications into the cloud.

Over breakfast we’ll be discussing:

• Evolving business models: the impact of “free forever” supplier invoicing and the increasing traction of instant payment services
• Supplier activation: improving business relations and enhancing effective buying
• The network effect: new social communications in the supply chain, the move to the cloud and what it means for your business

Exclusive research uncovered

We’ll also be launching the results of an independent global CFO survey into emerging finance and procurement trends.

It will uncover changing attitudes to e-invoicing, supplier activation strategies and a growing enthusiasm to adopt new cloud-based practices to add more value and reduce costs in today’s uncertain economic climate.

Join us at one of our “CFO in the cloud” breakfast briefings across Europe and North America during March and April. Find your nearest city by visiting tradeshift.com/worldtour

Would it be the success it is today?

Using a developer ecosystem to extend the value proposition of a core offering is nothing new. Just think of Windows versus the Mac many years ago. Without software, the Mac started to fall behind – a closed ecosystem that doesn’t make it easy for people to explore new functionality is always at a huge disadvantage.

All this goes to show that, when selecting technology, it’s always a good idea to favour platforms that are open and encourage third-party expansion. And e-invoicing is no different.

Platforms with potential

Businesses are complicated entities. The connections you make with suppliers will range from the commonplace – such as invoicing and POs – to the specific. And invoicing is just one of the many ways in which you interact with the businesses you work with.

Do the e-invoicing platforms you are looking at make the most of this potential? Furthermore, does it actually let you turn off any of the advanced functions and add-ons that you may not be interested in using. How does it let you tailor the experience to create the most useful and effective tool for what you need to get done?

If the platform allows anyone to create new functions or apps, then that will enable you to build your own bespoke functionality. No two businesses are the same, remember, so bespoke will really work to your advantage.

Apps that extend the platform make the difference between a system you log into to perform one task and a vital piece of your business that continues to offer new value, options and solutions for your workflow. Think of it as an investment in the future of your business versus simply ticking a box for the present.

The power to integrate

Another key consideration of an open platform is the ability to integrate with other existing legacy systems or processes. This is hard to over-emphasise as you will know if you’ve ever come up against the challenge of getting separate systems and processes in your infrastructure working in sync.

As the saying goes, “if you build it, they will come.” But, here at Tradeshift, we think that’s only half the story. After all, when you’re talking about Software-as-a-Service (Saas) and cloud-hosted e-invoicing solutions, are you really ever finished?

Businesses wait for no one, and why should they?

We sure haven’t…

RFP TIP: E-invoicing can either be the end of the story or the beginning – look for a platform that has the potential to be tweaked to offer extra functionality.

Life is tough for small businesses at the moment, with the economy putting strain on even the most successful companies out there.

One of the stories we hear frequently when speaking to small businesses across the world is the impact of unpaid or late invoices. So we decided something had to be done.

That’s why today we’ve released the Getting Paid report, which you can download here. It lifts the kimono on what we see as being the very real unpaid invoice crisis that is having a damning effect on UK small businesses.

13% of invoices unpaid

We surveyed 100 financial directors and business owners from small businesses based in the UK and asked them a series of questions about invoicing and the impact it has on their business.

We found that 13% of invoices issued by UK small businesses remain unpaid every year. At a time when life is tough for many small businesses, just under a third (30%) said cash flow issues caused by unpaid invoices could force them to lay off staff, while 20% said they would have to turn down business or take out a loan.

When asked about the reasons for non-payment of invoices, 34% put slow payers at the top of the list, followed by companies going out of business (24%), disputes over work (19%), cashflow problems (11%) and administration (9%).

The report contains the full results of the survey and also best practice advice for small businesses looking to reduce the burden of unpaid invoices. We’d love to hear your thoughts on the research.

Also have a look at the interesting infographic that our designers crafted, based on the reports data.

But what difference does “the cloud” actually make and how should it affect your choice of e-invoicing solution?

When it comes to creating the perfect e-invoicing RFP, you’ll need to make sure you understand the advantages and disadvantages of a hosted or on-premise solution and how it may change the way you run this vital business function.

For example, deployment. Do you fancy the sound of rolling out hardware to handle your e-invoicing and facing the cost, stress and potential pitfalls of another technical mouth to feed?

What about the Cloud route of pressing a button and you’re good to go? Oh, you’re a large enterprise? Well rather than spending hundreds of hours getting servers running properly, why don’t you spend that time with a team that can get you set up and help you bring suppliers on board instantly?

What about the on-site upgrade costs a few years down the line when the software is starting to lag and performance isn’t what it used to be? Sure, you could put up with it. But why bother when a cloud solution means you’ll be updated on a far more regular schedule without paying a penny more?

Why host the ghost of the cloud?

“Ah,” I hear you say, “but I can have the best of both worlds by simply going with an on-site solution that is actually hosted in the cloud!”

But unfortunately, it’s not that simple. Take these systems, dump them in the cloud and you’re really just removing one of the pitfalls – the hardware. In reality, an e-invoicing solution that fully accommodates the cloud goes far beyond this, and importantly, has the most potential too.

Any on-premise system that is hosted in the cloud ignores all the design opportunities that the cloud enables. If you actually build these systems to take advantage of the cloud, then you open a door to whole new degrees of opportunity.

For example, integrating your e-invoicing system with the entire network instead of just one of many portals. It means ideas like new functions and features being added, at no extra cost, all year round. And without you having to go through any upgrade processes or waiting for releases and bug fixes.

Cloud is not just about where you host the equipment – it’s so important to your RFP because it says so much about the providers being scrutinised. You’d expect us to say, of course, but any provider who has built their solution with the cloud in mind is always going to provide a better end product.

So if you’re going to start a meaningful relationship with a new e-invoicing supplier, the choice is yours – stay with on-site solutions or take to the clouds with something more modern…

RFP TIP: Be aware of the potential consequences of each option. Will you need IT resource to maintain the system on-site? Will you be missing out on upgrades to cloud products that can be rolled out instantly.

The facts

Full name: Levin Bunz
Job title: Marketing Analyst
Employee no.: 24
Employed since: Dec 2010

Meet Levin Bunz, Marketing Analyst at Tradeshift. Levin is from Bodensee in Southern Germany, but his search for a job in an exciting startup took him to Tradeshift in Copenhagen. He is already considered one of the seasoned guys at Tradeshift having been here since December 2010. He has also adapted well to the Copenhagen way of life. This means he rides his bike to work every morning – like everyone else seems to do in what is called the most bicycle-friendly city in the world.

Levin is responsible for feeding the rest of Tradeshift with insights based on data research. He is also executing campaigns, working on SEO, and is generally involved in marketing related activities. His analysis weapon of choice is Google Analytics and he is the go-to-guy for the latest stats.
 
You can expect to find Levin by the foosball table every day after lunch. When Levin leaves work (yes it happens sometimes) he likes to go out with friends to restaurants and try different kinds of food. You can call him a foodie.

Levin says, “connecting businesses all over the world, changing the way they do business, I think that is something that might change the world a bit and it’s great being a part of that.”

It might sound like a sales pitch for Tradeshift, but for Levin it is pure excitement about the mission he’s on.

He continues, “there is so much going on, it’s growing so fast that you really have to push yourself to keep up with the speed. On one hand that is hard, but it’s also fun.”

Firstly, be sure to ask for a healthy range of different businesses that use the solution. Does satisfaction vary between industries? Does it vary depending on whether they are the supplier or the buyer? How has their experience with the tool changed over time?

Anything to hide?

On this last point, you’ll also want to make sure those involved have been working with the product for a sensible amount of time. If they’re still in the honeymoon phase, you may be unlikely to get the full picture or an idea of challenges that arise over time.

Another reason this can be such a valuable inclusion in the RFP is because of what it tells you about the company you’re working with. Are they reluctant to put you in touch with sources that will be genuinely useful in your assessment? Do they drag their feet or insist on being included in the discussions?

The pitch process is as much a chance to learn about your new partner as the tool they are providing. If they are trying to pull the wool over your eyes so early on, imagine how that relationship will develop over time.

Widening the search

When the e-invoicing provider suggests certain references, have a look to see if the customer story has been used elsewhere. Has it been written about in publications? Has it even been covered by journalists or bloggers in your vertical sector?

Perhaps support the process further with a bit of investigation on social media. What do your followers on Twitter think? Are there any influencers on those channels who can lend you advice from their experience and act as a reference in that way? Are there LinkedIn groups that may shed some light on the virtues of different solutions?

The process of getting references in your e-invoicing RFP may be one of the most important aspects and certainly one spending time on. After all, once you start using the solution you select, it will form the backbone of your entire financial infrastructure. Think carefully about what it will be saying about your business – that may be the most important reference of all.

RFP TIP: A variety of insights into tools will provide you with the most complete picture of the potential.