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The Other Green Benefits of E-Invoicing

On:
Friday, July 13, 2012

The other

The business case for e-invoicing is proven, in terms of time and cost savings. But companies shouldn’t overlook the other “green” benefits of e-invoicing: positive environmental impact.

Studies show that the overwhelming majority of companies have adopted a green initiative of some kind. While these companies should be lauded for their efforts at environmental stewardship, a quick glance at the typical accounts payable (AP) department shows how much work still needs to be done.

[EXCERPT]

The volume of paper required to support traditional invoice and payments processes is enormous. Yet a 2011 study by the Institute of Financial Operations (IFO) shows that 90 percent of companies still receive paper-based invoices. On top of its environmental impact, all of this paper results in lost productivity, process inefficiencies, and increased security and compliance risk.

According to NACHA’s PayItGreen Alliance, a single company annually initiating 520,000 paper invoices and 260,000 paper payments could save significant resources by converting just 20 percent of these documents to electronic documents:

… 184,314 pounds of paper
… 2,212 trees
… 160,680 gallons of gasoline
… 1,574 tons of green house gas

The results of even more eye-opening on an industry-wide basis. Getting rid of 12 billion pieces of paper — about a 50 percent reduction in the current paper invoice volume — would save 240,000 tons of paper, representing nearly 1 million trees, each year. Moreover, a 50 percent reduction in paper invoice volume would reduce the world’s carbon dioxide (CO2) footprint by almost 250,000 tons.

Companies are increasingly recognizing the environmental benefits of e-invoicing.

About 25 percent of companies responding to a 2011 study by IFO identified environmental benefits as a “very important” reason for deploying e-invoicing. A similar percentage of respondents identified environmental benefits as an “important” reason for deploying e-invoicing.

Direct Insite‘s PAYBOX® supports corporate green initiatives by wringing paper from AP processes.

PAYBOX®enables suppliers to electronically upload invoices to a secure global network, in turn, reducing paper processing, printing and storage, decreasing the chances of duplicate invoices, and eliminating statement mailing, handling and storage.

To learn how PAYBOX® can support your company’s green initiatives, contact us.

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