Power of PAYBOX®
The Other Green Benefits of E-Invoicing
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.
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.