Corporations Report Improvements in Working Capital Processes Through Use of EIPP- Online survey conducted by GTNews.com and sponsored by Citigroup
Online survey conducted by GTNews.com and sponsored by Citigroup
October 16, 2003, New York - Corporations are reporting better-than-expected improvements in their working capital processes through the use of electronic invoice presentment and payment (EIPP) solutions according to a survey conducted recently by GTNews.com and sponsored by Citigroup Global Transaction Services. Thirty seven percent (37%) said that process efficiency improved at a rate better than expected, 32% saw a positive impact on customer service levels and 25% experienced reductions in days sales outstanding (DSO), among those companies that had implemented an EIPP solution. Streamlining the accounts payable and receivable process was the key driver in adoption.
One third of the corporations responding to the survey already use electronic invoicing and EIPP use was highest among North American corporations at 38% and in firms with revenues exceeding US$ 1 billion at 42%. Almost two thirds (62%) of corporations that considered EIPP decided to go ahead with an electronic solution. When asked to cite the main reason for implementing an e-invoicing solution, 39% said that streamlining the accounts payable and accounts receivable process was the key driver, followed by reducing DSO and cutting costs.
20% had considered but rejected implementing an electronic invoice solution and 46% have not yet considered switching from paper-based process, according to survey respondents. But EIPP use is expected to grow in the near future with 45% of current non-users reporting that they plan to consider implementing an electronic solution in the next 12 months. The key barriers to usage were a lack of budget and/or internal sponsorship cited by one quarter of respondents who had previously considered but rejected implementing an e-invoicing solution followed by another quarter who thought the technology was ‘too new’.
“We are pleased to see that the results of this survey confirm our efforts around the world. We see EIPP use growing among clients, especially in North America and Europe. In fact, clients are creatively using EIPP with invoice discounting and financing to decrease Days Sales Outstanding and EIPP with netting is becoming a powerful global liquidity management tool,” said Maria Mandler, Managing Director and Global Head of EIPP for Citigroup Global Transaction Services.
This electronic survey was sent in May and June 2003 to registered corporate subscribers of GTNews and the survey results are based on responses received from 230 corporate treasury and finance professionals. Further analysis and details of the survey can be found at: http://www.gtnews.com/workingcapital/wcmsurveyinvoice.cfm
About Citigroup
Citigroup (NYSE: C), the preeminent global financial services company
with some 200 million customer accounts in more than 100 countries,
provides consumers, corporations, governments and institutions with
a broad range of financial products and services, including consumer
banking and credit, corporate and investment banking, insurance, securities
brokerage, and asset management. Major brand names under Citigroup's
trademark red umbrella include Citibank, CitiFinancial, Primerica,
Smith Barney, Banamex, and Travelers Life and Annuity. Additional
information may be found at: www.citigroup.com.
About Citigroup Global Transaction Services
Citigroup® Global Transaction Services is a leading provider of
integrated cash management, trade and securities services for corporations,
financial institutions, intermediaries and governments around the
world. With over $ 92 billion in average liability balances, more
than $ 5 trillion in assets under custody and the largest proprietary
branch network, Citigroup's award-winning operating systems and
Internet-based delivery channels enable clients to manage and monitor
working capital and investments more efficiently, streamline transaction
processing cycles, and re-engineer receivables and payment processes.
Citigroup® Global Transaction Services provides clients with access
to Citigroup's full range of capabilities and solutions along with
an on-the-ground presence and in-depth knowledge of more than 90
local markets. For additional information, see www.transactionservices.citigroup.com.
About GTNews
www.gtnews.com is the number one global information resource for
finance and treasury professionals. Updated weekly, GTNews provides
informed commentary, news and analysis from hundreds of key players
throughout the finance and treasury sector. Topics covered include
banking, risk, cash management, working capital, outsourcing, capital
markets, online trading, and systems. GTNews also features surveys,
job listings, directories, guides, news, Q&A forums & events
diaries.
GTNews has a user base of more than 25,000 senior finance and treasury
professionals from corporations and banks in over 100 countries.
Further details can be found at www.gtnews.com
