According to a VISA Canada study, the number of companies expecting to use electronic technology in the corporate purchase process will increase dramatically over the next four years.
The national survey of purchasing practices included responses from 778 mid- to large-scale businesses. Results are considered accurate within plus or minus 3%, 19 times out of 20.
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The Ordering Process:
- In 2000, 39% of companies used e-mail to make purchases; by 2005, that number is expected to increase to 60%.
- Telephone ordering will remain the most popular method, but will decrease from 95% in 2000 to 81% in 2005.
- In 2005, businesses expect to use e-mail for 18% of all orders.
The Billing Process:
- In 2000, a total of 2% of corporate billing was done electronically; in 2005, the use of electronic technologies in corporate billing is expected to jump to 27%.
- Of billing methods used, paper remains the most popular with 97% of respondents receiving them. That number is expected to drop to 81% in 2005 .
- Thirty-nine per cent of organizations anticipate using Electronic Data Interchange (EDI) billing in 2005, and 40% anticipate using electronic bill presentment (EBP).
- It cost an average of $45 to process a paper invoice; with EDI billing, the cost was $30.
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