Tommy Hilfiger Europe has adopted Sterling Commerce’s e-Invoicing solution to automate buyer electronic invoicing processes to improve its cross-border operations. The retailer said the solution will enable it to reduce the cost of its trading by automating customer invoicing processes and extend those benefits to its community of business partners.
Tommy Hilfiger’s accounts receivable department processes on average 33,000 invoices per month from 4,000 customers. The company sought to improve profits by ensuring all invoices are processed accurately in order to be paid on-time and in-full. An end-to-end audit of accounts receivables processes found that invoices cost approximately 1 euro each to print and post internationally and additional costs were incurred through lost receipts and man-hours to rectify errors and chase-up receipts. To achieve its objectives, Tommy Hilfiger wanted to reduce the error rate in its invoice processing and speed up payments.
Frederick Kolff, vice president of credit management at Tommy Hilfiger, said, “To us, e-invoicing is the future of invoicing and we wish to be among the first companies in our industry to offer this service to our customers.”
He added that Sterling Commerce’s solution improves the speed, accuracy and efficiency and ensures compliance with all its safety and auditing regulations. “As a result, our invoicing costs are reduced and our DSO (days sales outstanding) will improve. Equally important to us is that we can have a positive impact on the environment from e-invoicing owing to the huge amount of paper we will save.”
Sterling e-Invoicing ensures automated tax and regulatory compliance across multiple countries. The system also archives invoices to meet specific country requirements, offers audit and reporting tools to accommodate tax authorities’ audit and enquiry demands and provides signed PDF authentication and non-repudiation services globally.