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16 January 2013 | Anna Reynolds
Nissan is transforming its procurement strategy across Europe to improve supplier payment times through an electronic invoice system.
The web3 P2P (Purchase to Pay) from Wax Digital will replace paper-based invoicing systems and enable 3,000 Nissan employees to raise requisitions electronically, replacing the current manual process.
Barry Wilmer, purchase systems development manager at Nissan Europe, told SM that “billions of pounds” of spend will go through the new system with the aim of “modernising and standardising” financial management processes across the automotive manufacturer’s operations in Europe.
“We hope to see an improvement with paying suppliers on time and on a regular basis. We will then look at paying suppliers earlier and negotiating a discount with them on agreeable terms,” he told SM.
Using the system suppliers will be able to convert purchase order information into an invoice that will improve process efficiency, create savings and deliver tighter control for the company. Wilmer said no jobs will be lost when the new system goes live in March, but some roles may change. “At the moment we have little or no catalogue systems so people may move to become catalogue managers,” Wilmer added.
The investment is part of a wider business plan, Nissan Power 88, where the company aims to improve operating profit by 8 per cent and increase global market share by 8 per cent by 2016.
Used by its business units and manufacturing plants, web3 will support multiple languages and currencies and process 600,000 invoices each year.
Daniel Ball, business development director at Wax Digital, said: “Everything about this project is big, from the number of users, territories and suppliers to spend under management, so there are some great opportunities for process improvement and bottom-line savings.”