Post on 05-Oct-2020
eInvoicing in the Danish public sector
Riga 15th April 2010
Doug Hill ,GS1 Denmark
Denmark
©2006 GS1 Denmark2
Denmark
Content
Background to eInvoicing
Challenges and solutions
The GLN usage
Lessons learned
©2006 GS1 Denmark3
Denmark
The information revolution – “just do IT”
“The information revolution is sweeping through
our economy.
No company can escape its effects.
Dramatic reductions in obtaining, processing and
transmitting information are changing the way we
do business”
Prof. M. E. Porter .
Harvard University 2001.
©2006 GS1 Denmark4
Denmark
eInvoicing market penetration
1,000,000,000
B2B Invoices in 2009.
The tip of the iceberg.
Only 5% eInvoice!
©2006 GS1 Denmark5
Denmark
5
Background to e-invoicing in Denmark
1. KPMG analyse the fund transfer
process in Denmark
2. KPMG analysis finds that € 135
Million per year could be saved
3. Based on the recommendation -
the work commenced.
4. The „Danish‟ model, a successful
blueprint
©2006 GS1 Denmark6
Denmark
6
A very aggressive timeline…
December2003
Act is passed
1. feb.2005
eInvoice
Go Live !
Nov. – dec.2004
Dep. orders passed
Dep. orders in hearing
April – Sept.2004
Project startup
April2004
©2006 GS1 Denmark7
Denmark
7
Status after five years: 2005 - 2010
1. All public institutions are able to receive electronic invoices.
2. All suppliers send invoices either fully digitalized or through
Read In-bureaus (70/30 ratio).
3. All public sector institutions have GS1 GLNs assigned.
4. Significant savings are being made.
©2006 GS1 Denmark8
Denmark
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How were the savings calculated?
Total efficiency potential savings of approx. € 100 mill./year*:
Elimination of float-days Approx. € 25 mill./year
Closing of cash tills Approx. € 15 mill./year
Easy Account Approx. € 30 mill./year
E-Invoicing Approx. € 30 mill./year
• ~ 15 million invoices/year
• Estimated €2 reduction in handling cost/invoice
*Source:
Danish Ministry of Finance presentation
©2006 GS1 Denmark9
Denmark
Key figures 2010
5 yrs post implementation of eInvoice
Savings to date thru eProcurement #………. ~ € 0.5 Billion*
Invoices digitised to date .………...................~ 60,000,000*
Total SME savings potential………………… ~ € 0.63 Billion**
Private sector companies……….…………….….440,000
Danish Municipal regions………...……………......98
Danish State regions…………. …………………….5
Danish State agencies and ministries…………….19
*Rough estimate to date
** Based on a KPMG report#
Only savings on the receiver side, i.e. government. Private sector benefits not in calculation
©2006 GS1 Denmark10
Denmark
Saving potential for issuers (2009 report)
©2006 GS1 Denmark11
Denmark
Savings potential for recipients (2009 report)
©2006 GS1 Denmark12
Denmark
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E-invoices February 2005 – December 2009
138 7
43
301 5
36
349 2
42
387 0
91
443 7
26
359 7
42
285 1
26
430 1
19
425 9
27
375 0
40
467 6
53
436 3
40
420 0
02
472 1
38
368 9
25
456 5
77
396 3
56
382 1
97
338 1
20
437 0
76
468 8
83
482 9
36
449 9
72
493 3
80
409 6
71
452 6
55
404 5
32
404 3
42
448 5
61
417 0
48
327 4
97
410 2
56
480 2
37
513 1
80
396 0
28
541 8
54
407 8
22
378 8
93
461 1
15
418 1
94
403 5
66
432 4
37
321 9
53
469 2
87
443 6
55
412 2
64
448 7
80
451 5
49
396 5
91
453 0
90
361 7
30
355 5
06
399 0
86
282 1
38
243 5
98
318 5
05
293 6
17
293 8
79
270 2
61
466 8
51
534 5
14
545 8
74
579 6
35
513 9
07
671 3
96
724 4
89
791 7
19
824 1
24
799 0
86
877 3
41
742 8
03
901 2
69
714 5
31
841 3
00
891 8
54
884 7
40
861 5
59
921 0
16
1 0
27 2
80
1 0
49 2
41
973 1
69
978 1
25
902 8
93
1 0
01 0
00
889 8
36
998 6
99
1 0
61 8
27
903 8
07
992 5
03
1 1
02 3
53
1 2
16 4
68
1 2
29 1
10
1 0
51 6
97 1
300 8
45
1 1
39 8
28
1 0
22 4
84
1 1
76 0
93
1 1
44 4
79
732 5
49
1 0
17 2
46
916 4
75
1 2
43 8
90
1 1
07 5
10
1 1
09 1
17
1 1
09 6
85
1 1
73 8
33
762 4
22
1 2
69 3
74
1 0
69 2
54
1 0
86 6
98
1 2
22 2
47
1 0
34 0
66
1 1
38 2
70
1 4
12 8
90
1 3
50 4
05
1 3
71 0
26
0
200 000
400 000
600 000
800 000
1 000 000
1 200 000
1 400 000
1 600 000
1 800 000
2 000 000
Read-in and full electronic invoices per month
Read-in invoices Full electronic invoices
©2006 GS1 Denmark13
Denmark
eInvoicing in the Danish public sector
1. Legislation (Mandatory compliance)
• Sign interchange agreement
• Compulsory eInvoice
• Float days reduced
2. GS1 Global Location Number, GLN
3. eInvoice, an XML message
4. Scan-in centres
5. Web EDI tool/Internet client tool
6. Online instance testing facility
7. Help desk operation
Other
Tools
©2006 GS1 Denmark14
Denmark
The global location number.
Routing solution
A globally unique key:
EDI routing key
EDI Location/role ID
Legal entities
Departments
Companies
Various Roles
The GLN in Denmark for the public sector construction
Check
Digit
N65 7 9 8 N7 N9N8 N10 N11 N12N5
Danish government prefix Location reference
“ a small but integral part of the whole eInvoicing solution”
5798000416604
©2006 GS1 Denmark15
Denmark
Why the GLN?
Characteristic Benefit
The GLN is a major global routing key Maximum adoption
Guaranteed Capacity Scalable solution
Unambiguous identification scheme Recognised coding scheme
Numbering integrity Strong GS1 governance
Cost effective Minimal investment
©2006 GS1 Denmark16
Denmark
Lessons learned
1. Need for legal regulation & strong political support.
2. Need for standardisation. Need to apply market solutions.
3. Stay in control of public sector location allocation.
4. Think big, but start small.
5. Leave no one behind, however, avoid read in bureaus
6. Use your local GS1 org…they can help!
©2006 GS1 Denmark17
Denmark
The spread of the “Danish model”
The GLN is becoming increasing the de facto key for public sector
eProcurement, below is a sample of countries and supranational orgs
that have applied /use the GLN :
EC – adopts GS1 GLN in their own supply
chain
Sweden uses the GLN in Public invoicing
Norway has applied the GLN in two
Municipalities
PEPPOL: Pan European Public
Procurement Online
An example „best practice‟ key in the CEN
workshop agreement documentation on
public sector data model profiles
(NB. See EC e-PRIOR)
©2006 GS1 Denmark18
Denmark
Next steps and Final word
Next steps:
More message types
o Full pre – post contract
RASP – A full architecture
Final word:
Apply standards that
have „traction‟.
Apply standards on
„ patterns of application‟
that are proven.
Any questions?
©2006 GS1 Denmark19
Denmark
Contact details
Hammershusgade 17
DK -2100 Copenhagen, Denmark
T +45 39 27 85 27
F +45 39 27 85 10
E info@gs1.dk
W www.gs1.dk
Douglas Hill
Senior consultant
Email: dsh@gs1.dk
Denmark
©2006 GS1 Denmark20
Denmark
Enjoy the day!
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