Digitizing the Invoice Process in Container Shipping: Streamlining the Workflow with Digital Tools

The current process

Although a lot of processes in the shipping industry have been digitized already, the invoicing process is still a very manual one. When goods are shipped, suppliers issue invoices detailing the products, quantities, prices, and terms of sale. These invoices are then sent physically or via email to the buyers or consignees. Upon receipt, the invoices must be manually reviewed, validated, and processed by accounts payable departments. This often involves data entry into internal systems, matching invoices with purchase orders and delivery receipts, and obtaining approvals for payment.

While in other industries such as the e-commerce sector, digital invoicing and accounting processes are quite common, the logistics and shipping industry is not as advanced yet. Nonetheless, there are some potential digitalization measures that will come up in the future.

The digitalization of the invoice process – some future scenarios

Digitalization of the invoice process will involve leveraging digital technologies to automate and streamline the handling of invoices from creation to payment. This includes electronic issuance, submission, processing, and approval of invoices using specialized software or platforms designed for efficient invoice management.

Key components of this process include:

• Digital transmission of documents: Sending and receiving invoices electronically, eliminating the need for paper invoices. This also improves the entire submission and creation flow, as suppliers can generate and submit invoices electronically, reducing manual effort and paper usage.
• Automated Processing: Using software to automate invoice data capture, validation, matching with purchase orders and receipts, and routing for approval. It can also validate invoices against predefined rules, flagging discrepancies for review while streamlining the approval process, enabling faster processing and reducing bottlenecks
• Integration: Seamless integration with existing enterprise resource planning (ERP) systems or accounting software to ensure data consistency and accuracy.

Benefits of digitizing the invoice handling process 

The benefits of embracing digitalization in invoice handling are substantial for SMBs in the shipping industry: 

1. Improved efficiency: Automation reduces the time spent on manual tasks such as data entry and approval routing, allowing staff to focus on strategic activities.
2. Faster processing: Electronic submission and automated processing accelerate invoice processing times, leading to quicker approval and payment cycles. 
3. Reduced errors: Automated validation reduces errors associated with manual data entry, ensuring accuracy in financial records. 
4. Cost savings: Eliminating paper-based processes reduces printing, postage, and storage costs, contributing to overall cost savings. 
5. Enhanced visibility and control: Digital platforms provide real-time visibility into invoice status, enabling better tracking and management of payments. 
6. Compliance and security: Digital systems often come with built-in compliance features and robust security measures to protect sensitive financial data.