Premium retailer Tommy Hilfiger Europe has selected electronic invoicing software to reduce the cost of cross-border and domestic trading.

The e-Invoicing software from Sterling Commerce, an IBM company, will automate its payments process, reduce the error rate in its invoice handling and speed up payments.

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 around EUR1 each to print and post internationally, with additional costs incurred through lost receipts and man-hours to rectify errors and chase-up receipts. 

“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,” said Frederick Kolff, vice president of Credit Management, Tommy Hilfiger.

“Our invoicing costs will reduce 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 due 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.