EDI Can Save On Relocation Abroad.
Position | Brief Article |
Human resources managers who use electronic data interchange (EDI) for invoicing freight and storage charges for international assignees could save their companies as much as 10 to 20 percent of the total of household goods relocation costs, says Alan Moidel, senior manager, IAS Tax Technology, at Deloitte & Touche.
Moidel explains that shifting to electronic invoicing also gives a company the power to negotiate prompt payment discounts, which can add another percentage or two in savings. "Working with paper invoices only slows down the payment process," he says. "Paying electronically means you can pay quickly, sometimes within 24 hours, which is a tremendous cash flow advantage for the vendor."
He offers this scenario to illustrate the possible cost savings: A medium-sized global company might move as many as 250 to 300 employees and their families each year, for a total cost of more than $5 million to $7 million in household goods shipment and storage charges. With that much volume, a vendor...
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