Best practices in inventory management – ECR Europe’s new VMI manualIn May 2016, the ECR Community published a new Vendor Managed Inventory (VMI) manual explaining how on-shelf availability can be increased while keeping stock levels low. The manual explains VMI principles and describes step-by-step implementation.
The VMI handbook was developed in collaboration by experts from 15 European ECR and GS1 organisations. Telema is proud to share that the leading author for the manual was our CEO Hele Hammer, who was representing the academic partner in this project, the Tallinn University of Technology.
The handbook contains tools and templates, such as the VMI savings calculator and the VMI sample contract, which make implementation of VMI easier. A free copy in English is available for download at project leader GS1 Switzerland homepage: “Best practice in implementing VMI – a recommendation by the ECR Community”.
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E-invoicing to decrease VAT gap in Latvia by 40 million eurosIn March 2016, State Revenue Service of Latvia (SRS) initiated a project to mandate the use of electronic invoices and despatch advices by 2018. The main goals are to decrease tax fraud, improve transparency and automate VAT tax declaration.
The government has estimated that by 2018 the VAT gap could be reduced by 5%. The VAT gap is defined as the difference between the theoretical VAT liability and the collections of VAT. Reducing VAT gap by 5% This would mean 40 million more euros from the VAT tax.
The SRS has grown fond of the idea that they would receive copies of all the VAT invoices issued in Latvia. The dream is that this could happen automatically upon issuing e-invoices from suppliers’ ERP.
A workgroup including representatives from state, trade and EDI operators’ representatives is currently discussing the electronic format of e-invoices and e-despatch advices, security issues, service costs for companies and precise project timeline. The next meeting of the workgroup is planned for August 2016.
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City of Tallinn and City of Vilnius to save 15 million €In June 2016, Swiss e-invoicing experts at Billentis issued their annual report “E-invoicing/e-Billing. Digitisation and automation”. This year, the report focuses on how using structured e-invoices instead of pdf is the real key to process automation.
Globally there are around 370 billion invoices issued annually and only 10% of them are real e-invoices. About 10% of the total invoices are issued to public sector, making it one of the top players in the e-invoicing market. With the recent EU directives, public sector institutions in all EU member states will move to e-invoicing by 2018.
The Billentis report calculates savings for public sector based on assumption that 60% of the purchase invoices could be received as structured e-invoices. This means that the annual savings from move to e-invoicing for Vilnius and Tallinn could be a remarkable 15 million euros!
Martin Männil, IT Director of City of Tallinn comments: “15 million is a bit of an overstatement. However, we can confirm that the e-invoicing project was among the most successful ones of City of Tallinn's financial management improvement projects. The return on investment was exceptionally high, project payback period was about six months.”
Read more about the outlook for the new era of automation, onboarding your trade partners, overcoming barriers in e-invoicing projects and much more interesting here: www.billentis.com
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