How digitising saves construction businesses money

A new report suggests that small and medium-sized businesses (SMBs) could save thousands by switching to e-invoicing.

‘The connected SMB: Embracing digital strategies to fuel growth’ report by SAP suggests that Australian SMBs process an average of 168 invoices each month. With a Deloitte study estimating that e-invoicing could deliver savings of up to $20 per invoice, Australia’s SMBs could save up to $40,320 per year.

It was also found that construction and manufacturing SMBs could achieve the highest cost-savings, compared to other industries.

“Running an SMB comes with its challenges but switching to digital processes has been key to the survival of many businesses during the pandemic. It frees up time and money to focus on other priorities like developing new products and finding new customers,” said Sofiane Ainine, SMB Segment Lead, SAP Australia and New Zealand.

“Now is the time for SMBs to review their adoption of technology. This will help them through the current crisis and set them up for future growth.”

“The pandemic has highlighted the importance of technology adoption in helping small businesses innovate — increasing efficiency and productivity, attracting new customers in different markets, improving customer and employee experiences. This helps them create more jobs,” said Australian Small Business and Family Enterprise Ombudsman Bruce Billson.

“It’s encouraging that the research in this SAP report shows SMBs accelerating digital technology adoption. Technologies like e-invoicing improve process efficiency and, importantly, will see small businesses paid more quickly for the products and services they provide.”

Switching is easier than many SMB owners think

The research suggests that the fear of switching to e-invoicing is bigger than the challenge of implementing it, with 88% of SMBs that had made the jump saying it was easy, and almost one in five (18%) making the transition without external support.

“SMB owners shouldn’t feel like they are alone on this journey. There are many sources of support ready to help them overcome hurdles and make the most of opportunities by sharing experiences and advising on the best approaches for their business,” Ainine said.

“It’s about taking it one step at a time, learning what works and implementing digital initiatives that align to their goals.”

Innovation in action

Mining equipment manufacturer Geographe needed to update its business technology in support of its strategic vision to expand into new markets and refine its product sets around continued innovation.

Implementing an intelligent ERP system built on SAP S/4HANA Cloud has helped the business reduce lead times by as much as 50%. Automated core processes and greater operational efficiencies have reduced some workloads by more than 15%.

“Due to COVID-19, we have moved to hybrid working. Having a scalable IT landscape with greater transparency and real-time data helped us become more responsive to customer needs. We can now confidently predict customer demand and optimise production, inventory and our supply chain accordingly,” said Geographe CEO Sam Hyder.

To view the full report and key tips on how to transform your business, visit: www.sap.com/australia/connectedsmb.

Image credit: ©stock.adobe.com/au/Syda Productions