e-Invoicing - ODeX Implementation in Ocean Shipping

The invoicing in the shipping industry is based on the incoterms. On the basis of incoterms agreed with buyers (Importer) and seller (Exporter), the invoices are generated by the shipping lines. Accordingly, the transportation and/or logistic cost is derived to deliver the cargo from one destination to another destination. As per invoicing as well, the freight and non-freight charges are bifurcated and paid by the respective party.

Traditional Way of Invoicing vs Implementation of e-Invoicing via ODeX

Shipping Industry has seen many changes in the last 10 years. One of the most significant ones is the transition from manual to digital.

* Earlier Agents & their staff waited at the Shipping Line counter to receive the hard copy of the invoice. Now there is no need to visit of shipping line office. A user just has to log on to ODeX to get the invoice on a click.

* E-Invoicing introduced reliability, mobility of reporting, increased accuracy, internal control system of increased productivity, ease of back up and restoration of records.

* Transparency is maintained by providing the digital invoice.

* Central control and monitoring through ODeX interface: from one location e-Invoicing, e-Payment and e-DO is controlled and it will be available for all the time, no need to keep or store paper physically.

* Faster access of invoice is possible. Payment confirmations can be viewed online and get the e-DO without visiting shipping line office.

Transition in Shipping - a mindset change required

The Shipping Industry is in a transition stage. Traditionally, Shipping has been slower to adapt to changes than other industries. Yet, in this case, the response from the industry has been overwhelmingly positive and supportive. In the future, we can see many changes which will not only reduce the manual work, but this will also help optimise the cost of logistics in the industry.

Despite its traditional mindset, nowadays we can see various changes that can totally transform Shipping business in the coming years.

One of the challenges in this industry is to change the mindset and make the technology more welcome. This industry is mostly run by family-oriented model. Very few players are ready to invest in technology. But in last five years, we can see the new generation is ready and they believe in technology. So the future of technology in this industry is very bright.

Also, shipping associations in different parts of the world are concentrating to improve the efficiency and effectiveness with optimum use of technology. One of best example recently we have seen by IMO who introduce the VGM. Where there is no manual intervention while providing the VGM to the terminal for planning the stowage of the vessel.

How e-Invoicing has delivered benefits to its users

Today, for getting an invoice the CBConsignee does not need to visit shipping line office. They just need to send the request through the ODeX platform and shipping line releases this invoice on ODeX as per request. This avoids delays and saves time on following up with shipping lines.

Let’s take COSCO Shipping for example. Earlier they used to receive the request on e-mail and the users at COSCO would generate the invoice on ERP and send the attachment through e-mail. This e-mail is now restricted access to one system user. With the e-Invoice on ODeX, requester need not follow-up with shipping line and at the shipping line side, there is less chance of duplicate work on a particular invoice, since users can track which invoice has been assigned to them.

Also, technology on ODeX helped to COSCO to release e-Delivery Order. This helps to reduce the manual work to collect the DO at the counter and helps to improve the paperless work in this digital era.

Reach out to us to know how ODeX can help out with your e-invoicing requirements!