This presentation describes the state of Accounts Payable and uncovers the paradigm shift underway. With greater integration with the procure-to-pay (P2P) process, expect a more connected, automated, and transparent operation. Find out how the Tradeshift platform is designed for the new world of P2P.

1. AP – A Catalyst for P2P Transformation

2. Agenda
 State of Accounts Payable
 Paradigm shift in the AP Role
 Administrator
 Collaborator
 Strategic business unit
 The new world of P2P
 Straight Through Processing
 Rip off the Scanning Band-Aid
 Mobile
 Supplier Relationship Management
 Working Capital Management

3. Top Priorities for AP
13%
17%
19%
24%
44%
52%
Need to improve days payables outstanding (DPO)
Need to improve visibility into invoice/payment data
Need to reduce invoice/payment related errors
Need to improve collaboration (internal & external)
Need to improve processing efficiency
Need to migrate off paper-based processes
©Ardent Partners - 2013

4. Operational Capabilities with AP
79%
48%
42%
32%
17%
28%
36%
43%
Standardized AP
processes
Working capital
optimization
policies
Measurement of
key AP metrics
Linkage across P2P
process
Currently Exists Plan to Implement
©Ardent Partners - 2013

5. Why P2P is Key…
Analyze
Spend
Source
Contract
ProcureReceive
Invoice
Processing
Payment
Support the business by:
 Managing enterprise spend
 Ensuring the right goods and services
are purchased at the right price
 Identifying (and managing) the
highest-value suppliers
 Manage transactions and compliance
Also focused on:
 Supply Risk
 Savings
 Optimize working capital
 Supplier Relationships

6. Top 10 Benefits of a Holistic P2P Process
Better identification of
sourcing
opportunities
Improved contract
compliance and a
reduction in maverick
spend
More spend under
management
Greater automation,
visibility and control
across AP
Reduction of
exceptions / errors
and improvement in
processing efficiency
& cycle time
On-time payments
suppliers (or early).
The ability to track
supplier performance
The ability to measure
and improve
departmental
performance and
customer service
The elevation of AP
from a back-office
function to a strategic
component
Significant working
capital and discount
savings.

7. Agenda
 State of Accounts Payable
 Paradigm shift in the AP Role
 Administrator
 Collaborator
 Strategic business unit
 The new world of P2P
 Straight Through Processing
 Rip off the Scanning Band-Aid
 Mobile
 Supplier Relationship Management
 Working Capital Management

8. Paradigm Shift Occurring with AP
Administrative
• Manual tasks
• Data Entry
• Repetitive
• Tactical
• Inefficient
• Outdated
• Efficiency/visibility
• Value-add
• Supporting
• Knowledge sharing
• Data
• Automation
• AP Clerks AP Analysts
Collaborative
Strategic Business Unit
• Collaborative
• Intelligence / Analytics
• Performance Driven
• Procure-to-pay
• Working Cap Optimization
• Supplier Management
• Treasury/Procurement Insights

9. Collaboration, Not a Trend
71%
59%
52% 49%
29%
41%
48% 51%
AP & Treasury AP & Procurement AP & Line of
business
AP & Suppliers
Good Collaboration Poor or No Collaboration
©Ardent Partners - 2012

10. This is what your AP operation can do…
Metrics Best-in-Class All Others
Cost to Process an Invoice $2.20 $13.10
Number of Invoices Processed per FTE per month 3,559 1,335
Percent of Invoices Processed Straight-Through 44.2% 18.4%
Percent of Suppliers that Submit Electronic Invoices 41.8% 14.5%
Average Time to Process an Invoice 3.3 Days 13.5 Days
Paid On-time Percentage 91.4% 70.8%
©Ardent Partners - 2013

11. Agenda
 State of Accounts Payable
 Paradigm shift in the AP Role
 Administrator
 Collaborator
 Strategic business unit
 The new world of P2P
 Straight Through Processing
 Rip off the Scanning Band-Aid
 Mobile
 Working Capital Management

13. Today’s world is about flexibility and
extensibility
Supplier Registration
Supplier Financing
with CapitalAid
Latin America Compliance
with Invoiceware

14. Tradeshift’s Open Platform Approach
TRADESHIFT PLATFORM
Document Transmission, Statuses, Messages, Integration, Security, API
Supplier
Buyer
Order
Management
Electronic
Invoicing
Business
Firewall
CloudScan®
(Paper)
Collaborative
Workflow
Financial
Solutions
Build Your Own
App
Supplier
Management
Ability to expand functionality as needed

15. Invitation to send
invoices
electronically
Join Tradeshift
Create invoice
using Tradeshift
Web App
Invoice
transmitted
electronically via
Tradeshift
Create invoice
using existing
accounting tools
Email invoices
Invoices
converted to
electronic format
Invoice details
validated by
supplier
Paper Invoices
Invoices
converted to
electronic format
Invoice details
validated by AP
staff
Invoices
with
exceptions
are flagged
Tradeshift CloudScan
PAPE
R
Electronic Supplier Enablement Benefits
Everyone

16. # of
invoices
Size of Suppliers
# Of
suppliers
Large Medium Small
Scanning is a Band-Aid. Rip it Off!
Supplier
Integration
Supplier Integration Supplier Integration
Supplier Validated
CloudScan
Supplier Validated CloudScan
Web Application
Plug & Play
connectors
Plug & Play
connectors
Plug & Play connectors
CloudScan EnterpriseCloudScan
Enterprise
CloudScan
Ent.
CloudScan with AP validation
CloudScan with supplier validation
Web Application
Supplier Integration
Plug & Play connectors
Supplier Integration
Plug & Play
connectors
Plug & Play
connectors
Supplier
Integration
100%
(invoice
volume)
100%
(suppliers)

17. CloudScan: Supplier validation of invoices

18. CloudScan: AP validation of invoices
All items CloudScan Escalation Code Approve Supplier Requests

19. Collaborative Workflow – Internal and External

20. Supplier Management – for AP & Procurement
 Streamline supplier
onboarding process as part of
Tradeshift platform and
workflow process
 Integrate with Dun &
Bradstreet, IRS and other 3rd
party data sources to validate
supplier authenticity
 Extend your corporate brand
to the supply chain process

21. What’s the top incentive for
suppliers?
Get paid on time…or even early!

22. Working Capital Optimization to Better Supplier
Relationships
 Seamless integration to
Tradeshift platform and multi-
pronged onboarding makes for
fast adoption of suppliers
 Tradeshift mobile workflow
increases captured discounts
 Match suppliers to the right
program: Dynamic
Discounting, SCF products
from Citibank and other
finance options

23. AN IDEAL PLATFORM FOR LAUNCHING EARLY PAYMENTS
Suppliers are arm-wrestling
DPOs with the Buyers …
… And at the same time
financing is a scarce and
expensive resource …
Today’s Payment Reality

24. Alternativefundingcost
SCF
# suppliers
Payable
value
Alternativefundingcost
Buyercentric
# suppliers
Payable
value
Suppliercentric
Buyer
Other
Offering the value to your entire supply chain

25. Dynamic Discounting Should be Easy

26. $2.1M savings for every $1B spend. That’s Strategic.
Process Automation
■ Eliminate paper invoices, reduce invoice
approval cycle time, and improve visibility
and overall AP processes
Supplier Management
■ Shared supplier portal enabling suppliers
to view and resolve invoice exceptions and
reduce supplier inquiry calls
Early Payment Discounts
■ Discount program management and
dynamic discounting resulting in increased
discounts and >20% return on cash
Typical Business Case
Eliminate
manual
process of
checks and
invoices
Increase
early
payment
discounts
Reduce
Supplier
support
inquiries
 Saving of $5 per invoice achieved through migration from a paper to
an electronic method, and assume 90% adoption of 100,000 invoices
resulting in savings of $450,000 per year.
 Assume a 15% reduction in the invoice exception rate at an additional
$10 per exception which results in savings of $150,000 per year.
 Assume 10% discount penetration earning a 1.5% discount rate for
a$1.5M benefit…growing to $3M with an automated technology
platform.
$450K
$1.5M
$150K
$2.1M
Total
estimated
benefit
$1.5M
2X increase
in early
payment
discounts
with
additional
WCO
services

27. “So impressed.
Works beautifully.”
“Tradeshift is awesome
and free to use!”
Selina Smith, Graphic designer in Ottawa
@selinalsmith
Clint Tabone, Freelancer in Malta
@clinttabone
Robb Sullivan, home theater designer in Houston
Customers include Jennifer Lopez and Jay Z
@AVAdvice
“Tradeshift rocks!”

28. Thank
You!