The Force (of Payables) Awakens! - How Payables Working Capital Will Change the Game in 2016 for Finance AND Procurement
Not so long ago, in a galaxy not too far away, procurement and finance organizations lived safely in their silos with separate goals only loosely connected to each other. But with many companies now turbo-laser focused not only on savings, but on working capital improvement, both groups are being called on to contribute to larger corporate goals. This session will highlight the power that finance and procurement teams can access by combining the forces of supply chain finance, dynamic discounting, and AribaPay with a comprehensive supplier strategy to deliver benefits that directly impact balance sheet positions and earnings per share.
Nitor Slides – SAP Ariba Live
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Advisory. Consulting. BPO.
1. Nitor is a Procurement Services Firm with deep experience in consulting and technology
1. We span the lifecycle of any Procurement engagement, from Advisory (what should you
do?) to Consulting (how to do it) and arriving at BPO (let’s maximize value)
2. Nitor is the only Procurement Services firm with this laser focus on Source-to-Pay,
offering engagement solutions that fit every need
People - Process - Technology
1. Savings reporting is still a negotiation.
2. We are not always engaged at the right time.
3. Deliver more savings with less…everything.
4. Often diminishing returns on categories already strategically sourced
5. Harder to find ways into non “Corporate” categories
The REAL Challenge:
Where can we add incremental value over the
next 5-10 years?
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Global Economy $80 Trillion
US Economy $18 Trillion (23.8%)
US Debt $19 Trillion
US Personal Debt $17 Trillion
Credit Card Swipes 20 Billion
Credit Card Dollars $19 Trillion
Average Transaction $88 dollars
Invoices Outstanding $19 Trillion
1. The Global Economy will grow at a moderate pace.
2. Financing & Trade, continue to be cornerstones of growth.
3. Global and National growth means more trillions of dollars will be traded annually.
4. Banks want to expand toolsets to monetize commercial dollars.
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1. Personal Finance Principles to your Company? 2. Menu of tools to achieve Working Capital?
3. Deliver expanded/new value streams to your
organization that are unquestionable and massive?
4. YOU - could single-handedly grow the
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Your Company Invoices
Pay Net 60 $100MM
Supplier Financing ($10MM)
Net to Supplier $90MM
Net 60Day 15
60 Day Credit on
$100MM @ 3%
Supplier pays average 2M/month interest
If your suppliers had most of this available as
working capital on Day 15 - what would
The $10M Question
Monetizing Payables - A Win/Win
1. There is $19T in locked up Capital globally - because it’s the way we have always
2. Viral model both from a Macro and Micro-economic lens.
3. Creates Partnership while also creating Leverage.
4. This truly has Speed-to-Market.
5. Game-Changing addition to Procurement Toolbox.
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Priority Strategy - Here is Why
Proprietary & Confidential
We have one goal in mind - helping our clients achieve