Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Real-Time Communication Between Your
ERP System and Your Supplier Portal
Chris Cauley,
Senior Director Solutions Consultin...
I. Current State of the Invoicing & Payables Process
II. Moving from Traditional Invoicing to Full Electronic Invoicing
II...
No visibility
into the
invoice
process
Unnecessary
invoice status
and inquiry
calls
Missed early
payment discount
opportun...
 Why do supplier inquiry calls take up most
of my time?
 Am I missing out on supplier discount
opportunities?
 Is there...
The Perfect Storm – Time for a Change
01
02
03
04
T E C H N O L O G Y
S U P P L I E R S
I N T E R N E T
C L O U D / S a a ...
I. Current State of the Invoicing & Payables Process
II. Moving from Traditional Invoicing to Full Electronic Invoicing
II...
The Foundation for a
Successful Supplier
Financing Program
Moving from Traditional to Full Electronic Invoicing
What eInvo...
Key Take Away
Suppliers are a
Stakeholder, not a
Sales Target
I. Current State of the Invoicing & Payables Process
II. Moving from Traditional Invoicing to Full Electronic Invoicing
II...
Supplier Value Propositions
1. Complete Solution Offering
2. Covers all Submission Types
3. Interoperability with other pl...
Supplier Value Proposition 1: Complete Solution Offering
o eInvoicing, incl. flipping a PO
o Invoice status
o Remittance/p...
Supplier Value Proposition 2: Covers All Submission Types
Visibility
provided for
ALL invoices and
payments
regardless of ...
Supplier Value Proposition 3: Interoperability
Current
Network
or
PlatformNetwork
or
Platform
Supplier accesses each
platf...
Supplier Value Proposition 4: No Fees
• Simply put – suppliers will not use a platform that charges a fee
• More and more ...
Supplier Value Proposition 4: No Fees
Large Volume Suppliers
Midsized Volume Suppliers
Low Volume Suppliers
Integrated eIn...
Supplier Value Proposition 5: Financial Opportunity
Top Three Supplier Pain Points
1. Did you receive my invoice?
2. When ...
Supplier Value Proposition 5: Financial Opportunity
FACTORING MARKET IS
GROWING AT 28.6%
ANNUALLY AND EXCEEDS
$2.3 TRILLIO...
Complete
Solution
Offering
1 2 3 4 5
Covers 100% of
Submission Types
Interoperability No Supplier Fees Financial Value
The...
I. Current State of the Invoicing & Payables Process
II. Moving from Traditional Invoicing to Full Electronic Invoicing
II...
Fundamental Inefficiency
Buyers Have Excess Cash
U.S. Non-Financial Companies’ Cash & Liquid Assets
Low Return on Cash
U.S...
Average Time Suppliers Are Waiting for Payments
33%
1 to 30 DAYS
6%
0 DAYS
50%
31 to 60 DAYS
11%
61 + DAYS
*American Expre...
SUPPLIER
Invoices
Customer
BUYER
Approves Invoice
on Day 5
BANK
Invoice-Net 60
Buyer Earns
0.75% APR until
Due Date
Suppli...
Never Ending Friction Between Buyers and Suppliers
Payables as an Opportunity
0 DAYS
invoice
10-15 DAYS
approval
60 DAYS
due date
OPPORTUNITY
AVERAGE PAYMENT TERMS (DAYS)
An...
Supply Chain Finance:
Great for largest suppliers (30-50);
provides limited scale; low P/L benefit
Dynamic Discounting:
Be...
Financing for All
30-50
LARGEST
SUPPLIERS
Few NUMBER OF SUPPLIERS Many
Typical Supplier Spend
Curve
Buyer Hurdle Rate
TAUL...
TAULIA PLATFORM
ERP
FINANCIAL INSTITUTION
Seamless Electronic Connectivity
SUPPLIERS
BUYERS
Use Your Cash or a Cash of a Third-Party.
Always Capture Discounts.
DYNAMIC DISCOUNTS ON NET
TERM INVOICES
(OPT-IN)
EXTEND...
Four-Step Discount Terms Methodology
Offer Early Payments for suppliers on NET terms
Actively promote “CashFlow” for maxim...
Dynamic Discounting Is a Win-Win
A sliding scale allows for higher discount the earlier the payment for ALL invoices
• Eas...
Why Suppliers Choose Early Payment Discounting
Allow suppliers to get paid sooner
Payment dates are well under industry
av...
I. Current State of the Invoicing & Payables Process
II. Moving from Traditional Invoicing to Full Electronic Invoicing
II...
Will Buyers Generate Acceptable ROI?
“Taulia has saved us
more money quicker
than anticipated.”
- Ben Shaffer,
PG&E Financ...
Will suppliers actually enroll?
0%
22%
44%
66%
88%
110%
Go-Live Week 1 Week 3 Week 5 Week 7
Taulia Previous solution
Resul...
Is the integration smooth?
“Before we thought a seamless integration was nice to have. But what we
have learned is that it...
Will suppliers actively use the portal?
0
500
1000
1500
2000
2500
3000
Vendors Invited
Vendors Enrolled
Invoices Submitted...
Seamless ERP
Integration
Minimal IT
Support
Required
No Supplier Fees24/7
Visibility
Flexibility to
Ensure Millions
Saved
...
I. Current State of the Invoicing & Payables Process
II. Moving from Traditional Invoicing to Full Electronic Invoicing
II...
Our Vision of Tomorrow For You
01
02
03
04
F R E E
P R O F I T S
A D O P T I O N
P A R T N E R
Free eInvoicing and Self-Se...
Questions?
Get in touch with us!
Chris Cauley
Senior Director Solution Consulting, Taulia
Office: 415-376-8280 x7085
E-mai...
Upcoming SlideShare
Loading in …5
×

Fusion 2014: Real-Time Communication Between Your ERP System and Your Supplier Portal

899 views

Published on

  • Be the first to comment

Fusion 2014: Real-Time Communication Between Your ERP System and Your Supplier Portal

  1. 1. Real-Time Communication Between Your ERP System and Your Supplier Portal Chris Cauley, Senior Director Solutions Consulting, Taulia
  2. 2. I. Current State of the Invoicing & Payables Process II. Moving from Traditional Invoicing to Full Electronic Invoicing III. Getting Suppliers On Board: 5 Supplier Value Propositions IV. Supplier Discounts & Turning Issue Into Opportunity V. Real World Success Stories VI. Solution Demonstration VII. Questions Agenda
  3. 3. No visibility into the invoice process Unnecessary invoice status and inquiry calls Missed early payment discount opportunities AP Depts. drowning in paper High cost of manually processing invoices Challenges in Your Payables Process
  4. 4.  Why do supplier inquiry calls take up most of my time?  Am I missing out on supplier discount opportunities?  Is there a better way to optimize working capital? Buyer Pain Points  Did you receive my invoice?  When will I get paid?  Can I get paid earlier? Supplier Pain Points Buyer and Supplier Pain Points
  5. 5. The Perfect Storm – Time for a Change 01 02 03 04 T E C H N O L O G Y S U P P L I E R S I N T E R N E T C L O U D / S a a S Efficient ERP backend systems Invoice Workflow and Automation Real-time analytics Internet savvy Demand visibility and predictability Often cash poor with unfavorable financing landscape Open connectivity Abundant information Business without limitations Secure and scalable Driver for more savings New collaboration paradigm
  6. 6. I. Current State of the Invoicing & Payables Process II. Moving from Traditional Invoicing to Full Electronic Invoicing III. Getting Suppliers On Board: 5 Supplier Value Propositions IV. Supplier Discounts & Turning Issue Into Opportunity V. Real World Success Stories VI. Solution Demonstration VII. Questions Agenda
  7. 7. The Foundation for a Successful Supplier Financing Program Moving from Traditional to Full Electronic Invoicing What eInvoicing is Not: o Scanned/imaged paper invoices o OCR’ed paper invoices o Emailed PDFs Sending and Receiving Invoices Electronically Completely Eliminating Paper Data Stays Data: No Data Entry or Correction eInvoicing What is eInvoicing in 2014 and beyond?
  8. 8. Key Take Away Suppliers are a Stakeholder, not a Sales Target
  9. 9. I. Current State of the Invoicing & Payables Process II. Moving from Traditional Invoicing to Full Electronic Invoicing III. Getting Suppliers On Board: 5 Supplier Value Propositions IV. Supplier Discounts & Turning Issue Into Opportunity V. Real World Success Stories VI. Solution Demonstration VII. Questions Agenda
  10. 10. Supplier Value Propositions 1. Complete Solution Offering 2. Covers all Submission Types 3. Interoperability with other platforms 4. No Supplier Fees 5. Financial Opportunity
  11. 11. Supplier Value Proposition 1: Complete Solution Offering o eInvoicing, incl. flipping a PO o Invoice status o Remittance/payment details o PO updates, confirmation & history o Address changes, bank changes o Online Dispute resolution o Online W9/1099 o Focus on eInvoicing – Connectivity often a one-way street: “Incoming” only – No additional business data on the portal or network Current New
  12. 12. Supplier Value Proposition 2: Covers All Submission Types Visibility provided for ALL invoices and payments regardless of the business process. Paper, Fax PDF EDI, XML ERS eInvoice Portal
  13. 13. Supplier Value Proposition 3: Interoperability Current Network or PlatformNetwork or Platform Supplier accesses each platform used by its customers New API Network or Platform Network or Platform Single Access Point for Suppliers
  14. 14. Supplier Value Proposition 4: No Fees • Simply put – suppliers will not use a platform that charges a fee • More and more providers offer electronic invoicing free of charge to suppliers • Must offer genuine supplier business value from Day 1.
  15. 15. Supplier Value Proposition 4: No Fees Large Volume Suppliers Midsized Volume Suppliers Low Volume Suppliers Integrated eInvoicing (eFile, eLink) • Traditional EDI, such as 810 or EDIFACT • Various file formats (CSV, TXT, XML) and submission methods (FTP, AS2) • Taulia’s API Seamless and Convenient (eUpload, eSend) • Upload of various formats into portal (CSV, XML) • Emailing of invoices as attachments (PDF, image files) with subsequent supplier self- correction in error cases Simple Submissions (eFlip, eForm) • Flipping a PO (SAP MIRO in the cloud, supplier facing • Invoice web form submission (when no PO available) Removing the Barriers to eInvoicing Participation
  16. 16. Supplier Value Proposition 5: Financial Opportunity Top Three Supplier Pain Points 1. Did you receive my invoice? 2. When will you pay me? 3. Can you pay me earlier?
  17. 17. Supplier Value Proposition 5: Financial Opportunity FACTORING MARKET IS GROWING AT 28.6% ANNUALLY AND EXCEEDS $2.3 TRILLION CREDIT CARDS CARRY 15% APR – INDUSTRY AVERAGE BANKS ARE RELUNCTANT TO LEND TO SMB’S AND IF SO, IT’S OFTEN AT STEEP RATES SMB LOANS ARE EFFECTIVE FOR LARGE CAPITAL EXPENDITURES - NOT APPROPRIATE FOR DAY-TO-DAY EXPENSES TRILLONS FACTORING 1.54 1.771.811.75 2.25 2.75 2.91 1 1.5 2 2.5 3
  18. 18. Complete Solution Offering 1 2 3 4 5 Covers 100% of Submission Types Interoperability No Supplier Fees Financial Value The Series of Events: A Simple Chain Supplier Adoption
  19. 19. I. Current State of the Invoicing & Payables Process II. Moving from Traditional Invoicing to Full Electronic Invoicing III. Getting Suppliers On Board: 5 Supplier Value Propositions IV. Supplier Discounts & Turning Issue Into Opportunity V. Real World Success Stories VI. Solution Demonstration VII. Questions Agenda
  20. 20. Fundamental Inefficiency Buyers Have Excess Cash U.S. Non-Financial Companies’ Cash & Liquid Assets Low Return on Cash U.S. Interest Rate – 10-Year Treasury Rate ($ in tn) 0% 2% 4% 6% 8% 10% 1990 1995 2000 2005 2010 $0.0 $0.5 $1.0 $1.5 $2.0 1990 1995 2000 2005 2010
  21. 21. Average Time Suppliers Are Waiting for Payments 33% 1 to 30 DAYS 6% 0 DAYS 50% 31 to 60 DAYS 11% 61 + DAYS *American Express Small Business Monitor. Polled 500 Canadian Business Owners. September 2012
  22. 22. SUPPLIER Invoices Customer BUYER Approves Invoice on Day 5 BANK Invoice-Net 60 Buyer Earns 0.75% APR until Due Date Suppliers Factor at 20+% APR 1. 2. 3. Banks Benefit from Payment Inefficiency
  23. 23. Never Ending Friction Between Buyers and Suppliers
  24. 24. Payables as an Opportunity 0 DAYS invoice 10-15 DAYS approval 60 DAYS due date OPPORTUNITY AVERAGE PAYMENT TERMS (DAYS) Anheuser-Busch Hertz Apple Industry Average 120 DAYS 60 DAYS 45 DAYS 56 DAYS
  25. 25. Supply Chain Finance: Great for largest suppliers (30-50); provides limited scale; low P/L benefit Dynamic Discounting: Beneficial for deploying excess cash to drive P/L benefits; Comes with DPO impact Taulia Enhanced Discounting: Increase profitability by capturing discounts without using your own cash Supplier Financing Landscape
  26. 26. Financing for All 30-50 LARGEST SUPPLIERS Few NUMBER OF SUPPLIERS Many Typical Supplier Spend Curve Buyer Hurdle Rate TAULIA ENHANCED DISCOUNTING Single Integrated Platform for Taulia Supplier Finance, eInvoicing and P2P Platform DYNAMIC DISCOUNTINGSCF Alternative Financing Interest Rate (Not Addressed)
  27. 27. TAULIA PLATFORM ERP FINANCIAL INSTITUTION Seamless Electronic Connectivity SUPPLIERS BUYERS
  28. 28. Use Your Cash or a Cash of a Third-Party. Always Capture Discounts. DYNAMIC DISCOUNTS ON NET TERM INVOICES (OPT-IN) EXTENDED PAYMENT TERMS ON TRADITIONAL DISCOUNTS (OPT-IN) $ $ $ $ $ ACTIVATE DYNAMIC PAYMENT TERMS (CONTRACTUAL) $ 0.0% 1.0% 2.0% 3.0% 0 10 20 30 TAULIA ENHANCED DISCOUNTING WITH THIRD PARTY CASH
  29. 29. Four-Step Discount Terms Methodology Offer Early Payments for suppliers on NET terms Actively promote “CashFlow” for maximum adoption STEP 1 Optimize discount opportunity and capture for suppliers on discount terms “Extend” existing discount terms STEP 2 Implement Dynamic Payment Terms (DPT) as standard payment terms for Procurement STEP 3 Actively convert suppliers to DPT STEP 4
  30. 30. Dynamic Discounting Is a Win-Win A sliding scale allows for higher discount the earlier the payment for ALL invoices • Easier and cheaper access to capital • Alternative to more expensive sources of financing such as Factoring • Early payments offered through the same portal as eInvoicing • Capture more Early Payment discounts • Strengthen supplier relationships • Risk-free short-term investments with double digit returns • Typical $1M to $2M returns per $1B in-scope spend Definition Supplier Benefits Buyer Benefits
  31. 31. Why Suppliers Choose Early Payment Discounting Allow suppliers to get paid sooner Payment dates are well under industry averages Discount rates can be less expensive than alternative forms of financing More convenient than funding alternatives Better balance sheet Helps to meet quarterly targets
  32. 32. I. Current State of the Invoicing & Payables Process II. Moving from Traditional Invoicing to Full Electronic Invoicing III. Getting Suppliers On Board: 5 Supplier Value Propositions IV. Supplier Discounts & Turning Issue Into Opportunity V. Real World Success Stories VI. Questions Agenda
  33. 33. Will Buyers Generate Acceptable ROI? “Taulia has saved us more money quicker than anticipated.” - Ben Shaffer, PG&E Finance Dept. Source: PG&E 0 5 10 15 20 25 30 35 40 45 2008 2009 2010 2011 2012 Taulia Deployed in 2011 $46M $31.4M $10M $5.8M$3.9M $77.4M in Discounts
  34. 34. Will suppliers actually enroll? 0% 22% 44% 66% 88% 110% Go-Live Week 1 Week 3 Week 5 Week 7 Taulia Previous solution Results: • Go-live 3.5 months after contract signature: • 45% of previous networked suppliers converted within 1 week • 99% converted within 5 weeks • Now enrolling non-previous networked suppliers: 30% of invited enrolled within 1 ½ weeks • $5M in discounts/Billion in spend • 7 Employees in AP department
  35. 35. Is the integration smooth? “Before we thought a seamless integration was nice to have. But what we have learned is that it's more than nice, it just makes a tremendous, tremendous difference. You're using a standard solution - you have the look and feel of your ERP. You can't even tell when you're using your ERP or Taulia. It's just a pure, endless, seamless solution.” - Marcia Golden, AP Director 90% of suppliers on-boarded 1.5 AP staff eliminated through attrition
  36. 36. Will suppliers actively use the portal? 0 500 1000 1500 2000 2500 3000 Vendors Invited Vendors Enrolled Invoices Submitted Gary Silsbe to discuss in next session.
  37. 37. Seamless ERP Integration Minimal IT Support Required No Supplier Fees24/7 Visibility Flexibility to Ensure Millions Saved In Summary, what do I look for?
  38. 38. I. Current State of the Invoicing & Payables Process II. Moving from Traditional Invoicing to Full Electronic Invoicing III. Getting Suppliers On Board: 5 Supplier Value Propositions IV. Supplier Discounts & Turning Issue Into Opportunity V. Real World Success Stories VI. Demonstration VII. Questions Agenda
  39. 39. Our Vision of Tomorrow For You 01 02 03 04 F R E E P R O F I T S A D O P T I O N P A R T N E R Free eInvoicing and Self-Services for your Suppliers Increased Profits From Early Payment Discounting Supplier Onboarding Guarantee Greatly Improved Suppliers Relationships
  40. 40. Questions? Get in touch with us! Chris Cauley Senior Director Solution Consulting, Taulia Office: 415-376-8280 x7085 E-mail: chris.cauley@taulia.com Twitter: @cauley3

×