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.

How Dynamic Discounting Helped Scientist.com Free Up Cash Flow

14 views

Published on

Scientist.com's Finance Team identified a strategic opportunity to support the business by leveraging their excess cash and liquidity to deliver early financing to the supply chain, enabling smaller partners to participate in business opportunities they would not have the liquidity to otherwise accept. In this session, Kris Kagan and Andreas Matthes of Scientist.com will discuss the details of their dynamic discounting program, how they supported it through effective cash management, and the benefits realized by Scientist.com and their ecosystem of partners.

Published in: Software
  • Be the first to comment

  • Be the first to like this

How Dynamic Discounting Helped Scientist.com Free Up Cash Flow

  1. 1. SciPay™ at Scientist.com How Dynamic Discounting helped Scientist.com empower suppliers to free up Cash Flow 2
  2. 2. Cash remains king. 3
  3. 3. 4 Who is Scientist.com?
  4. 4. 5 B2B online marketplace in the preclinical research sector • Scientist.com operates a B2B online marketplace that connects buyers and sellers in the preclinical research industry • Consolidated billing model: • Vendors provide goods/services straight to end-client and bill Scientist.com • Situation at Scientist.com: • No inventory, but large AR and AP • Lots of billing related correspondence • Few large buyers connecting with many smaller sellers • International transactions • Opportunity for global Dynamic Discounting portal -> SciPay
  5. 5. 6 What is SciPay trying to solve?
  6. 6. 7 Faster cash to fund working capital • Problem: • Small vendors want to access large pharma projects and but can’t accommodate long payment terms • Large pharma want to access innovation but don’t offer short payment terms • Solution: • Bridging payment term gap by allowing vendors to receive payment early at a discount • Treasury as the “heart” of the organization that funds innovation and operations
  7. 7. 8 Benefits for vendors, Scientist.com and its clients • Vendors: • Amplified business opportunities for small vendors by giving them global access to large pharma projects • Real time status queries for outstanding invoices and remittance • Scientist.com: • New revenue stream: up to 12.8% annualized return on financed vendor invoices • Reduced vendor correspondence due to invoice management portal • Clients: • Access to 2500+ vendors with innovative products without having to offer shorter payment terms themselves
  8. 8. 9 How does SciPay work?
  9. 9. 10 Early payments and invoice management • SciPay enables our vendors to receive automatic early payments and to manage their outstanding invoices online • Dynamic Discounting: 2/10 NET75 model with linear sliding scale based on invoice maturity • Supports all major currencies • Pilot phase with 100% rebate on charged discounts • Integrated with our website thru SSO for easy access • Manual and partial early payment options in the future • Financed with excess equity cash
  10. 10. 11 Current (and future) challenges?
  11. 11. 12 Maximizing Dynamic Discounting • Promoting SciPay across our entire vendor base • Making SciPay attractive to larger vendors • Include external funder • Leverage Kyriba TMS modules for effective liquidity planning
  12. 12. THANK YOU • Kris Kagan, VP Finance • Andreas Matthes, Director of Finance 13

×