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June 23, 2016
Unlocking Cash with Supply Chain Finance
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 2
 Introductions
 Supply Chain Finance’s (SCF) real...
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 3
Today’s Presenters
Christopher J. Dwyer
Research Di...
Supply Chain Finance’s Real Impact
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 5
» $3,900,000,000,000
Estimated shortfall of Working...
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 6
Working Capital Dynamics – Excess Capital
0
400
800...
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 7
Kyriba Supply Chain Solutions
Two distinct solution...
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 8
SCF Solutions – Addressing the ENTIRE Supply Chain
...
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 9
Solution
Payment term management
Early pay discount...
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 10
US Based Home Improvement Retailer
– The single la...
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 11
Global CPG Company
– Achieved $120M in cash flow g...
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 12
Realizing the Promise of SCF
World Class
Technolog...
How Does SCF Fit into Today’s Financial Operations?
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 14
Top Cash Management Challenges in 2016
Payment app...
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 15
The Two-Tiered Financial Challenge
2. Visibility
E...
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 16
SCF and Discounting Technology Adoption, Today vs....
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 17
Buyers
want high
DPO
Suppliers
want to
get paid
Th...
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 18
The Supply Chain Finance Solution
Supplier
submits...
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 19
SCF Helps Avoid the DPO Problem
Suppliers receive ...
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 20
The Road Ahead: Understanding the Financial Ecosys...
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 21
 Significant cash remains trapped in the financia...
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 22
Executive Roundtable Discussion
Chris Dwyer
Eric R...
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 23
Additional Resources
eBook: Making the business ca...
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 24
Thank You For Attending
facebook.com/kyribacorp
tw...
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Unlocking cash with SCF webinar_6-23-16_Kyriba & Ardent Partners

Supply Chain Finance - integrated with cash management and payments technology - offers a win-win alternative to improve working capital and reduce supplier risk.

In this webinar, we discussed how supplier financing can add 15%+ return to your organization and reduce risk in the supply chain. Other topics included:

- Identifying organizational goals and three keys to success in supplier financing
- Global working capital shortfall
- The negative impact of a "mandate culture"
- Why it matters to have the right stakeholders at the table

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Unlocking cash with SCF webinar_6-23-16_Kyriba & Ardent Partners

  1. 1. June 23, 2016 Unlocking Cash with Supply Chain Finance
  2. 2. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 2  Introductions  Supply Chain Finance’s (SCF) real impact  How does SCF fit into today’s Financial Operations?  Executive roundtable discussion  Audience Q&A Agenda
  3. 3. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 3 Today’s Presenters Christopher J. Dwyer Research Director Eric Riddle EVP Supply Chain Finance Joe Brown Director, Supply Chain Finance
  4. 4. Supply Chain Finance’s Real Impact
  5. 5. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 5 » $3,900,000,000,000 Estimated shortfall of Working Capital in the SME space globally » $500,000,000,000 The total liquidity in the US to be unlocked by SCF, according to McKinsey » 62% Average percentage of spend with sub- investment grade or non-rated suppliers in the typical manufacturing supply chain Environmental Conditions
  6. 6. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 6 Working Capital Dynamics – Excess Capital 0 400 800 1200 1600 2000 1980 1990 2000 2010 Source: Federal Reserve Organizations have surplus in cash Source: Federal Reserve Interest Rates are historically low 0% 10% 20% 30% 1980 1990 2000 2010 Source: PayStream Advisors Only 12% offer Payment Discounts 88% 12% Discount Terms Net Terms Source: PayStream Advisors 37% 54% 9% High Priority Capturing Discounts is a priority
  7. 7. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 7 Kyriba Supply Chain Solutions Two distinct solutions to drive business value for the buyer (you!) Payables Financing  Improve Working Capital  Increase company’s free Cash Flow Dynamic Discounting  Optimize Cash Balances  Increase Interest Income Free Cash Flow DPO
  8. 8. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 8 SCF Solutions – Addressing the ENTIRE Supply Chain Source: Cap Gemini Reverse Factoring Dynamic Discounting  Highest Transaction Volume  Lower Demand for Cash  Higher Demand for Cash  High Yield on Buyer Cash Kyriba SCF Solutions P Card  Highest Demand for Cash  Highest Rate Tolerance
  9. 9. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 9 Solution Payment term management Early pay discounting Dynamic discounting Payable financing Notes: 1 Assumes monthly settlement cycle with issuing bank 2 Assumes Buyer starts with all check payments Positive Neutral Negative Impact on Buyer Working Capital EBIT Process Efficiency Impact on Supplier Working Capital EBIT e-Procurement e-Invoicing Strategic sourcing and procurement Purchasing cards1 Other purchasing channels Other payment channels2 © 2014 KYRIBA CORPORATION. ALL RIGHTS RESERVED. PROPRIETARY & CONFIDENTIAL Solutions Impacting Working Capital in the S2S Space
  10. 10. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 10 US Based Home Improvement Retailer – The single largest supplier has a cost of capital about 80bps/.8% – Yet they sell out of all $1.75B per year in receivables at 2.00% Why: – Because they view this as off balance sheet cash and compare it against their Return on Invested Capital (ROIC), not their Cost of Capital which runs at about 12% Success Story
  11. 11. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 11 Global CPG Company – Achieved $120M in cash flow gain in 6 months How: – All internal functions, Treasury, Procurement and IT aligned – CFO directly involved – Strong objective setting and program oversight – Corporate commitment and culture to set objectives and meet them Success Stories
  12. 12. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 12 Realizing the Promise of SCF World Class Technology Platform Liquidity Legal Infrastructure Vendor Spend Analysis Procurement Training & Services Supplier Mktg & Education Program Design & Mgmt Supplier Enablement Working Capital Solutions
  13. 13. How Does SCF Fit into Today’s Financial Operations?
  14. 14. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 14 Top Cash Management Challenges in 2016 Payment approvals take too long and cost too much Lack of budget to invest in payables or cash management automation Poor visibility into payment data Late/delayed supplier payments Unable to automate/maximize early payment discounts
  15. 15. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 15 The Two-Tiered Financial Challenge 2. Visibility Enhance analytics and reporting around AP/finance Improve overall visibility in payment- related data Need to transform data into real financial intelligence 1. Cost/Finances Reduce payment-processing costs Improve the enterprise’s ability to manage and forecast cash (and optimize DPO) Take advantage of early payment discounts
  16. 16. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 16 SCF and Discounting Technology Adoption, Today vs. 2018
  17. 17. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 17 Buyers want high DPO Suppliers want to get paid The DPO Problem
  18. 18. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 18 The Supply Chain Finance Solution Supplier submits invoice Buyer approves invoice Third-party lender pays supplier Buyer pays lender (at a later date)
  19. 19. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 19 SCF Helps Avoid the DPO Problem Suppliers receive payment earlier • Supplier invoices often paid when approved • No need to wait 60, 90, 120 days for payment Buyers hold onto cash longer • Third-party lenders offer extended payment terms • DPO is drastically improved Suppliers and buyers maintain a strong partnership • Supplier’s need to get paid competes with buyer’s desire to save cash by extending payment terms • SCF enables both to happen with minimal consequences
  20. 20. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 20 The Road Ahead: Understanding the Financial Ecosystem Extended Value Supply Chain Finance Dynamic Discounting Pay ePayments Cash Management Front End Scan / Capture Invoice-Processing
  21. 21. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 21  Significant cash remains trapped in the financial supply chain  Overall benefits are numerous and significant – Buyers can inject Cash into the supply chain where it’s most desperately needed – Buyers can remove Cost, Capital and Risk from within their supply chain – Suppliers are able to stabilize access to much needed working capital  What is your opportunity? Summary
  22. 22. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 22 Executive Roundtable Discussion Chris Dwyer Eric Riddle Joe Brown
  23. 23. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 23 Additional Resources eBook: Making the business case for supply chain finance Get PDF at: http://kyri.ba/SCFeBook Global Business Intelligence 2016 report: State of Supply Chain Finance Industry, Entering a New Era of Maturity Get PDF at: http://kyri.ba/SCFstate
  24. 24. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 24 Thank You For Attending facebook.com/kyribacorp twitter.com/kyribacorp linkedin.com/company/kyriba-corporation youtube.com/kyribacorp slideshare.com/kyriba kyriba.com/blog

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