The Impact of Harmonious Supplier Relationships Imagine supplier inquiry calls into your AP department being a thing of the past. Next envision being able to automate and maximise supplier discounts. Attend this webinar to gain insights on how to: - Achieve the highest levels of e-invoicing adoption and onboarding - Communicate and transact with your supplier network in real-time - Engage new technologies to achieve 100% e-invoicing with all your suppliers - Complete AP automation cycle with savings opportunities through dynamic payment terms - Become more profitable by paying suppliers early in exchange for a discount - Automate accounts payable with case studies presented Presenters: Christian Hjorth, Chief Commercial Officer, Tradeshift Joe Hyland, Global Head of Marketing, Taulia http://tradeshift.com/enterprise/events/

1. The Power of
Complete AP
Automation
Tradeshift & Taulia Webinar
September 25th 2012

2. Your presenters today
Christian Hjorth
Chief Commercial Officer, Tradeshift
Been with Tradeshift since the early start and came
from Salesforce.com and SAP
Joe Hyland
Sr. Director Marketing, Taulia
Heads up go-to-market strategy; ran P2P marketing at
Bottomline Technologies

3. Today’s Agenda
• The Challenge and the Opportunity
• Tradeshift Business Cloud
• Taulia Dynamic Discounting
• Joint Value Proposition
• Q&A

4. The Challenge and the
Opportunity

5. Your Situation Today
• Lots of paper invoices
• Fragmentation of channels
• Poor supplier adoption
• Error prone process
• Time consuming communication with
suppliers
• Losing $ by not capturing supplier
discounts

6. Imagine if…..
• You did not have to deal with any paper
invoices
• Invoices arrived within minutes of them being
sent by ALL your suppliers
• Your suppliers had visibility into real time
invoice status
• You could enforce your procurement process
through invoice validation
• You could automate and maximize supplier
discounts trimming millions off your AP spend

7. Tradeshift’s Approach
to E-Invoicing

8. Tradeshift
At Tradeshift we have the ambition to change the way
business is done by allowing organizations to exchange
invoices for free.
We connect businesses to all their suppliers and
customers regardless of company size, not only saving
cost but also ensuring they get paid faster at both
ends of the supply chain.

9. e-invoicing has failed to keep
customers happy*
Only 12%
Said their current solution was very satisfactory.
Efficiency and cost
Are the biggest barriers to becoming a universal solution.
57% agree that adoption would be widespread if it was free
to suppliers.
47% think its pointless
E-invoicing is pointless without widespread supplier
adoption and addressing. These barriers are going to be
key in reaching that stage.
*CFO research across 600 organizations Dec 2011

10. We address the problem with
3 key approaches
1. We make it FREE for suppliers to use
2. We make it EASY and provide many
different channels for suppliers
3. We make it simple and efficient for you to
ENGAGE and MONITOR progress

11. Why e-Invoicing Needs to be Free
• Very rarely is supply chain
adoption over 10% due to high
costs to suppliers
• The “soft” part of the business Where do the
process like phone calls and email costs go?
is typically more than 20% of the
total business cost
• These networks typically get 90%
of their revenue from their
suppliers, this creates a massive
barrier for adoption
• How much cost do you want to
push down the supply chain?

12. How we approach the supply chain
# of invoices Guided integration
(per year) services and self-
service configuration
Plug & Play connectors
to large accounting
systems, self-service
configuration and printer
drivers State of the art invoice
application or CloudScan™
service
# of suppliers
ExistingWeb Portals or
Use of Solutions
Tradeshift Integrated Approach Scanning Solutions

13. The Network Engagement Tool
• Manage your whole
supply chain invoicing in
one tool
• Segmented messaging
for different supplier
groups
• Trigger based
campaigns based on
supplier actions
• Real-time invoice
validation using the
business firewall

14. The Unique Business Model is an Ideal
Platform for Launching Supplier Finance
Programs
Apps:
B2B Applications for Tradeshift
Business documents: communication: extending the Instant
Transmission of quotes, POs, functionality of Payments -
Status
change, messaging, the platform. Supplier finance
e-invoices, credit notes etc.
etc. Used by programs
Tradeshift and
partners

15. Taulia’s Approach to
Dynamic Discounting

16. Today’s Invoice-to-Pay Process:
Banks Benefit – Not Buyers or Suppliers
SUPPLIER
LARGE BUYER Invoice-Net 60 Invoices Buyer
Invoice Approved on Day 10
Buyer earns <1% Suppliers Factors
annual interest until BANK
at 20% APR
due date

17. Status Quo is Ineffective
• Buyers Have Record
Cash as % of Assets
2002 2006 2012
Amounts of Cash 6% 8% >10%
• Typically Invested at 4-Week Interest Rates
2002 2006 2012
Near-Zero Return 1.7% 5% 0.1%
• While Invoices are Days Until Approved Payment
2002 2006 2012
Ready to Be Paid! 20 days 30 Days 45 Days

18. Dynamic Discounting
Represents a Win-Win
• Enables large companies (“Buyers”) to
save money and improve return on cash
by paying suppliers early
• Enables smaller companies
(“Suppliers”) to access less expensive
financing alternatives by accepting time-
variable “Dynamic Discounts”
Imagine…paying your suppliers less and having them
thank you

19. How Does it Work?
Solution whereby 1
Buyer sets interest rates
suppliers are
and activates suppliers
offered early in ERP
payment based on
a discount rate -
set by the buyer
2
Approved invoices are
offered automatically
for Instant Payment
4
Payment schedule
updated in SAP according
to agreed terms
3
Supplier selects payment
date and accepts discount

20. Improving Traditional Discounts
1 2
Make them dynamic Price to opportunity
Sliding scale
discount Supplier Buyer discount
3.0% “Hit-or-miss” discount
credit rating potential
Strong Low
$
2.0%
$
1.0% $
0% Poor High
0 1 2 30
0 Days 0
 Leverages a sliding scale discount  Segment suppliers and price
 Enable the Buyer to realize a discounts to their alternative
discount throughout the entire funding cost
payment period

21. Benefit to Buyers and Suppliers
Buyer objectives
 Treasury – Increase returns on available cash with
Enables corporate treasurers complete control of the program
to generate risk-free double-  Procurement – Scale discounts across 100% of supply
digit returns on available chain and motivate suppliers to complete e-invoicing on-
Buyer
liquidity by paying suppliers boarding
early in exchange for a  Finance – P&L cost savings and accurate cash flow
discount forecasting
 IT – SAP certified solutions enable rapid deployment with
limited drain on internal IT resources
Supplier objectives
Offers suppliers a less  Faster access to cash
expensive alternative to  Cheaper than funding alternatives
Supplier financing by accepting time-
 Helps to meet quarterly targets/bonus targets
variable discounts on instant
payments  More convenient than funding alternatives
 Provides the right incentives for buyer

22. Joint Tradeshift/Taulia
Value Proposition

23. The perfect partnership
• Higher e-invoicing adoption from all supplier
segments due to lower barriers (more channels)
• Faster invoice approval, which increases
potential discount captured
• Maximize discounts in all supplier segments
• Offer suppliers to get paid instantly
• Tools to promote discounting offers to both
active/non active suppliers

24. Business Case
Impact from e-invoicing Impact form Dynamic Discounts
Reduce processing cost in AP Discount spend and pay less
• Eliminate retyping of invoices • Total spend EUR 1bn
(65%) • Accelerated spend EUR 200m
• No error handling of incorrect • Average discount 2%
invoices (20%) • Days accelerated 30
• Reduce supplier requests (15%)
Example Example
Annual cost saving: Annual cost saving:
EUR 300.000 EUR 3.8m (23%)
(total invoice volume 100.000) (assuming 1% offer cost on cash)

25. Q&A

26. Thank You
tradeshift.com/enterprise
taulia.com