1. CFO in the Cloud
Tuesday, 24th April 2012
Copenhagen

2. “Don’t think about electronic invoicing as your goal, it is
about automating your accounts payable processes
where there is true collaboration and automation, then
they can contract timescales and renegotiate payment
terms. 2012 is the year for e-invoicing.”
Pete Loughlin, Purchasing Insight

3. Today’s Agenda
E-Invoicing Manifesto: Results of the survey
CFO in the cloud: Tradeshift business model, free e-invoicing, universal
activation, and the network effect. NEW: Tradeshift CloudScan ®
Tradeshift Instant Payments: Supply Chain Financing
Questions & Close

4. About 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
time but also ensuring they get paid faster at both
ends of the supply chain.

5. It is proven
• In less than 18 months Tradeshift has spread to 190 countries
• Gained more than +90,000 companies
• Today Tradeshift is the fastest growing business network with
more than 2000 companies joining each week
• Customers include:

6. E-Invoicing
Manifesto

7. Four Key Findings
1. Business is increasingly tough
2. Invoicing puts a massive strain on
a finance department
3. E-Invoicing has failed to offer a solution
4. E-Invoicing is ready for the

8. Business is increasingly
tough

9. Pressure & Supplier Relations
Pressure
The majority (65%) of financial decision
makers said they are now under
greater pressure than ever to manage
costs.
Supplier Relations
78% said they are very important to
their business and 72% said they are
even more important because of the
economic outlook.

10. Business is increasingly
tough
Heart of the organization
74% of finance decision makers
reported that an inefficient finance
department is a threat to the
businesses as a whole.

11. Invoicing puts a massive strain
on a finance department

12. Finance inefficiencies
421,000 invoices
Are processed by large businesses
on average every single year.
48%
Of these invoices still have to be
scanned or input manually.
Total of 202,080 invoices
Equal to 48 employee hours per week.

13. E-Invoicing has failed to
offer a solution

14. 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.

15. Finance is ready for the
revolution

16. Finance is ready for
transformation
60% Social media
Think social media could be used in
their department to improve
relationships with customers and
suppliers.
48% P2P processes
Think that P2P processes will move to
the cloud in the next year.

17. Summary

19. CFO in the cloud
Tradeshift Business Model

20. The cost of one piece of paper
On average it takes 24 minutes to process one paper invoice, costing from
11€ to 31€ each
10% of all invoices issued contains mistakes, 10% to 40% of invoices are
disputed and 96% of all companies have re-issued invoices the last year
On average companies get a phone call for every 1 out of 10 invoices with the
most common question “Have you received my invoice?”
Paper is out of sync. It typically takes more than 5 days before paper invoices are
registered and up to 14 days before they appear in management reports
12,000 paper invoices cost the environment 57.6 trees, 14.4 tons of Co2
and 180.000 liters of water

21. So this is a huge problem, why hasn't it
been solved?

22. The history of business document
exchange
Tradeshift goes viral, becomes worlds fastest growing business network with more than
2011
90,000 companies in 190 countries
Tradeshift is launched as the worlds first business cloud mixing financial
2010
transactions and social network functionality
Tradeshift founders works with the European commission to
create cross-border standards for e-business in Europe 2008
Tradeshift founders launch worlds first free e-business network, 10
months later 25% of all Danish companies have joined 2007
First pure electronic invoicing
networks appear 2002
First internet trade portals appear with
1998
limited success
Scanning and OCR become a solution outside
EDI, but still very error prone 1995
Electronic data interchange takes off
1990
among very large companies
Invoice printing gets
automated 1950

23. Facts about existing networks
• Very rarely is supply chain adoption High supplier
over 5-10% due to high costs to costs
suppliers
• The “soft” part of the business Vendor
Low
adoption
process like phone calls and email is lock-in
Where do the
typically more than 25% of the total costs go?
business cost which are not covered
by the existing networks
Supply chain
• These networks typically get 70%+ pressure Poor business
case
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?

24. We believed it was time to take a fresh
approach, to do something completely
different.
That’s why we created Tradeshift.

25. Our business model
Free transactions
increase participation
Which reduce cost
Which increases the
and increase value
network effect
for both suppliers
and customer
Creating better supply And increase the
chain relations customer business case

26. Why Tradeshift is different
• There are no barriers to join, all
companies can sign up and start
using Tradeshift for free.
• You connect with companies just
like you connect with colleagues
on LinkedIn
• Buyers and sellers can interact
and collaborate real-time
• They can extend all business
processes by installing or
building their own apps
• Companies are inviting other
companies to join the network as
everybody gets value from
participating

27. Tradeshift is Viral

28. The Tradeshift
Business Cloud

30. Imagine that you never had to
receive a piece of paper again

31. We did… and we called it
Tradeshift CloudScan

32. What is Tradeshift CloudScan
• It’s an automatic cloud based OCR service that can
read anything
• It is seamlessly integrated with Tradeshift’s business
network, no separate products to configure or install
• It uses the network to ensure that all handling of
exceptions happens on the supplier side, which
means no work for the buyer

33. How does Cloudscan work?
1. Tell your suppliers to send all invoices as PDFs or pictures to bigco@cloudscan.ts.tt

34. How does Cloudscan work?
2. Before the invoice can be delivered to BigCo the supplier needs to provide the missing data.

35. How does Cloudscan work?
3. The CloudScan service will automatically convert the documents into XML and create a
Tradeshift account for the supplier where they then are able to validate their invoice

36. How does Cloudscan work?
4. The supplier are guided through the process of filling in the missing data - Based on BigCo’s
business rules

37. How does Cloudscan work?
5. When the supplier has validated the invoice – they press validate and Tradeshift delivers it
converted into a 100% pure e-invoice

38. How does Cloudscan work?
6. The supplier is offered (free of charge) to join the Tradeshift network

39. How does Cloudscan work?
7. We guide them through in very easy steps which enables them to send 100% pure e-invoicing
via the Tradeshift network

40. Respected Comments
“It's supplier onboarding without the
pain of onboarding. How novel!”
March 8 2012, Jason Bush – Spendmatters.com
There’s a little bit of genius behind
Tradeshift’s CloudScan.
March 7 2012 Pete Loughlin– Purchasing Insights
Today, Tradeshift launched CloudScan®. It is a
superb piece of technology and process
innovation that takes the concept of the hybrid
model of e-invoicing to the next level.
March 6, 2012 Pete Loughlin– Purchasing
Insights

41. Tradeshift Instant
Payments
Presentation for CFO in the cloud
Copenhagen 24th of April 2012
Lars Rolf Jacobsen
VP Financial Solutions
lrj@tradeshift.com

42. The problem we want to solve
Arm-wrestling DPOs with the Buyers… Financing is a scarce and expensive resource…
 Buyers and Suppliers have a conflict of interests  SME’s lack access to affordable financing
 Working capital optimization based on own  Banks reduced corporate lending and overdrafts
interests due to the financial crisis / debt crisis
 Buyers funding cost typically lower than suppliers  SME’s insufficient liquidity reduces growth and
increases bankruptcy risk
 Transferring working capital from Buyer to Supplier
decreases value holistically

43. Instant Payments product portfolio
Enterprise driven solutions Non-enterprise driven solutions
Supply Chain Finance Receivable exchanges  Additional funding source
 Supplier funding  Increase DPO’s and release  Supplier are offered  Approvals and ratings provided
based on Buyers working capital to sell invoices at 3rd Tradeshift reduce funding cost
credit rating  E-invoicing adoption party marketplaces
 Funded via bank
Dynamic Discounting TS Instant Payments  Additional funding source
 Supplier funding at a  Increase return on excess  Supplier are offered  Data driven approach can
discount decided cash position Instant Payments of reduce funding cost
by the buyer  Price to opportunity selected invoices  High convenience
 Buyer funded  E-invoicing adoption
P-cards  Reduce cost of AP handling
 Tradeshift acts as  Kick backs
Master Merchant for  E-invoicing adoption
suppliers
 Buyer pay via pre
approved p-cards

44. Tradeshift Instant Payments at a glance
 Suppliers rely on bank financing, which is scarce and expensive
 Large corporations reduce working capital by forcing Suppliers to extend payments
Instant Payments
terms (avg. DPOs are now 51 days)
creates value
 Instant Payments reverse the destroyed value by offering suppliers to get approved
receivables paid instantly at a competitive discount (win/win)
 Buyers can reward reliable Suppliers and create further incentive for them to join e-
invoicing
Benefits both  Could serve as a tool for improving Buyer’s DPO’s and reduce working capital - without
Buyers and destroying value for the suppliers
the Suppliers  Could create a risk-free investment opportunity to Buyers at attractive rates of return
 Suppliers get access to vital working capital funding by adding an additional funding source
– easy operated in the Tradeshift user interface
 The e-invoicing on boarding provides an ideal opportunity to launch Instant Payments
Makes good  Campaign driven approach to e-invoicing allows a reach, which is second to none
sense to launch
 Addressing the entire supply chain (not only the top 1-2%)
together with e-
invoicing  3rd party funded supplier funding can be provided via a bank independent platform
 No separate portal and fully integrated in e-invoicing product

45. The Supplier can easily claim the
money instantly – on a case by case
basis…

46. Onboarding process can be implemented
in existing 3 step flow
Pre-activation communication Activation Non-activated reminders
Launch Email
The web
suppliers 1) Register Launch mail not opened
Email 1 Email 3
Pre-launch landing page 2) Connect Registration incomplete
Information campaign
2
Integration 3) SCF activation Paper invoice sent
suppliers Webinar 1 Webinar 2
Webinar 1 Webinar 2
(Commercial) (Technical)
Marketing and sign-up for program
integrated in awareness campaign
and sign-up flow

47. Illustrative Supplier onboarding flow
1
2
3

48. Launch Instant Payments with Tradeshift
 Optimize working capital and increase the return on excess cash
 Improve supplier relationships and support their funding needs
 Reduce costs and increase efficiency in payment processing
 Increase e-invoicing adoption across the entire supply chain by offering Instant
Payments

49. Questions & Close

50. Thank you