ap – a catalyst for p2p transformation

AP – A Catalyst for P2P Transformation

Agenda

State of Accounts Payable

Paradigm shift in the AP Role

Administrator

Collaborator

Strategic business unit

The new world of P2P

Straight Through Processing

Rip off the Scanning Band-Aid

Mobile

Supplier Relationship Management

Working Capital Management

Top Priorities for AP

Need to improve days payables outstanding (DPO)

Need to improve visibility into invoice/payment data

Need to reduce invoice/payment related errors

Need to improve collaboration (internal & external)

Need to improve processing efficiency

Need to migrate off paper-based processes

13%

17%

19%

24%

44%

52%

©Ardent Partners - 2013

Operational Capabilities with AP

Standardized AP processes

Working capital optimization

policies

Measurement of key AP metrics

Linkage across P2P process

79%

48%42%

32%

17%28%

36%43%

Currently Exists Plan to Implement


Why P2P is Key…

Analyze Spend

Source

Contract

ProcureReceive

Invoice Processing

Payment

Support the business by: Managing enterprise spend Ensuring the right goods and services

are purchased at the right price Identifying (and managing) the

highest-value suppliers Manage transactions and compliance

Also focused on: Supply Risk Savings Optimize working capital Supplier Relationships

P2P

Top 10 Benefits of a Holistic P2P Process

Better identification of sourcing

opportunities

Improved contract compliance and a

reduction in maverick spend

More spend under management

Greater automation, visibility and control

across AP

Reduction of exceptions / errors

and improvement in processing efficiency

& cycle time

On-time payments suppliers (or early).

The ability to track supplier performance

The ability to measure and improve

departmental performance and customer service

The elevation of AP from a back-office

function to a strategic component

Significant working capital and discount

savings.

Agenda



Administrator

Collaborator





Mobile

Supplier Relationship Management


Paradigm Shift Occurring with AP

Administrative

• Manual tasks• Data Entry• Repetitive • Tactical• Inefficient• Outdated

• Efficiency/visibility• Value-add• Supporting• Knowledge sharing• Data• Automation• AP Clerks AP Analysts

CollaborativeStrategic Business

Unit• Collaborative• Intelligence / Analytics• Performance Driven• Procure-to-pay• Working Cap Optimization• Supplier Management • Treasury/Procurement Insights

Collaboration, Not a Trend

AP & Tre

asury

AP & Pro

cure

ment

AP & Li

ne of busin

ess

AP & Supplie

rs

71%59% 52% 49%

29%41% 48% 51%

Good Collaboration Poor or No Collaboration©Ardent Partners - 2012

This is what your AP operation can do…

Metrics Best-in-Class All Others

Cost to Process an Invoice $2.20 $13.10

Number of Invoices Processed per FTE per month 3,559 1,335

Percent of Invoices Processed Straight-Through 44.2% 18.4%

Percent of Suppliers that Submit Electronic Invoices 41.8% 14.5%

Average Time to Process an Invoice 3.3 Days 13.5 Days

Paid On-time Percentage 91.4% 70.8%


Agenda



Administrator

Collaborator





Mobile


Today’s world is about flexibility and extensibility

Supplier Registration

Supplier Financingwith CapitalAid

Latin America Compliancewith Invoiceware

Tradeshift’s Open Platform Approach

TRADESHIFT PLATFORMDocument Transmission, Statuses, Messages, Integration, Security, API

SupplierBuyer

Order Management

Electronic Invoicing

Business Firewall

CloudScan® (Paper)

Collaborative Workflow

Financial Solutions

Build Your Own App

Supplier Management

Ability to expand functionality as needed

Invitation to send invoices electronically

Join Tradeshift

Create invoice using Tradeshift

Web AppInvoice

transmitted electronically via TradeshiftCreate invoice

using existing accounting

tools

Email invoices

Invoices converted to

electronic format

Invoice details validated by

supplier

Paper Invoices

Invoices converted to

electronic format

Invoice details validated by AP

staff

Invoices with

exceptions are

flagged

Tradeshift CloudScan

PAPER

Electronic Supplier Enablement Benefits Everyone

# of invoices

Size of Suppliers

# Of suppliers

Large Medium Small

Scanning is a Band-Aid. Rip it Off!

Supplier Integration

Supplier Integration Supplier Integration

Supplier Validated CloudScan

Supplier Validated CloudScan

Web ApplicationPlug & Play connectors

Plug & Play connectors


CloudScan EnterpriseCloudScan Enterprise

CloudScan Ent.

CloudScan with AP validation

CloudScan with supplier validation

Web Application







100% (invoice volume)

100% (suppliers

)

CloudScan: Supplier validation of invoices

CloudScan: AP validation of invoices

All items CloudScan Escalation Code Approve Supplier Requests

Collaborative Workflow – Internal and External

Supplier Management – for AP & Procurement

Streamline supplier onboarding process as part of Tradeshift platform and workflow process

Integrate with Dun & Bradstreet, IRS and other 3rd party data sources to validate supplier authenticity

Extend your corporate brand to the supply chain process

What’s the top incentive for suppliers?

Get paid on time…or even early!

Working Capital Optimization to Better Supplier Relationships

Seamless integration to Tradeshift platform and multi-pronged onboarding makes for fast adoption of suppliers

Tradeshift mobile workflow increases captured discounts

Match suppliers to the right program: Dynamic Discounting, SCF products from Citibank and other finance options

AN IDEAL PLATFORM FOR LAUNCHING EARLY PAYMENTS

Suppliers are arm-wrestling DPOs with the

Buyers …

… And at the same time financing is a scarce

and expensive resource …

Today’s Payment Reality

Alt

ern

ati

ve f

undin

g c

ost

SC

F

# suppliers

Payablevalue

Alt

ern

ati

ve f

undin

g c

ost

Bu

yer

cen

tric

# suppliers

Payablevalue

Su

pp

lier

cen

tric

Bu

yer

Oth

er

Offering the value to your entire supply chain

Dynamic Discounting Should be Easy

$2.1M savings for every $1B spend. That’s Strategic.

Process Automation

■ Eliminate paper invoices, reduce invoice approval cycle time, and improve visibility and overall AP processes

Supplier Management

■ Shared supplier portal enabling suppliers to view and resolve invoice exceptions and reduce supplier inquiry calls

Early Payment Discounts

■ Discount program management and dynamic discounting resulting in increased discounts and >20% return on cash

Typical Business Case

Eliminate manual process of checks and invoices

Increase early payment discounts

Reduce Supplier support inquiries

Saving of $5 per invoice achieved through migration from a paper to an electronic method, and assume 90% adoption of 100,000 invoices resulting in savings of $450,000 per year.

Assume a 15% reduction in the invoice exception rate at an additional $10 per exception which results in savings of $150,000 per year.

Assume 10% discount penetration earning a 1.5% discount rate for a$1.5M benefit…growing to $3M with an automated technology platform.

$450K

$1.5M

$150K

$2.1M

Total estimated benefit

$1.5M

2X increase in early payment discounts with additional WCO services

“So impressed. Works beautifully.” “Tradeshift is awesome and free to use!”Selina Smith, Graphic designer in

Ottawa@selinalsmith

Clint Tabone, Freelancer in Malta

@clinttabone

Robb Sullivan, home theater designer in HoustonCustomers include Jennifer Lopez and Jay Z

@AVAdvice

“Tradeshift rocks!”

Thank You!

ap – a catalyst for p2p transformation

Business

elevation of ap

ap operation

standardized ap processes

supplier performance

collaboration ardent

invoicepayment data

p2p transformation

new world of p2p straight