In our live presentation with Coca-Cola Bottling, Accounts Payable Manager, Steve Richards discussed how he overcame challenges the payables department faced prior to implementing an eInvoicing, dynamic discounting and supplier-self services solution.
First, they couldn’t keep track of invoice location and status. When a vendor would send a paper-based invoice to one of the Coca-Cola Bottling branches, Steve and his team couldn’t track it down or find out whether it was approved or not. At the time of month-end close, a big payables question mark remained in the liabilities section of the balance sheet.
Second, submitting invoices into their ERP was a lengthy, manual process. Upon receiving a paper invoice, they had to scan each individual invoice, adding hours of labor each day.
“Technology is so advanced...there’s a whole lot more that [Payables Departments] can do than just getting rid of paper.”
Furthermore, because the time to approve and pay an invoice took weeks, Coca-Cola Bottling frequently missed out on early payment discounts.
Support Tickets: The pairing of an intuitive supplier portal and a responsive portal support team resulted in an average of only .004 support tickets submitted per supplier. In other words, suppliers became more self-sufficient and the Payables Department spent significantly less time and resources answering invoice inquiries.
Invoice Transparency: The auditors can no longer count on the Payables Department for any deficiencies, and the payables team had complete control and visibility of all incoming invoices.
Supplier Adoption: After sending out personalized invitations to their suppliers that explained the benefits of the portal, 87% of invited suppliers enrolled within the first 6 months. Of those enrolled suppliers, 90% are active portal users, resulting in less paper invoices, higher operational efficiencies and more savings in early payment discounts.
Dynamic Payment Terms: When taking advantage of dynamic discounts, every day counts. For your suppliers who aren’t necessarily behind a computer all day, Dynamic Payment Terms is the answer. For a set of strategic suppliers, invoices are now paid as soon as they are approved. Coca-Cola Bottling receives the highest discount possible and suppliers will get even faster access to cash.
Questions From the Audience
- How do you protect your cost of goods when an early payment discount is taken from a supplier?
- Do you notice prices increasing after suppliers get paid a little bit less?
- How do you make sure suppliers will accept the invitations for dynamic discounting or dynamic payment terms?
- Are any clients using ERPs other than SAP, like Oracle?