On November 12th, Ankita Tyagi of the Aberdeen Group joined forces with Joe Hyland, Chief Marketing Officer of Taulia, to present the true benefit of driving automation across the entire supply chain.
The webinar highlighted key findings by Aberdeen on Best-in-Class, Industry Average and Laggard companies on their financial visibility and strategy for Supply Chain Finance. Companies were categorized based on three Key Performance Indicators: time to process invoice, cost to process invoice and early-payment discount capture rate.
Companies are facing challenges that involve managing paper-based documents, reconciling accounts and payments in a timely manner and ensuring financial visibility. There is a clear gap between the performance of Best-in-Class and Laggards, but as a whole, there is a lot of opportunity for growth for all companies in each tier.
Effective and efficient Supply Chain Finance is a result of collaboration and participation from both buyers and suppliers. Suppliers must be actively engaged in the portal with an understanding of the benefits of electronic invoicing, self-services and information management in order for dynamic discounting to be most successful. Buyers reap the benefits of reduced time to process invoices, less supplier inquiry calls, full financial visibility, and millions added to their bottom line through dynamic discounting.
Best-in-Class companies not only encourage and communicate with their suppliers, but they also integrate SCF initiatives effectively by getting all departments on board with these different solutions. As a result, Laggards take up to 12 days longer to process an invoice from receipt in AP through approval and average cost to process each invoice is up to $17 more than Best-in-Class. While the results are dramatically different across each tier, the Best-in-Class discounting capture rate still sits low at 67%. Results depend on supplier enablement best practices, implementation and dynamic discounts offered, therefore there is no one solution that fits all companies.