This piece was originally published on spendmatters.com.
JASON BUSCH - March 21, 2013
As a stand-alone capability, dynamic discounting often plays second fiddle to eProcurement and invoice automation/e-invoicing investments. Yet the dynamic discounting tools sector has been around for more than decade, dating back to the somewhat early days of req-to-pay technology. Often confined to treasury and accounts payable – and a limited sub-set of suppliers – most dynamic discount deployments rarely take advantage of existing procurement and supplier management investments and strategies, let alone broader procurement and finance collaboration.
Taulia is an upstart dynamic discounting vendor with tight linkages into SAP environments. They’re already changing the perception of dynamic discounting inside many organizations, some that already invested in first generation solutions such as Xign without the level of supplier adoption they had hoped for.
Now, Taulia, once again, is stirring up the accounts payable, treasury and procurement pot with its latest offer: a guarantee of $1MM in dynamic discount savings capture in the first year of implementation.
Spend Matters believes that Taulia’s new guaranteed savings program is based on the measurable impact dynamic discounting can have. In contrast to “guaranteed” savings programs sometimes offered in category sourcing or procurement BPO areas, there is no disputing cost baselines, budget impact, or bottom-line results based on program returns.
This announcement will help showcase dynamic discounting’s potential to bring material savings for companies, calling attention to a cause that finance and procurement executives alike should come together more frequently on. Better visibility into liabilities, forecasting and overall AP efficiency is just the icing on the e-invoicing and discounting cake. Savings should come first and guaranteed programs will bring attention to the potential.