Thanks to the recent increases in supplier fees by our competition, we have seen a marked increase in interest from large buying organizations who are researching alternative solutions that do not charge suppliers” comments Markus Ament, Taulia’s SVP of Products and Solutions.“Taulia is one of the beneficiaries of this trend. We are positioned as a service that is and remains free for suppliers while providing an immediate ROI to buyers.”According to a June 10th report from Spend Matters, Ariba will be increasing supplier fees by 55% starting September 2010. Based on interviews with affected customers, the report concludes that “many of these customers are unhappy with the increase, fearing suppliers will inevitably raise prices to cover the costs, either directly or indirectly.” The report further quotes solution provider Hubwoo who emphasize the benefit of a free model as “much faster supplier adoption for large projects, by avoiding the supplier contract and payment process”. In its analysis Spend Matters also sees some potential supplier/buyer defections from the network triggered the fee increases, but estimates that such defections will remain a minority. Earlier this year it became public that J.P.Morgan has started introducing supplier fees for services that were previously free of charge.
The Taulia business model strongly differs from the competition. Not only is it free for suppliers, but it also requires no investment from the buyer. Instead, Taulia accepts as compensation a small part of documented and realized savings resulting from improved discount management.
See the official press release.