Want to sap the strength out of your supply chain? Charge your suppliers portal fees.

January 5, 2015 Chris Cauley

supplier fees

We’ve talked a lot about how to get the highest portal adoption rate possible from your suppliers from the start of implementation, and how to keep the momentum going thereafter. Today we’re going to talk about how to guarantee low portal adoption and engagement.

Typically, new Taulia customers fall into three different buckets:

  1. They have a lengthy, manual payables process

  2. They have an outdated homegrown P2P solution

  3. Their existing portal solution charges fees

While none of these are ideal situations to be in, the most detrimental of all--especially to your company’s profitability and supply chain resilience--is charging your suppliers portal fees.

To state the obvious, your suppliers see no logic in paying a fee just to submit an invoice to your company. You already know supplier adoption for the portal is the key to maximized ROI.  When you charge your suppliers fees, you’re essentially offering a reason to not use the portal, and potentially discontinue a partnership with you.

And more so than not, your suppliers will find ways to make up for the costs, often by raising their prices. Sure, you could charge a variable fee based on the dollar amount of the invoice in hopes of preventing cost increases, but is that a strategic move to keep your supply chain resilient?

While some supplier fees may seem nominal from a high level, they add up over time.

After all, your business relies on your supply chain. A recent report by the Department of Commerce revealed companies experiencing supply chain disruption reported 33%-40% lower stock valuations relative to their peers and more share price volatility in the aftermath. 

Beyond these costs that add up for both parties, the problem goes deeper.

The relationships you have with your suppliers immediately becomes one-sided rather than a bi-directional win-win situation.

In a simple, real-life example, charging supplier fees is like hosting a dinner party and charging your friends for eating your food:

When you take control of your supply chain, you can finally achieve the results you were promised. In these three 1 minute videos, you’ll see a new perspective on how eInvoicing fees and other business practices negatively impact you and your supply chain.

Don’t let low portal adoption affect you any longer. Find out more here.

About the Author

Currently living in Boulder, Colorado and working as a Senior Director Solutions Consulting for P2P automation and Dynamic Discounting industry leader, Taulia Inc. Twenty years experience in P2P & OTC solution consulting and implementation analysis, including solution analysis/design, business case/ROI modeling, project management, sales/bus development and product management roles.

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