Our research shows that organizations that recognize having a dedicated supplier onboarding system as the foundation of an effective supplier management system reap massive downstream benefits.
Henry Ijams of PayStream Advisors and Vishal Patel of Tradeshift review the latest research on supplier onboarding, as well as a few truly impressive supplier onboarding processes utilized by early innovators.
6. Research and Advisory Services
for Financial Operations
o Collections Technology
o Receivables Document Management
o Benchmarking
o Electronic Payments
o Annual Innovate Summit
6
7. www.paystreamadvisors.com
Agenda
• The Current State of Supplier
Adoption
• Proactive Supplier Onboarding
• Tradeshift Supplier Network
Management Solutions
• Supplier Onboarding Success
Stories
9. The Current State of Supplier Adoption
Source: PayStream Advisors AP & Working Capital Report | Q2 2014 | All rights reserved.
Primary Reasons for not Utilizing Electronic Payments
9
11. The Current State of Supplier Adoption
Source: PayStream Advisors 2014 Supplier Network Management| Q4 2014 | All rights reserved.
Business-to-Business Solutions Currently in Use
11
12. The Current State of Supplier Adoption
Source: PayStream Advisors 2014 eInvoicing Benchmark Report | Q3 2014 | All rights reserved.
Invoices Paid Electronically
12
13. The Current State of Supplier Adoption
Source: PayStream Advisors 2014 eInvoicing Benchmark Report | Q3 2014 | All rights reserved.
POs Sent By Companies
13
14. The Current State of Supplier Adoption
Source: PayStream Advisors 2014 eInvoicing Benchmark Report | Q3 2014 | All rights reserved.
Suppliers Sending eInvoices
14
18. Proactive Supplier Onboarding
Ø Offer suppliers a range of options. Offering
yes or no options likely will not get you
anywhere with most suppliers.
Ø Consider what is ideal for your organization
but also what is likely; try to land somewhere
in the middle.
Source: PayStream Advisors AP & Working Capital Report | Q2 2014 | All rights reserved.
Best Practices
19. Proactive Supplier Onboarding
Ø Effectively communicate to suppliers the
benefits for their receivables with each offer.
Ø Incentivize suppliers by offering tiered
payment timelines. Offer faster payments
for methods that benefit your organization
and longer payments for manual or paper-
based methods.
Source: PayStream Advisors AP & Working Capital Report | Q2 2014 | All rights reserved.
Best Practices
20. Proactive Supplier Onboarding
Ø Does the solution integrate with your ERP or
procurement system?
Ø Is the solution free for suppliers (no
membership or transaction fees)?
Ø Does the provider help onboard your
suppliers—both large and small?
Source: PayStream Advisors AP & Working Capital Report | Q2 2014 | All rights reserved.
Selecting a SNM solution
21. Proactive Supplier Onboarding
Ø Does the solution have a centralized
portal to manage supplier profiles,
certificates, diversity, and risk metrics?
Ø Is ad-hoc and custom reporting
functionality included in the solution?
Selecting a SNM solution
22. Proactive Supplier Onboarding
Ø Is buyer and supplier training included?
Ø Does the network facilitate the transmission
and routing of purchase orders?
Ø Does the solution provide electronic
invoicing?
Selecting a SNM solution
24. Transforming how businesses work
together.
Tradeshi0
helps
buyers
and
suppliers
anywhere
connect,
transact
and
collaborate
with
e-‐invoicing
and
procure-‐to-‐pay
so0ware.
25. Easy
to
use.
Free
for
suppliers.
Tradeshi0
brings
you
intuiCve,
agile,
scalable
cloud
so0ware.
We
strengthen
buyer-‐supplier
relaConships
through
the
power
of
our
network,
our
proven
supplier
onboarding
methods,
and
our
scalable
plaGorm
&
app
ecosystem.
26. Electronic
invoicing,
PO’s,
Credit
Notes,
etc
Data
Capture
(Paper,
PDF,
Fax,
Email),
Onboarding
tool
Matching,
ValidaCon,
Approval,
RouCng,
Coding,
Direct
CommunicaCon
Supplier
RegistraCon,
Onboarding,
InformaCon
validaCon
&
management
Extension
of
capabiliCes
with
customer
and/or
Third-‐party
Apps
Early
Payment
SoluCons
Dynamic
DiscounCng
&
Supply
Chain
Finance
Buyer
–
Supplier
Network
Business
Firewall,
Document
Transmission,
Statuses,
Messages,
IntegraCon,
Security,
API
31. Tools to onboard suppliers: info on your own site
Example: http://www.sbs.nhs.uk/home/working-with-suppliers
32. Various product events drive supplier onboarding
Receiving Purchase Orders Sending PDF invoices as email attachments
From scanned paper invoices Supplier initiated connection request
40. 1. World’s largest healthcare provider: 75X FASTER
THAN leading competitor
• Prior to Tradeshift, only 100 suppliers were
electronically onboarded by a leading
competitor over 4 years
• Tradeshift has already onboarded 2,794
suppliers in 18 months
41. • Phase one: from zero to 48% of the 3M
invoices in scope
• 1.4M invoices now received
electronically
• 33% of the labor time in scope has been
reduced
• 21 of 63 FTEs handling invoices were
redeployed
• Invoice handling increased from 4,000 to
6,000 per person, per month
2. Global logistics provider: 0% TO 48% E-INVOICES
42. 3. World’s largest sports apparel brand: 36X faster than
leading competitor
• Prior to Tradeshift, 8% (350) of North
American suppliers (4,400) were
onboarded by leading competitor over 4
years
• Tradeshift has already onboarded 94%
(4,176) of the suppliers in 16 months
• Full scope of 5,000 workflow users are
already live after 7 months
• On track for total business case savings
of $30M, with additional risk avoidance
savings TBD