what your suppliers really think about you
TRANSCRIPT
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What Your Suppliers Really Think About You
May 20, 2014
Agenda Introduction
Industry Expert Perspective – Henry Ijams, PayStream
Supplier Fees
The Impact on Your Supply Chain
A Better Model
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Introductions
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Henry IjamsManaging Director, PayStream
Rinus StrydomVP Alliances & Solutions Consulting, Tradeshift
Why do Supplier Fees exist?
Supplier
Buyer
Generate network revenue & valuation
for provider
Reduce entry point for buyer
Pass costs to supplier
Add friction to supplier onboarding
Cost of doing business?
Pass fees back to customer
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Fee would be fine if…
They didn’t discriminate against low volume high value invoices.
They were a standard, low fee per invoice
No free einvoicing options existed
But NOT when directly tied to the invoice value!
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PayStream Advisors, 2013
Supplier participation is key to transformation
Number 1 Barrier to e-invoicing
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Buyer’s More Weary
Key factors when selecting a Supplier Network
Facilitates electronic payments
Global reach of network
Industry focus of network
Transaction costs (buyer)
Transaction costs (seller)
Number of existing suppliers on the network
26%
26%
27%
32%
38%
39%
©Ardent Partners - 2013
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Suppliers = Partners
Traditional View of Suppliers
New View of Partners
• Suppliers are there to provide goods/services as needed• Interactions with suppliers are kept to a minimum• Leverage is key to value• Price, price, price• Contracts and SLAs are the primary management and
communication tools
• Suppliers are a great source of knowledge, insight, expertise
• Our success is tied to that of our suppliers• Collaborating with suppliers is valuable on multiple fronts
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Tradeshift’s balanced value proposition
Supplier Buyer
Communicate & collaborate directly with your buyers.
Lower costs for your entire supply chain.Manage and track POs, invoices, and more.
Connect via web, integration or any accounting software.
Free. No supplier fees. Ever.
Communicate and collaborate with suppliers.Innovate past invoicing on top of an open platform.
One platform for all your business needs.
Reduce cost and friction for your entire supply chain.
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# of invoices
Size of Suppliers
# Of suppliers
Large Medium Small
Non-invasive eInvoicing options
Supplier Integration
Supplier Integration Supplier Integration
Supplier Validated CloudScan
Supplier Validated CloudScan
Web ApplicationPlug & Play connectors
Plug & Play connectors
Plug & Play connectors
CloudScan EnterpriseCloudScan Enterprise
CloudScan Ent.
CloudScan with AP validation
CloudScan with supplier validation
Web Application
Supplier Integration
Plug & Play connectors
Supplier Integration
Plug & Play connectors
Plug & Play connectors
Supplier Integration
100% (invoice volume)
100% (suppliers
)
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Keys to supplier participation
• Free to use
• More than a “portal”
• Value-added Apps
• Enterprise-driven
• Multiple on-ramps; CloudScan
• Supplier-to-supplierMulti-way onboarding
Easy to use
Provides real value
• Multiple integration options
• Cloud-based; no on-site installation
• User-friendly and mobile-optimized
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Tradeshift’s Open Platform Approach
TRADESHIFT PLATFORMDocument Transmission, Statuses, Messages, Integration, Security, API
SupplierBuyer
Order Management
Electronic Invoicing
Business Firewall
CloudScan® (Paper)
Collaborative Workflow
Financial Solutions
Build Your Own App
Supplier Management
Ability to expand functionality as needed
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#tradeshift
Offering the value to your entire supply chain
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