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Today we're delighted to welcome a post from Christian Hjorth, CCO at Tradeshift

There once was a time in business when you bought a box, it did what you expected until it became obsolete and then you bought a new one. The key functions of your company were essentially run by equipment and (often-expensive) experts in-house who knew how to get the most from it.

Of course, the cloud has changed all that - and while I’m sure we don’t need to go into the full history of that here, there is one aspect of this shift that is becoming more and more important. When you’re talking about software-as-a-service, it’s nothing without consistent and improving service.

This month, State of Flux, the London based procurement and supply chain consultancy, has launched its fourth annual Global SRM Survey 2012 which is, for the first time, divided into two areas: a buy-side survey to validate the procurement and supply chain perspective and a sell-side survey that captures the account team perspective of SRM. The new approach should provide one of the fairest reviews to date of both the supplier and the customer experiences of current SRM globally.

Many suppliers will offer a discount for early payment. The decision to accept the discount is normally based on two factors. Are you in a position to pay the invoice early? (i.e. are your purchase to pay processes efficient enough to do so) and secondly, the size of the discount. What is not normally considered is arguably the most important factor of all – the mitigation of risk.