Dynamic Discounting

I was delighted when I heard a few weeks ago the news that was made official this week that Nigel Taylor has joined Taulia. It's great news for Nigel and great news for Taulia. Nigel moves from GXS where he led the marketing, business development and strategy of their eInvoicing solutions but I got to know him through his chairmanship of the UK National e-invoicing Forum. He’s won a great deal of respect in that chair role where he’s been able to steer the delivery of some excellent thought leadership from the group. He also represents the UK at the European Commission’s forum on eInvoicing and is an executive committee member of the European eInvoicing Service Providers’ Association.

For those who don’t know them, Taulia offer one of the most compelling supply chain finance offerings around. Based on the simple concept of dynamic discounting – exchanging early payment for a discount – they help buyers and suppliers alike to better manage the cash - and the risks – in the supply chain. They have seen some amazing growth in the last few years, mostly in the United States, but now with a key appointment in the UK, they’re hoping to position themselves to do the same in Europe.

Taulia has a world-class product that gives customers a high return on their cash balances while putting affordable working capital in the hands of suppliers. Dynamic discounting is a simple model and very effective but Taulia have always had one big problem – they only serve SAP customers. Because their dynamic discounting solution is native to SAP, there’s a huge market that they simply can’t access. But now there’s a team that can access the non-SAP market – they’re called Taulia.

Taulia, the only SAP-certified SaaS platform for dynamic discounting, today announced Hallmark will provide its global supply base with Taulia’s comprehensive suite of services, including e-invoicing, dynamic discounting and supplier self-services. The largest and most successful greeting card brand in the world, Hallmark has long been a technology leader in bringing innovative products to consumers. The company wanted to extend that leadership by providing its suppliers a unique value proposition - comprehensive e-invoicing and self-services, delivered by a dedicated on-board team at no cost to suppliers.

Like many readers, I have met many suppliers who struggle to manage cash flow. And I’ve met companies that rely on third party finance solutions to fill the gap. They all have one thing in common – they are not happy people. I would challenge you to produce a photograph of an AR team with smiles on their face – without using Photoshop!

Some companies in our industry might encourage you to “hurry up” while you’re in the procurement phase but maybe it’s because there’s something they don’t want you to stop and think about. For example, the question of business models. In what we do, you have two options. The first is pretty simple: make your money from enterprises in proportion to the value you create for their business. That means putting in a solution that makes their supply chain more efficient and accompanying it with the processes and technology that makes suppliers want to use it too. The second is a bit more old-fashioned, a bit less elegant, indeed, somewhat parasitic. This way involves using the enterprises you’re supposed to be helping as a direct sales route to their suppliers, where you’ll make most of the money. Basically turning your customer into your sales channel and pushing the majority of the financial burden down the supply chain to the guys it’s going to hurt most.