Dynamic Discounting Tag

This week we are delighted to welcome Torsten Budesheim Director of Marketing at Taulia as a guest blogger. --- Recent surveys confirm that e-invoicing has finally reached the early majority of users in the technology adoption life-cycle. Paystream Advisors, in a late 2010 survey found that 40% of their survey participants had plans to adopt e-invoicing. This all looks very promising and should help Accounts Payable (AP) organizations around the globe increase operational efficiencies and at a minimum, realize savings from reduction of the time spent for data entry and exception handling.

Taulia, Inc., the leading cloud-based dynamic discounting solution provider for SAP®, today announced that it has acquired billFLO.  billFLO helps small businesses monitor cash flow and identify liquidity gaps by automating the accounts payable, accounts receivable and expense reporting processes.  The combined company turns the conflicting cash flow needs of large buying organizations and their smaller suppliers into a win-win with its cloud-based financial supply chain solution.

I knew somebody a few years ago who ran a small, very successful business. When it came to negotiation he had a unique closing technique. Right at the end, when contacts were to be signed and hands shaken he'd go along to the final meeting with a briefcase and before he signed the contract he'd ask for one final reduction in the price. The reaction was predictable. After weeks, perhaps months of selling, discussing and fine tuning the deal, to be asked for a further discount on top of what was already agreed, the seller would invariably be perplexed and disappointed. Then the briefcase would be opened. Cash. The full amount in cash, now, if they'd take the revised offer. Did they accept the offer?

Supply chain finance generally and dynamic discounting in particular has been has been featured quite heavily in Purchasing Insight. It's not an entirely new concept but in the last year or so it has gained a great deal of traction as a means of getting a real and significant commercial return by being clever with the way invoices are settled and this week, Purchasing Insight is delighted to welcome Taulia, the leading dynamic discounting solution provider, as its first sponsor.

Purchase to Pay, P2P and Dynamic DiscountingThere's much talk about dynamic discounting and how it can yield significant returns on investment but dynamic discounting is absolutely not the first step in extracting value out of purchase to pay optimization - it is the final step. Let's go back to basics and remember that P2P is not a core function of an organization. Rather, it supports the core functions such as sourcing and procurement, accounts payable and finance. Purchase to pay develops and installs synergy across the physical and financial supply chain and uses technology to support better ways of working to reduce the cost of doing business with suppliers.