Supplier Enablement: What Types of Partners Exist for Trade Financing?

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In terms of data collection and management, the individual elements that factor into a trade financing onboarding program for suppliers will vary depending on the individual initiative/type, geography, etc. But who should companies turn to for supply chain financing and invoice discounting enablement generally?

There are several choices, depending on the program. These include:

  • An “integrated” solutions provider that offers the financing or origination mechanism along with onboarding as part of its core value proposition – ideally where incentives are aligned to maximize the onboarding effort (e.g., the vendor’s success is based on throughout/volume).
  • An independent supplier onboarding and enablement specialist. A handful of providers with competency onboarding suppliers and managing transactional connectivity within P2P environments are likely to be a good fit here, although they might have to add additional elements to their program (e.g., “selling” to suppliers, formal KYC-type data collection, etc.) as part of the efforts.
  • An internal (captive) or external (BPO) shared services center that takes on the added requirement for financing-centric supplier enablement in addition to accounts payable-type supplier management activities – and is willing to sign-up to specific service level requirements to enable programs.

Just as with P2P, supplier enablement for trade financing can prove to be the Achilles heel of otherwise perfectly architected and engineered programs.

Why leave it to chance?

This post was based in part on content in the Spend Matters Perspective, Supplier Enablement for Invoice Discounting and Supply Chain Finance: Background, Tips, and Secrets for Success. In this research brief, Jason Busch and David Gustin explore the history and future of supplier enablement, centering not only on P2P processes, but also onboarding for trade financing (e.g., supply chain finance, invoice discounting, etc.) initiatives.

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