Spend Matters’ own Jason Busch was featured in the latest edition of The Secured Lender magazine, discussing what he sees as the top trends in procurement and supply chain finance. From user adoption of e-invoicing to other solutions in the space, Jason shared his expert insights and predictions on how technology is impacting the supply chain finance game.
You can check out the full article at The Secured Lender, but below are some snippets from the interview.
On the growth of e-invoicing adoption in the U.S.: “If we look at absolute penetration rates in terms of potential markets for e-procurement within business, it’s still miniscule if you count SMBs. But by our estimates, at least 10% of Global 2000 indirect procurement orders are going through some type of e-procurement platform and we would expect that to increase significantly from here based on the sales of solutions from companies like Coupa, Ariba, SAP, Oracle and many others.”
On the role banks are playing to add value to e-invoicing financing: “I think the banks obviously have played a major role in the creation of the broader supply chain finance market, which is still arguably a very nascent market, given adoption levels compared to, say, e-procurement uptake in large global firms.”
On just how little of the e-invoicing, dynamic discounting and other technology out there is actually “disruptive”: “When I think of disruptive, I think of things like Bitcoin and blockchain. I think of things like what Amazon has done with Amazon Web Services for scaling up and hosting on an external basis, providing massive amounts of on-demand technology infrastructure support for companies when they need it… Rather than calling a lot of this ‘disruptive innovation,’ I think, to put it more accurately, it is technology progression, and there is going to be a lot of overlap between providers in the next three years, as markets become more mature.”
On how e-documents in trade will impact inventory and production finance: “We’ve been briefed on some pretty cool new offerings that might be coming to market, including some folks coming from more of the asset-based lending and factoring world looking more closely at the intersection of global trade, logistics and financing through automation.”