Author Archives: David Gustin



About David Gustin

David is the founder and President of Global Business Intelligence (“GBI”) since 1996 and the co-founder of Trade Financing Matters. For almost 20 years, David has been running a global research and advisory practice centered on helping banks, vendors, and corporates with trade services, trade credit and financial supply chain matters. His clients included financial institutions, financial technology vendors, transportation vendors and professional service firms. As Co-founder of Trade Financing Matters, part of the Spend Matters properties David supports all things working capital and is currently involved in projects around alternative lending models. You can reach the author at dgustin @ tradefinancingmatters.com


Everything Procurement Should Know About Payments (Part 6): Payment Best Practices and Recommendations

early pay

Our goal in this research series on payments has been to provide procurement with a single point of reference to understand all of the intricacies and challenges associated with standard payment processes today, as well as the limitations of existing procure-to-pay (P2P) solutions when it comes to addressing payments in full. Spend Matters PRO subscribers can access the individual parts below:

The final installment in this series summarizes payment best practices today and provides recommendations to procurement organizations looking to take a leadership role in driving integrated processes that bridge supplier management, transactional buying, accounts payable, payment and working capital management processes.

Everything Procurement Should Know About Payments (Part 5): Dynamic Discounting and Supply Chain Finance Models

The payment process is integral to not just transactional procurement, accounts payable and supplier management. It is also an essential component of receivables and payables trade financing models. This fifth installment in our Spend Matters PRO series exploring how procurement touches and is impacted by the payment process provides insight into the intersection of payments and trade financing, especially buyer-led (or influenced) models. See also:

In this brief, we explore the two most popular (non-factoring) trade financing models — supply chain finance (SCF) and dynamic discounting — as well as their payment intersections, especially from supplier on-boarding and enablement perspectives. We also provide an introduction to hybrid early payment and trade financing models.

Everything Procurement Should Know About Payments (Part 4): Setting Up Suppliers for Payment — The Intersection of P2P and Supplier Management (Part 4)

Historically, most procure-to-pay solutions have put advanced supplier management capability on the back burner from a strategic development perspective. At best, they have paid lip service when attempting to tie a powerful supplier information management (SIM) capability into P2P and supplier network offerings (i.e., one-to-many or many-to-many connectivity approaches). While this is beginning to change, in general the worlds of collecting, validating, managing and keeping supplier record information up to date to enable timely payment and accounts payable vendor outreach are rarely bridged fully.

This Spend Matters PRO brief, the fourth in our series providing a comprehensive primer on everything “payments” from a procurement perspective, provides a background briefing on why collecting supplier information is critical to enable payments and a checklist for setting suppliers up for payment, starting with initial on-boarding steps. (See Part 1: Procurement’s Role and P2P Case Examples; Part 2: Best-in-Class P2P Technology Capabilities and the Reconciliation Process; and Part 3: Payment Operations — Challenges and Opportunities.) It also provides a vendor data collection template for basic and advanced fields that companies should compare against their own for an accounts payable-centric on-boarding process spanning company, ownership, insurance and remit/banking details. Finally, Part 4 concludes with examples of technology enablement capability that advanced supplier information systems can bring for supplier on-boarding and data maintenance.

Everything Procurement Should Know About Payments: Procurement’s Role and P2P Case Examples (Part 1)

E-procurement is essentially what is sounds like. The same goes for e-invoicing, too. But when you add payments to the equation, things get messy.

Whether procurement and finance organizations are looking for an integrated procure-to-pay (P2P) solution or standalone invoice-to-pay (I2P) technology, the notion of either solution incorporating end-to-end payment and reconciliation capability is misleading at best. Granted, some providers, such as SAP Ariba and Coupa, have taken steps toward enabling the payment lifecycle through partnerships. But their payment solutions focus on the outcome rather than providing a broader toolbox around payment process management and reconciliation for buyers and suppliers alike.

How can these vendors, which deal predominantly in indirect goods, influence the total payment picture?

This Spend Matters PRO research series unearths the often misunderstood components of the “second P” in P2P. We start with a high-level overview of what procurement systems do (and do not) do today to enable payment processes, as well as what procurement’s responsibilities for payments are (and are not). We also profile what SAP Ariba and Coupa are enabling on the payments front, as well as the general approaches of other vendors.

Subsequent briefs in the series will provide a detailed summary of best-in-class e-procurement and e-invoicing native payment capability and integrations to enable payments, a detailed overview of the invoice to reconciliation process, an exploration of P2P and payments best practices, and guides for how to set up suppliers for payment in a system, the integration of cash management and payments, how to think about trade financing and payments, and the role of shared services in payments.