Author Archives: Xavier Olivera



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 (Part 3): Challenges and Opportunities for Payment Operations

e-invoicing

As anyone tasked with extending and integrating a procure-to-pay (P2P) system to fully support the second “P” has no doubt learned, corporate payment processes and systems are highly complex — perhaps even more so than transactional purchasing activities. This Spend Matters PRO series provides a procurement-centric introduction to the topic of payments, offering a look into the payments lifecycle and how it integrates with core P2P processes and workflows.

Earlier installments (see Part 1 and Part 2) explored the invoice-to-reconciliation process, internal and external parties involved in core payments workflow and P2P technology best practices. In Part 3, we turn our attention to the nitty-gritty of managing core payment operations, examining a full list of the challenges companies face in confronting payments today, as well as the financial and operational costs of managing payments sub-optimally. We also provide an overview of shared services environments for payment operations while also exploring the many challenges companies face in attempting to drive payment process and system centralization generally.

Oracle Procurement Cloud: Vendor Snapshot (Part 3) — Competitive Analysis & Recommendations

tech

With planned release enhancements in the coming year, Oracle Procurement Cloud could become the 80% headache (today it is the 70%) for procurement suite providers and even more specialized competitors. Already, Oracle Procurement Cloud not only provides newcomers to spend management an opportunity to build a strong procurement foundation, but for companies that have swung and missed (for whatever reason) in their attempts to establish such a baseline, Oracle brings a lot to the table and will likely surprise those that had previously looked at earlier releases or other Oracle procurement applications.

This third and final installment of our Spend Matters Vendor Snapshot provides a SWOT analysis of Oracle Procurement Cloud, as well as a segmentation and comparison of competitors. It also includes a recommended shortlist of candidates that could serve as alternative vendors to Oracle for source-to-pay (S2P) suites, procure-to-pay (P2P) suites and e-sourcing. Finally, we conclude with a summary analysis and recommendations for organizations considering Oracle Procurement Cloud.

Oracle Procurement Cloud: Vendor Snapshot (Part 2) — Product Strengths & Weaknesses

Oracle Procurement Cloud is a procurement technology suite that is targeted primarily at three key market segments. First, net new Oracle ERP Cloud customers who are looking to add procurement suite functionality. Second are those organizations that are current Oracle eBusiness Suite, PeopleSoft or JD Edwards ERP customers that may migrate to the cloud for their core financial system. And third are those customers with “installed” Oracle solutions for procurement (Oracle eBusiness Suite Procurement, PeopleSoft SRM, etc.), although these organizations may or may not (yet) be a fit for Oracle Procurement Cloud based on organizational requirements, including the degree of customization done to previous solutions.

Regardless, in many cases, Oracle customers considering Procurement Could will not have purchased a full source-to-pay (S2P) or procure-to-pay (P2P) suite from third-party vendors in the past, although they may have had experience with individual modules and solutions from Oracle procurement competitors. But in certain cases, Oracle customers have replaced suite capability from providers such as SAP Ariba and Coupa.

This Spend Matters PRO Vendor Snapshot explores Oracle Procurement Cloud’s strengths and weaknesses, providing facts and expert analysis to help procurement organizations decide whether they should consider the solution. Part 1 of our analysis provided a company and detailed solution overview and a recommend fit list of criteria for firms considering Oracle. The third part of this series will offer a SWOT analysis, user selection guide, competitive alternatives, and additional evaluation and selection considerations.

Oracle Procurement Cloud: Vendor Snapshot (Part 1) — Background & Solution Overview

You can almost set your watch on it. When ERP vendors decide to enter a particular solution market, impassioned arguments debating the tradeoffs of their approach versus the perceived benefits of those taken by specialized application vendors turn up the volume on a regular basis. “To ERP or not ERP,” that is the question. And while Oracle’s Procurement Cloud has not yet settled this debate, the offering will continue to draw the attention of many companies as well as Oracle’s installed base during their respective source-to-pay (S2P) technology evaluation processes, especially as Oracle’s solutions continue to improve and mature in the area and take their place as cloud-native solutions, turning entirely away from the ERP installed software legacy.

This Spend Matters PRO Vendor Snapshot provides facts and expert analysis to help procurement organizations make informed decisions about Oracle Procurement Cloud and whether its capabilities are a fit for their needs. Part 1 of our analysis provides a company background and a detailed solution overview, as well as a summary recommended fit suggestion for when organizations should consider Oracle Procurement Cloud. The remaining parts of this research brief will cover product strengths and weaknesses, competitor and SWOT analyses, and insider evaluation and selection considerations.

Everything Procurement Should Know About Payments: Best-in-Class P2P Technology Capabilities and the Reconciliation Process (Part 2)

BuyerQuest

There have been two (somewhat bad) jokes around product naming since procurement technology adoption became widespread. The first was when SAP labeled its e-procurement product “supplier relationship management” (SRM), which was a misnomer, to say the least. SRM, which competed against Ariba, Commerce One and others at the time, was about managing transactional buying, not about strategic supplier relationships. The other naming “fail” was unfortunately more generalized outside of a single provider, and that was labeling the broader transactional procurement tech sector as “P2P,” with the second “P” standing for “payment.”

If there is a silver lining in this naming misstep, however, it’s that we have the power to actually do something about it today. P2P solutions are finally beginning to embrace the payment ecosystem more holistically, and procurement is taking an orchestration role in the process. This Spend Matters PRO series provides a procurement-centric view into payments, exploring the payments process and all that it encompasses through a “get smart” primer.

Part 1 provided an introduction to the topic and explored what e-procurement systems do (and do not do) to enable payment processes. It also explored what SAP Ariba and Coupa have developed from an integrated e-procurement, e-invoicing and payments offering perspective though various partnerships. The second installment in this series provides a summary checklist of best-in-class e-procurement and e-invoicing native payment capability and integrations (internal system and third party) to enable payments and an overview of the invoice to reconciliation process, outside of P2P systems alone. It includes an introduction to various electronic funds transfer (ETF) models, tax considerations, currency considerations and related topics. It also includes a look at all of the internal and external functions and parties involved in different stages of the reconciliation process.

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.

Search for the Best Results and Buy Smarter

A supplier can have the best product or service in the world, but if it never appears somewhere the end user can become aware of it, it will never be purchased. Hence the importance of what logistics professionals call “the last mile” in physical supply chains — the final leg of the transportation journey that delivers a product or service to the consumer. The concept of the last mile applies to corporate purchasing, as well.

P2P and E-Invoicing Compliance: Spelling Out What TrustWeaver Does and Does Not Do

Technology and solution providers typically deliver electronic invoicing (e-invoicing) compliance offerings as a component rather than the central focus of an overall procure-to-pay (P2P) or accounts payable automation solution. Few vendors focus squarely on compliance as the central value proposition of their offering. But one provider does offer invoicing compliance “as a service”: TrustWeaver. Yet TrustWeaver is “consumed” by organizations as an integrated component of third-party P2P and e-invoicing solutions rather than directly. This research brief explores precisely what TrustWeaver enables from a compliance perspective in its current summer 2017 offering. Also included are insights into additional TrustWeaver compliance capabilities that the provider plans to add during 2H 2017.

This brief provides checklists to understand specific areas of e-invoicing compliance centered on three areas: local laws and regulations, invoice processing and value-added services. In this context, it describes what localized e-invoicing compliance requirements TrustWeaver supports and those it does not support. In this brief, our goal is to help procurement and finance organizations understand what precisely a vendor means when it says it is a “TrustWeaver” partner — and what other steps they (or their solution partner) may need to take to ensure broader compliance requirements are met.

The Growth of E-Invoicing Compliance (Part 3): Buyer and Supplier Functional Checklists

public procurement

Just what defines “compliant electronic invoicing” continues to be one of the least understood areas of procure-to-pay (P2P) solutions. One of the reasons for this is that many technology providers — not limited to just P2P providers but also accounts payable automation vendors — hawk compliance as if it were a bag of peanuts in the hand of a vendor at a baseball game. In reality, however, few single solutions even approach “full compliance” on a global, or even localized, basis.

The challenge for buyers of technology or managed services e-invoicing solutions is that when we address the topic of e-invoicing compliance, we’re talking about a complex barrel of goodies (the metaphorical equivalent of nuts, candy and fruit), not just a ballpark freshly roasted (or generically bagged) special. Further complicating the topic of e-invoicing compliance is that we must fully address both buyer- and supplier-led compliance depending on whether someone is on the issuing or receiving side of an invoice — the two are not the same.

This Spend Matters PRO research brief succinctly cuts to the chase (we hope!) of what a compliant solution must contain. It provides both a buyer and supplier diagnostic checklist to ascertain whether a provider is offering a compliant solution. Also see the first installment (E-Invoicing Compliance, Globally: Beyond TrustWeaver’s “Seal of Approval”) and second installment (The Growth of E-Invoicing Compliance: Exploring Vendor Capabilities and Approaches (Part 2) in this series.