The Finance Category

Global E-Payment Software Helps Companies Cross Borders and Cash In, Report finds

MBO Partners

A wealth of opportunity awaits in emerging markets around the world, and global e-payment software is helping businesses cross borders to tap into that revenue — and navigate the fiscal risks that can strain supply chains and supplier relationships, according to a report that surveyed more than 400 organizations. According to the report, 73% of U.S. companies are now making some type of cross-border payments. But writing a check and sending it to Peru or even relying on wire transfers to far-flung locales no longer cut it with businesses trying to expand globally yet stay profitable. Those methods can be slow, fraught with fraud and take up too much time for a company’s accounts payable department.

Early Pay Finance Ain’t Easy: Understanding Customer Deductions

Every industry is affected by customer deductions. Called a variety of names by companies — including deductions, chargebacks or short-pays — from the perspective of a digital lender focused on invoice finance, understanding the nature of deductions is a first start to building smart underwriting and dynamic lending capabilities. Why? Deductions mean a diluted invoice value.

8 Quantifiable Levers Where Invoice-to-Pay Solutions Deliver ROI — Beyond Accounts Payable (Part 1) [PRO]

finance

Invoice-to-pay (I2P) solutions exist to serve the broader business, not just accounts payable functions. Spend Matters defines the I2P area as a combination of electronic invoicing (e-invoicing) and e- payments, which may leverage a supplier network model for connectivity and value-added capabilities.

I2P solutions not only reduce paper-based processes and increase efficiency (e.g., reduce cash disbursement costs per FTE) but also serve as a foundation for enabling finance organization improvements generally (e.g., by reducing late payments, optimized working capital and lowering non-compliance). The value-added capability of technology providers offer today can help procurement and finance to configure and deploy complex invoice workflow, matching, approvals, cash disbursements, trade financing options and better process management overall. ilities.

Yet all too often, these technologies are viewed as tactical and transactionally focused, when in fact they can deliver multiple strategic outcomes. Confining invoice-to-pay solutions to an AP-centric value proposition is a mistake that many organizations make when selecting technology. And it is one that that software providers also make when “under-selling” them into organizations. ilities.

This Spend Matters PRO research brief explores eight business levers that I2P solutions can pull to deliver return on investment (ROI), as defined by the functional requirements in Spend Matters SolutionMap. We have authored it to help organizations better quantify the extended returns they can realize from I2P solutions when building business cases and to help solution providers better sell the full business value of what they deliver. ilities.

Please note that a SolutionMap Insider companion research brief is also being published that will detail SolutionMap vendor performance for all of these areas, ranking how individual vendors perform against these requirements based on the Q3 2018 Invoice-to-Pay SolutionMap benchmark.

Sponsored Article

The Imperative to Improve Working Capital: Driving Forces and Emerging Solutions

Improving working capital performance has become increasingly important to companies in recent years, yet few procurement and finance organizations have found truly sustainable, long-term solutions to support this goal. The problem is that immediate external forces are pushing businesses to make working capital improvements now, while the sound financial strategies to maintain these changes require more than a few “quick fixes” to ultimately succeed.

Supply Chain Disruption and Customer Viability Top Finance Leaders’ Risk Management Worries

Finance departments are struggling to manage risk, a recent report from Dun & Bradstreet finds, and many finance leaders “believe their own efforts to manage, monitor and predict risk pose a moderate to high risk to their businesses.” In order to find out how today’s finance leaders are managing risk and what their future risk management plans look like, earlier this year Dun & Bradstreet commissioned a study of approximately 1,100 finance professionals, the vast majority of whom were based in the U.S.

Intelligent Trade Finance: The Confluence of Blockchain and the Internet of Things

Spend Matters welcomes this guest post from Biji John, product manager, trade finance, at Finastra.

The fundamentals of trade and trade finance have not changed in centuries: it’s process heavy, with bottlenecks and disputes everywhere. Characterized by paper and manual operations, the back office is ripe for next-generation transformation. In the middle and front office there is potential for far greater automation and use of real-time data, for example in the accounts receivables process, in SME credit underwriting, loan booking, and monitoring and indeed for relationship managers (human and virtual) to surface and analyze data to gain insights and provide more data-driven recommendations to corporate clients along the financial supply chain.

Debunking the Myths of Optical Character Recognition: What It Is and How It Affects Accounts Payable

e-invoicing

Spend Matters welcomes this guest post from Justin Holden, vice president of sales, Yooz North America.

OCR: Another one of those technical buzzwords that we’re hearing a lot about these days. It’s of particular interest in fintech (another new buzzword that stands for “financial technology”) and even more specifically in accounts payable. But what is it? More important, what isn’t it? And how does it make a difference in the accounts payable (AP) workflow?

Sponsored Article

Working Capital Optimization: Why a Game-Changing Approach is Needed

Game changers are easy to spot. They are the ones who want to make sure that tomorrow is better than today. They are the dreamers, the innovators, the ones who think the impossible is a challenge waiting to be bested. And in today’s competitive marketplace, it will be the game changer, more specifically, the financial game changer, who will stand out from the crowd. How will they do this, you ask? They will understand that working capital optimization is so much more than jargon.

Fintech or House Bank for Early Payment Solutions: Key Differences

There are three buyer-centric solutions to facilitate early payment for suppliers: supply chain finance, dynamic discounting and commercial cards (p-cards, v-cards). Bank-developed solutions in this space rely heavily on companies using credit lines. The focal point tends to be on p-card solutions, not dynamic discounting. Why? P-cards generate much more in fee revenue than dynamic discounting, particularly if a client uses its own funds to facilitate early payment instead of a bank credit line. 

Program Management: The Missing Link in Procurement Technology Modules and Suites (Part 10: E-Procurement Components, Continued) [PRO]

In this series, we have been discussing the glue that binds together different areas of procurement workflow: the overall program management of both individual tasks and collective activities across the source-to-pay continuum, along with the technology components that support this end-to-end perspective. As a whole, this Spend Matters PRO series provides deep insight into what effective program management technology capabilities encapsulate from a design, platform and functional perspective.

We started this series by exploring design principles on which effective program management technology is based across the source-to-pay continuum. We then provided insights into the building blocks of effective program management technology components including best-of-breed project management, performance management, program compliance, program collaboration and other areas. We then highlighted specific examples of category management requirements and supplier management requirements before our series wrap-up with e-procurement and broader P2P.

In our last article (Part 9 — E-Procurement Components), we defined the P2P program counterparts to the sourcing-centric programs and began a deep dive into the platform components required to support the programs covered in our last entry. In this final installment on P2P, we conclude the platform components required to support modern procurement programs.

Why Platforms and Source-to-Pay Networks Need Finance

More and more procurement software platforms and source-to-pay networks are receiving RFPs from clients requesting way to help improve working capital. Companies, even middle-market companies, have global supply chains. Working capital is important and could manifest itself in the form of yield management, ROI and balance sheet improvement. This is a box on the RFP that vendors need checked. But the path is not easy.

Yooz: Vendor Snapshot (Part 2) — Product Strengths and Weaknesses [PRO]

improper payments

Yooz is a specialized middle-market software provider in the accounts payable automation sector with particular expertise in rapid deployment and broad-based support for payables processes. Its capabilities include invoice capture, ERP integration, AP workflow and payment integrations. (Given its focus on the middle market, areas such as supplier portal, global compliance and supplier financing are not yet a focus.)

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