The Invoicing Category

What is Your I2P Persona? Understand Your Requirements and Mass Customize Your Vendor Shortlist (Q4 2017 Update) [PRO]

e-invoicing

No two accounts payable, finance or shared services organizations are alike (or procurement departments, for that matter). Each has its own persona that reflects not only its own value proposition and engagement approach but also the stakeholders it serves — and its supply base. The same principle holds true of procure-to-pay (P2P) application providers. Each has a persona that reflects its value proposition, solution strategy and targeted customer segments. Therefore, finance and procurement organizations should seek providers whose personas best align to theirs. In other words, there is no “magic” solution provider, and finding the right fit is critical, because a P2P application represents the main interface for most of procurement’s internal customers.

To that end, we are excited to lay out our approach to Spend Matters SolutionMap, a comparative analytical framework for practitioners to evaluate relevant solutions to meet their accounts payable, working capital and procurement needs. Our SolutionMap initiative depicts vendor rankings based on specific buyer personas to reflect the unique value proposition, solution strategy and customer segments served by a vendor. Participating vendors are scored both on their Solution as well as on Customer Value, based on in-depth tech reviews (including live demos) by the Spend Matters analyst team and aggregated direct customer input from surveys. Each SolutionMap is updated quarterly rather than in 12-month (or longer) cycles, to accurately reflect the pace of market developments.

As part of our second Spend Matters SolutionMap vendor comparison ranking for invoice-to-pay and procure-to-pay solutions, the Spend Matters analyst team has dedicated considerable time to developing the unique organizational “personas” that we’ve most often seen in our decades of experience working with procurement organizations.

We have used these personas to weight the requirements that we used in solution scoring, which includes customer satisfaction scoring by solution customers. Having collected feedback from hundreds of invoice-to-pay users, vendors and consultants in recent months as part of our SolutionMap research, we see these personas as useful starting points for procurement organizations to classify themselves before looking at solution rankings of providers in the market.

This Spend Matters PRO analysis shares five of the most common customer personas in invoice-to-pay buying needs. Aimed at practitioners as well as vendors and the consultants advising them, this research brief will be helpful to drive the type of “mass customization” of procure-to-pay solutions needed to meet specific organizational needs.

Below, we present our five personas for invoice-to-pay. For each, we include the following: full definitions, typical organizational priorities (based on each persona), functional / solution and customer value emphasis and recommended selection processes. Comparative vendor rankings are published for each persona separately on Spend Matters (and updated quarterly).

Zycus Horizon 2017 Dispatch: Exploring Zycus’ Products and Modules Across Source-to-Pay

Earlier in the week on the mainstage at Zycus Horizon, Aatish Dedhia, Zycus’ founder and CEO, provided an overview of his firm’s current and emerging product footprint. The suite is “comprehensive,” to use a word Dedhia favors in describing it. To his credit, Zycus arguably offers one of the broadest suites available today, albeit with varying degrees of depth and comparative functionality. While our definition of what falls into a particular module or another may differ from how various providers define it, here’s how Zycus explains its footprint today.

3 Ways Ineffective AP Processes are Endangering Your Supply Chain

Procurement organizations tend to focus on the “procure” part of the procure-to-pay (P2P) process; so much so that the second “P” often has to take a back seat. Yet the payments side of P2P offers strategic opportunities that procurement should consider — as well as critical risks that it must take into account. When AP processes are neglected, they can endanger your supply chain, tarnish supplier relationships, and jeopardize supply quality and continuity. Following are three ways those negative impacts can occur, along with recommendations for turning these possible risks into strategic opportunities.

Q&A with Eric Wilson, Basware’s VP of P2P: Can We Teach Machines to Get It Right 99% of the Time?

NLP

In Part 1 of our conversation with Eric Wilson, VP of P2P at Basware, we dug into the links between data and AI — is data the be-all, end-all behind AI advancements? What does one do with the data once they get it? And how best to manage it? In this second installment, we get a bit beyond the data collection and management, and more into how context and eventual wisdom play into it — and whether those are even truly attainable.

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Calculating Current Procurement Costs and Potential Savings to Make a Case for Automation

AnyData Solutions

Making a case for automation can seem like a daunting task. Procurement professionals must find clear, compelling ways to communicate the potential savings and benefits of P2P automation to their organization’s decision-makers. In a conversation with PayStream Advisors, Paramount WorkPlace CEO Salim Khalife explained that the first step organizations should take when considering automation is “to make sure that their house is in order” by ensuring internal adoption and management buy-in — but how can this be done?

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

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 [PRO]

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) [PRO]

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 [PRO]

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.

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

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) [PRO]

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.

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

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.