Spend Matters and Trade Financing Matters have teamed up to explore the opportunity present for connected, seller-centric platforms to facilitate data and document flow that offers liquidity and working capital. Presenting the complimentary research download, Distributor Finance – A New Take on an Untapped Market by David Gustin, editor and co-founder, Trade Financing Matters. Download it today!
Category Archives: Trade Financing
SAP Ariba announced a partnership Wednesday with PrimeRevenue to add “a multifunder supply chain financing platform” to its integrated source-to-pay (S2P) process. SAP Ariba said the partnership will combine transaction and financial supply chain data to better link procurement and finance organizations. PrimeRevenue provides a cloud-based supply chain finance solution. The Atlanta, Georgia-based company reportedly manages $120 billion in transactions annually and has more than 20,000 clients in more than 70 countries.
Spend Matters welcomes this sponsored article from Sean Van Gundy, managing director, working capital advisory at C2FO.
Payment terms standardization, terms extensions, P2P automation and dynamic discounting programs are all trending topics with global corporates these days. These tactics can be effective at improving payables value, but what’s the best strategy to achieve your desired results?
In February, Arrowgrass Capital Partners, a London-based asset manager, announced it acquired Oxygen Finance. The acquisition is curious, in part because of the existing Arrowgrass and Basware partnership and Oxygen’s unique model, which we explore in this analysis. Oxygen currently has “billions of pounds” flowing through its infrastructure annually, primarily from U.K.-based public sector clients, yet it is not a P2P or e-invoicing vendor like most other providers focusing on discounting. Nor is it like C2F0, which focuses on creating loosely coupled — from a transactional systems perspective — competitive markets that provide greater flexibility to suppliers around participation compared with Oxygen. This multipart Spend Matters PRO brief delves into the Oxygen Finance solution in detail and explores a number of questions that Oxygen and the acquisition raise. These include whether or not the deal signals that additional private funds are likely to make more investments and buyouts in the sector. (Note Zouk investing in Taulia recently.) More important for users, we provide our analysis of the Oxygen Finance model, which is theoretically based broadly on a closed loop buyer network with its suppliers, and whether it might be able to gain the same type of discount scale and supplier adoption that new e-invoicing led trade financing models of the sort Taulia is bringing to market with its SCF+ are hoping to achieve through an alternative means. Finally, we analyze the days payable outstanding (DPO) and working capital impact Oxygen can have in comparison to alternative approaches — and why the public sector appears the most fertile ground for the solution approach.
Reverse factoring programs require a careful internal process orchestration that must include procurement, accounts payable, treasury and executive leadership to be successful. During an outstanding panel discussion led by The Trade Advisory’s Tony Brown at the CFA’s Supply Chain Finance/Factoring World event in Miami last week, two panelists, Kyriba’s Eric Riddle and Wells Fargo’s Stephen Elson, provided contrasting examples of what successful and poorly performing reverse factoring programs look like.
In the first installment in this series, we provided our own recent history lesson on Taulia and how it got to where it is today — and the crossroads it currently faces from a strategy perspective. As we wrap up our Spend Matters PRO update on Taulia, we explore a number of specific areas of its business today, including a deep dive into its SCF+ offering, a tech-enabled and simplified approach to reverse factoring for the long-tail supplier masses instead of just large vendors. We also explore how Taulia is currently positioning itself today as it engages customers and how, on many levels, its core offering is a Trojan horse for what it really wants to sell with partners (but why that foot in the door with procurement, IT, accounts payable and treasury is an important as a first step and how these different worlds are converging). Granted, it would be easy — and not incorrect — to observe that the broader e-procurement market and purchase-to-pay (P2P) market remains distinctive from Taulia’s core sector today. Yet going forward, one can make the case that the worlds of generic (indirect) and category-specific buying, transactions, financing and payment will come together. And this is where understanding Taulia's emerging strategy matters.
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 here are some snippets from the interview.
We had the chance to spend two days last week at Taulia Connect, the customer conference of one of today’s largest and fastest growing e-invoicing, supplier network and fintech providers globally. (One hundred customers may not seem like a lot, but in this sector, it is.) Despite its solid momentum since the last event in fall 2014 — including a 100% renewal rate — Taulia has introduced a materially evolved strategy and face to the market since the last time it shared its perspective and vision in this in front of their user, prospect and partnership base. This two-part Spend Matters PRO brief explores Taulia’s product, marketing and competitive evolution and what we perceive to be a current strategic crossroads. And we can’t help but provide some broader perspective and commentary on Taulia's approach to supplier networks, e-invoicing, discounting and supply chain finance — and how the firm is trying to disrupt a number of incumbent ecosystems (and different vendors) in more than one market segment it is competing in today and heading into tomorrow.
The Funniest CPO in the Business is Dead Serious About E-Invoicing and the Financial Supply Chain: Taulia Connect Dispatch
Yesterday, I tweeted from Taulia Connect that Tom Mathis, head of procurement at of Milliken (he calls himself chief sourcing officer) is the funniest CPO on the planet. He is in the wrong line of work. Seriously, he’s Seinfeld/Larry David funny. Mathis spent 45 minutes keeping the crowd on their toes with a bunch of one-liners — in addition to telling a great story of procurement, accounts payable and treasury improvements at Milliken.
Earlier this morning, Cedric Bru, Taulia’s CEO, welcomed approximately 400 attendees to Taulia Connect, the firm’s customer conference in San Francisco. Cedric’s talk was about as visionary and big picture as it gets. He spent less than a minute going through the usual company and product updates that a CEO often frames at these types of events (see some quick updates on company numbers below). He spent more time making the audience dance. (Yes, he took us through a few moves.)
Cedric Bru, Taulia’s CEO, is no stranger to the world of trade financing and supplier connectivity. Just before Taulia Connect, Cedric shared with me a number of thoughts on topics ranging from Taulia’s position in the market today to the future of trade financing beyond the current world of e-invoicing, dynamic discounting and supply chain finance. We’ll feature this interview in multiple installments throughout the week, in addition to live coverage from Taulia Connect.
Basware is entering another transformation. Spend Matters has noted before that the Finland-based procurement solutions provider doesn’t “enjoy sitting still.” That’s proven true again with the company’s latest announcements to redefine its business strategy for the next two years to focus on expanding its procure-to-pay (P2P) and e-invoicing solutions and its new financing services as well as increase overall revenue growth.