Exploring A/P and Procurement Best Practices at P&G: Lesson 5

Lesson #5 – The ‘Hand of God’ - Invoice Discounts Can Be Resurrected From the Dead

By the “hand of God,” I don’t mean soccer player Diego Maradona’s famous soccer goal but rather the ability to take invoices that might have otherwise been DOA (dead on arrival) in terms of capturing an early payment discount— and bringing them to life via a dynamic discount offer (i.e., “pay me now” – even past the early pay discount date) to the supplier.

I saw P&G do a presentation a few years ago. This was something they wanted to implement more thoroughly, and I suspect that they might use one of their banking partners to help offer this (e.g., JP Morgan Chase is a good example of this with their Order-to-Pay service, acquired from Xign), but of course there are many other options from a landscape of providers. We discuss them in the following Spend Matters research reports:

Spend Matters PRO subscribers can also access the following related subscriber research briefs:

As all of our research in this area shows, enhancing visibility to invoice status and maturity (both internal and supplier-facing) is absolutely central to enabling any type of resurrection strategy. But as “World War Z,” the latest and highly anticipated “night of the living dead” flick soon to hit the big screen, shows, resurrecting zombies (of the human or discounting sort) is not always a good thing when there are too many of them! Best to get ‘em early if you can.

This post is based on content contained within the following Spend Matters paper: P&G: A Case Study of Supply Management’s “Non-Invisible Hand” in 10 Easy Lessons. The paper is free to download in the Spend Matters Research Library.

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