Supply Chain Finance – what have they put in the e-invoicing providers’ water?

Wow, it’s all going on in the e-invoicing and supply chain finance world! Who would have thought this would become such an interesting and dynamic market.

We had the announcement of the complicated OB10  transition the other day, which will see them linking up with a bank in a new organisation (Tungsten) to offer supply chain finance options to OB10’s enormous supplier network.

Then we had the mavericks of the e-invoicing world, Tradeshift, coming straight back with their own supply chain finance initiative. Let me be totally honest here – I’m not sure I really understand some of this in terms of how it will work. But they appear to have the backing of CapitalAid, to launch a fund worth $3B to run a factoring / supply chain finance business, supporting the firms using the Tradeshift invoicing platform.  However, I’m not clear yet exactly where CapitalAid are getting that money from?  I mean, I’ve got a bit of spare cash, but $3B?

You might also like to read the coverage on our sister site, Spend Matters US, which includes an interview with Tradeshift founder, Christian Langg, the most outspoken man in supply chain world! (He pretty much offers to buy OB10 during the interview by the way).

But there was another recent announcement that might in the long term prove just as significant. Oxygen Finance have won a contract with Northumberland County Council to provide a supply chain finance platform for the Council that should offer suppliers rapid payment options and save the Council some serious cash. And what is particularly good news for Oxygen is that Northumberland have apparently let the contract as a framework that is open to all other public bodies in the UK (note to public sector readers – please do your own due diligence on this if you plan to take advantage of the contract).

There are huge opportunities for supply chain finance in the UK public sector, with the best part of £200 billion being spent annually. If Oxygen can establish themselves as the market leader here, they’re going to be a serious threat to OB10, Tradeshift, as well as larger ERP type firms like SAP, Oracle and Basware, who all have their eyes on this opportunity too.

And if you’re interested in this area, do follow Spend Matters US and take a look at our subscription options, Plus and PRO, which will be featuring a lot more insight into this topic.

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