Supplier Enablement

Supplier Enablement - you're gonna pay!

Following on the theme of my BLOG of yesterday where I highligted the dilemma of who pays for supplier enablement, I had some thoughts following a conversation with buyer who said; " the supplier will always pay to do business with us whether we choose to use paper or use electronic".

If you can compel your suppliers to meet the costs of their participation in your use of technology for a Purchase to Pay process that changes the process you use to communicate with suppliers and send messages and documents then it becomes a supplier's decision to do business or walk away.

Of course one of the objectives of replacing paper with electronic communication is that you can improve both the speed and accessibility of information between buyer and suppliers.

Now, if in doing that you can expose e-invoicing then you start to co-operate on a new level. You eliminate paper but the real benefit is from exploitation of settlement discounts that reflect the appetite for capital of the buyer and seller. And you get this with fewer resources as productivity of AP departments increases with eInvoicing.

So who is gonna pay is where you start out but it is just the beginning of something more beautiful.

More information at www.impaq.co.uk

posted by FrankB @ Tuesday, May 16, 2006