Optimise your cash and earn healthier returns at the same time
With SAP Ariba Discount Management and working capital management services, not only can you boost your suppliers’ liquidity, but you can also earn far greater returns than short-term cash investments provide.
Collaborating with the suppliers you choose, you’ll use on-demand tools for automating the early-payment discounting process, from initial offer through final capture. It all transpires over the Ariba Network, the world’s largest business network. If a supplier isn’t already on it, it’s easy to enable them.
During these challenging times, paying suppliers early could be used as a further incentive to attract suppliers to transact with you in a digital way over the Ariba Network.
Seize early-payment discounts,
strengthen your supply base
The solution automates early-payment discount management from initial offer to agreement, including transactions with prorated or dynamic discounts. You control the amount of cash that’s applied to discount programs, and you determine which suppliers to target.
You can also set the “hurdle rate” – the minimum rate of return you
are willing to accept for discounts. And with support for all your invoices, you can take advantage of discount opportunities on electronic invoices
as well as invoices that you process manually.
Maintain Control of Your Dynamic Discount Program
The discounting capability is a collaborative finance solution that works with all popular ERP systems, including the SAP® ERP application. It lets you extend early-payment discount offers to virtually all of your suppliers
through the cloud while maintaining control of your dynamic discount programs.
Powerful reporting functionality lets you track metrics such as discount volume, average discount rate, transaction volume, and supplier growth rates. You can compare results to other periods, supplier-specific discount metrics, and other criteria.
Traditional static early-payment discount programs limit opportunities to manage cash. These programs typically involve a small group of suppliers managed by procurement, and they do not allow discounts to be captured after the discount date.
The discounting capability in SAP Ariba Payables gives you another way to collaborate with suppliers. With this capability, you can capture all
existing discounts and expand discount opportunities to new groups of suppliers that never offered discounts before. Discount offers include
dynamic, sliding-scale discounts that are available for capture all the way up to the invoice due date.
Design, Run, and Maintain a Program Suppliers Will Support
Automated alerts and notifications immediately inform suppliers of discount offers. Suppliers can view payment status from a supplier portal
and accept discount offers every time or on an ad hoc basis.
The cash flow optimizer tool allows suppliers to model early-payment opportunities and choose the most affordable discount offers to meet their cash flow needs. Suppliers can also initiate discount offers or make counteroffers as part of a collaborative cash management process.
For more information on how we can help your organisation addressing any supply chain disruption, contact our team today.