PayStream Advisors released the 2013 Dynamic Discount Management: Moving Toward Mainstream report today, which reveals that over 90 percent of AP practitioners say Dynamic Discount Management (DDM) is a priority (up from 80 percent a year ago), proof that DDM is rapidly moving into the mainstream.

While more practitioners reveal that capturing discounts is a priority, only 24 percent of the companies that PayStream surveyed were able to capture all discounts offered.  The reasons most often given for failure to take early payment discounts were lengthy approval cycles and lost or missing invoices – both problems commonly associated with manual payment processing and paper invoices.

PayStream research suggests that recent innovations, such as buyer-suggested discounts are being positively received, resulting in more captured discounts and the growing perception that dynamic discounting can be used as a cash management tool.  The potential for high, risk-free returns and the opportunity cost of failing to act is driving more companies to implement DDM first, and use the proceeds to pay for other Accounts Payable process improvements.

Seeking to gain insights and current trends in Dynamic Discount Management, PayStream conducted an in-depth survey in Q4 2012, of over 200 accounts payable and procurement professionals at U.S. based enterprises.  Key survey findings include:

• Over one-third (37 percent) of survey respondents report that capturing discounts is a high priority.
• Nearly one-quarter (24 percent) of companies are able to capture all available discounts.
• Nearly half (46 percent) are able to capture at least 10 percent of discounts.
• Lengthy approval cycles (27 percent) and lost or missing invoices (21 percent) are the top reasons for late payments and missed discounts.
• Supplier resistance to accept electronic payments (21 percent) is the number one reason companies are not utilizing electronic payments.
• Lower processing costs (80 percent) and the reduction in the procure-to-pay cycle time (49 percent) rank as the top benefits to utilizing electronic payments.

The Dynamic Discount Management report was underwritten in part by Ariba and Taulia and can be downloaded for free HERE. Download your complimentary copy today.