Monthly Archives: October 2013

BirchStreet Launches Supplier Services Programs

BirchStreet Systems, Inc., a leader in procure-to-pay solutions for the hospitality industry, recently announced its new Supplier Services programs. Suppliers are an integral part of the procure-to-pay process and a critical component to the daily success of any business operation that relies on ordering supplies, services or food. BirchStreet Supplier Services offers purchase order, catalog, invoice and mobile order entry automation and integration options for suppliers.

BirchStreet’s Supplier Services utilizes the existing core procure-to-pay platform and business model of on demand, cloud-based data to help customers and suppliers better communicate. Currently, thousands of hotels, healthcare facilities, country clubs, restaurants and other businesses in 52 countries use BirchStreet’s procure-to-pay solution to connect to 200,000 suppliers.

Creating efficiency, reducing costs, providing business intelligence and bottom line profitability will help the supply chain thrive. Supplier integration is the change agent that is bringing customers closer and keeping them. By automating and integrating back-end functions, buyer and supplier relationships will continue to grow, strengthen and profit.

With all of the Supplier Services, a dashboard controls and accesses the data, by-passing many previous manual steps. For PO Automation, suppliers can transmit PO data directly into their ordering system or ERP software. Catalog Automation allows seamless integration between suppliers and BirchStreet for real-time, accurate pricing and products with no manual data entry. With eInvoice Automation, suppliers can invoice and make payments, saving time, money and improving their cash flow. Finally, Mobile Order Entry Automation permits suppliers to take orders on-the-fly and instantly access catalogs, product lists and images, which can lead to increased sales and faster service. For some suppliers, being able to place and view orders on the road or visiting an account can be beneficial.

The Supplier Services programs eliminate manual data entry and simplify repetitive and time consuming processes. Insight, accurate pricing and online tracking speed up orders and payments with alerts and easy access. Whether suppliers use one service or all of them, Purchase Order, Catalog, eInvoice and Mobile Order Entry automation will offer suppliers all of these benefits. However, more importantly, it will lead to better customer service, customer relationships and profitability. An additional benefit and trend is that as business automate their business processes and eliminate paper, supplies and transportation costs, they become more environmentally friendly.

Click here to view the entire BirchStreet press release.

To learn more about BirchStreet and their solution functionality, download a complimentary copy of PayStream Advisors 2013 Electronic Procurement report. The report includes a detailed BirchStreet profile.

PayStream Releases Data Capture for AP Report

PayStream today released the 2013 Data Capture for Accounts Payable: Transforming Documents into Business Ready Data report. Survey results reveal that front-end imaging and data capture continue to increase as more companies strive to reduce invoice errors, reduce costs, increase invoice processing cycles, visibility, workflow and improve compliance and reporting.

The concept of data capture with Optical Character Recognition (OCR) has been around for quite some time, OCR is the technology that allows software to interpret machine printed text on scanned images. The idea of utilizing Accounts Payable (AP) Data Capture OCR technology is to reduce the amount of time AP employees spend processing invoices. With an automated OCR system, as much as 75 percent of the time spent using conventional methods of AP processing are saved, resulting in fewer errors, reduced costs, quicker invoice processing cycles, visibility, workflow, improved compliance and reporting.

While paper invoices continue to decline, 52 percent of business-to-business (B2B) invoices are still traded on paper. Paper invoices require manual data entry or hand-keying into an accounting system. Invoice data capture software scans the invoices and scanned invoices are recognized with OCR. Relevant data is located, errors are corrected and data is exported directly to an organization’s accounting software database.

Advances in OCR technology has created intelligent, more accurate and highly scalable data capture and document processing software that automatically transforms documents into business-ready data; thus increasing efficiency by automating paper-based business processes. To reap the benefits of OCR technology, more organizations, particularly those with high volumes of invoices, have started scanning paper invoices upon receipt. Scanning invoices at the front-end or upon arrival permits invoices to be entered into an electronic workflow system for faster and more accurate processing. Scanning invoices at the front-end is also a gateway for end-to-end invoice processing – that will allow companies to simply open the mail and process stacks of paper invoices straight-through, without any special document preparation or manual corrections.

The report examines current demand for OCR/Data Capture solutions and should serve as a guide for AP decision-makers currently considering a data capture solution. It also includes an overview of OCR/Data Capture solutions that are available on the market today. Download it for free HERE.

BirchStreet Launches Supplier Services Programs

View the entire BirchStreet press release.

The Life of the Party? Attendees at PayStream INNOVATE 2013

What makes a great party? Good food helps, but it’s usually the people and sharing that make a party great. This years PayStream INNOVATE: Purchase to Pay Summit was truly memorable because of the wonderful collection of leaders that came together to learn, collaborate and grow. This year’s theme was focused on innovation and attracted more than 170 attendees from all over the globe.

Here’s a few of the takeaways I had from the conference:

Compelling Keynote Sessions

The two keynote sessions really challenged our attendees to think differently about the way they manage their operations.

Opening keynote speaker David Phillips is an Innovation Provocateur and teaches innovation strategies for a living. He kicked off the Summit with the thought-provoking session “Creating an Innovation Culture: It Starts with You!“ about how to overcome the barriers to innovation and how to drive change at your organization. The session really seemed to invigorate the audience and set the tone for the entire conference.

Our second keynote speaker was from a practitioner perspective. Kelly Coxon, Director of Procure to Pay at UPMC, stole the show with a session with “Using Simple Metrics and Benchmarking to Drive P2P Process Improvement.” A key message she shared with the audience is that it’s easy to get tunnel vision within your own organization and lose sight of how effective and efficient you are compared to other organizations. Kelly’s session really hit home with the audience and was one of the best received of the conference.

Honoring the Innovators

We believe it’s important to recognize the people and companies who are pushing the envelope in Purchase to Pay, so this year we awarded the practitioners and solution providers who are bringing innovation to the industry.

The practitioner winners:

Becky Walkinshaw, Procure to Pay Manager, Ohio State University Medical Center
Larry Williams, Global Payment Services Process Owner, Procter & Gamble

The solution provider winners:

Ariba for Contract Invoicing solution
Tradeshift for Collaborative Workflow solution

Congratulations to all the winners this year!

Valuable Case Studies from Leading P2P Managers

In between keynote sessions and coffee breaks in the exhibit hall, delegates were eager to learn from leading companies during breakout classroom style sessions. P2P leaders shared their successes (and challenges) on topics ranging from electronic invoicing to P-Cards to supplier onboarding. Attendees raved about the new concepts and ideas they were able to adapt and bring home to their own operations. Some of the top rated sessions included:

“The Life of PIE: Payment Intelligence Evolution” presented by Gary Salek Financial Shared Services Manager and Wayne Rosenfeld, Corporate Procurement Manager at Snyder’s Lance

“The Path to Paperless at Procter & Gamble” presented by Larry Williams, Global Payment Services Process Owner at Procter & Gamble

“Supplier Risk Management: How Well Do You Know Your Suppliers” presented by Stephanie Matejka, Senior Manager Supply Chain Management at Mayo Clinic

10 Newly Certified Purchase to Pay Professionals

I’m pleased to announce the certification of 10 new P2P Professionals! The members, ranging from organizations such as PNC Bank, Cigna Corporation and R.J. Reynolds Tobacco Company, successfully completed the 6 hour training course and passed the exam. We hope the questions weren’t too difficult! The certification program, known as PayStream’s P2P Academy, was developed to bridge the knowledge gap between payables and procurement.

Leading P2P Solution Providers

The conference would not have been possible without the support of our sponsors and exhibitors, so I’d like to thank all of them for their support. Tradeshift was the lead sponsor. Ariba, Direct Commerce, SciQuest and Hubwoo all contributed excellent case studies with their customers. AFI, Basware, Esker, Financial Operations Networks, Fundtech, Global Edge, IOFM, OB10 and Scan One all played key roles as exhibitors.

Thank you to everyone who attended and participated in PayStream INNOVATE 2013 to make it such a huge success. We hope to see you again next year!

Tradeshift Announces Dynamic Discounting

Tradeshift today announced their latest early payments offering – Dynamic Discounting. Following the recent release of a $3 billion supply chain financing offer through CapitalAid, Dynamic Discounting is yet another financial solution fully integrated into the Tradeshift platform providing easy access to cash for suppliers.

“Many feel that finance, and business in general for that matter, is a zero sum game. We’ve never seen that as the case at Tradeshift. Rather, we recognize that when you deliver real value, you receive it in return,” explained Tradeshift SVP of Product, Mihir Nanavati on Tradeshift’s company blog. “Early payment solutions, specifically Dynamic Discounting, have the potential to strengthen a supplier and help them grow while reducing costs for buyers. This is not a winner-takes-all game. Every solution we develop shares this goal of delivering value to both ends of the transaction – Tradeshift Dynamic Discounting does just that,” he continued.

The old story goes something like this – smaller companies need access to cash and their invoices paid quickly so they can stay in production and grow. Their big customers prefer extended payment terms and like to keep their cash on hand for as long as possible. Dynamic Discounting provides a fix for both participants. When buyers pay early, suppliers provide discounts on invoices. The earlier they pay, the greater the discounts. Smaller companies get the cash they need quickly, and the big guys save money and enjoy the many benefits of a cash solvent supply chain. As long as the terms are fair, both parties win.

Suppliers using a registration application running on Tradeshift to sign up with a new trading partner are prompted to sign up for Dynamic Discounting. And from the buyer side, it’s just as simple. Define your discount offer for the suppliers who have expressed interest in joining the program. Then send the offer to suppliers with just a few clicks.

Tradeshift Enterprise customers who are already experiencing benefits of electronic invoicing will find that their discount capture rate exceeds expectations, thanks to Tradeshift’s collaborative workflow with mobile enablement of invoice coding, review and approval.

Download a copy of PayStream’s 2013 Dynamic Discount Management: Moving Toward Mainstream report to learn more about how dynamic discounting can benefit your company. To learn more about Tradeshift, download the recently released Invoice and Workflow Automation Benchmark report. The report features a detailed Tradeshift profile.

Purchasing Card Usage on the Rise

PayStream today released the 2013 Purchasing Cards: Working to Simplify the Procure-to-Pay Process report, which reveals that Purchasing Card usage is on the rise – up 5 percent, from 64 percent in 2012 to 69 percent in 2013.

Key drivers of increased P-Card usage is the convenience of swiping a card over carrying cash and processing a receipt, rebates earned for high volume card use, incentives from P-Card issuers and lower processing costs. In an effort to reduce processing costs, more organizations are migrating away from paper-based check processing to P-Card transactions. When check payments are switched from the traditional purchase order driven acquisition process to a Purchasing Card, there is a cost savings of $74 per transaction. This can translate to a considerable reduction in processing costs when used to purchase more goods and services.

PayStream partnered with NAPCP, the Professional Association for the Commercial Card and Payment Industry on the report. The report provides a comprehensive look into Purchasing Card trends, as identified by over 200 finance and procurement professionals. The report covers different types of Purchasing Cards, including Corporate Card, One Card, Fleet Card, Ghost Card, Virtual Card, and Single-Use Card. In addition to Purchasing Card products, this report includes Purchasing Card solutions offered by Bank of America Merrill Lynch and U.S. Bank.

Key findings in the report include:

P-Card usage increased 5 percent, from 64 percent in 2012 to 69 percent in 2013.
The number of companies that do not use P-Cards and have no plans to implement a P-Card program decreased from 31 percent in 2012 to 22 percent in 2013.
More companies are paying for higher ticket priced items with P-Cards. Forty percent of survey respondents report the average value of transactions processed using P-Cards is between $251-$1000, up from 33 percent in 2012.
The top benefit of P-Card programs is increased convenience to employees (75 percent), followed by rebates and incentives from P-Card issues at 63 percent.
The primary reason organizations do not use P-Cards is internal resistance to change (26 percent).
The top mechanism organizations employ to protect against P-Card fraud and misuse is the requirement of receipts for purchases (83 percent).
The number one factor driving organizations to focus on electronic payments, including P-cards is reducing overall payment costs (84 percent).
The number one step organizations are taking to increase P-Card usage is improved internal education on P-Card programs.

A full copy of the 2013 Purchasing Cards: Working to Simplify the Procure-to-Pay Process report can be downloaded for free HERE. Download your complimentary copy today.

JPMorgan Chase Exits the World of eInvoicing

by Henry Ijams, Managing Director, PayStream Advisors

Chase recently announced their plans to get out of the electronic invoice business. What does JP Morgan Chase/Xign’s Order-to-Pay decision mean for users of electronic invoicing platforms?

For current customers, it means they have to rapidly find a competent replacement provider in today’s confusing electronic invoicing and payment marketplace. PayStream Advisors also believes it provides customers with an opportunity to improve their vendor collaboration program, beyond just invoicing and payment. It means dramatically boosting vendor engagement and adoption. Let’s face it; Chase was not the greatest at supplier on boarding, especially over the past several years when they weren’t taking any new customers.

With Chase out of the eInvoicing picture, there is great opportunity with providers like Ariba, Taulia, OB10, Basware, and ADP. These providers have aggressive supplier onboarding programs that have proven success in the number of suppliers currently enrolled in their supplier networks. We expect these numbers to continue to grow as eInvoicing becomes even more prevalent

eInvoicing – What’s Next?

The current provider landscape is almost certain to change in the coming years. The electronic invoice marketplace is saturated with providers competing for $300 million in U.S. business that is growing at 12 percent per year.

PayStream estimates that a combined 850,000 U.S. suppliers are registered in networks and are actively providing electronic invoices. The problem: There are 10 million U.S. businesses engaging in B2B commerce. Electronic invoicing networks such as Ariba, Taulia, ADP, Basware, iPayables, Direct Commerce, Hubwoo, Transcepta, Corcentric, and Direct Insight have done a good job at onboarding suppliers. However, they have traditionally focused on the largest suppliers.

Emerging providers such as TradeShift, Nipendo, AvidXchange, Coupa, and Invoiceware have also witnessed success with supplier recruitment and are now starting to target smaller suppliers. Niche payment networks like BottomLine Technologies Paymode-X, U.S. Bank, PowerTrack/Syncada and Sungard whose solutions are primarily focused on payments, have also been successful recruiting suppliers to their network.

The interesting dilemma for someone searching for a new eInvoice solution to fill the J.P. Morgan void is how to migrate all their enrolled suppliers to a new platform. It also raises the question, what’s the value of a network when J.P. Morgan Chase Order-to-Pay was largely unsuccessful in signing up medium and smaller suppliers?

Here are some critical questions that need to be addressed before you consider a new solution.

Do you need to get all of your services from one provider?
Should you rethink your enrollment structure?
Are supplier fees going to be a hindrance to the growth of your platform?
Is a many-to-many network really that valuable for you?
Do you have global expansion aspirations?
What is the new, emerging, dynamic discount management opportunity?
Do single use accounts really add value to your platform?
Would ACH with dynamic discounting be a better opportunity?
How sophisticated is the provider’s onboarding?
Can the solution provider really help you grow your vendor base?
Should you be willing to pay gain share on your discount program?

PayStream has developed an electronic invoice solution provider assessment and RFP program to assist J.P. Morgan clients with their strategy decision and to provide an orderly transition to a new provider.

Here are the core program elements:

Understand objectives, develop solutions strategy and five-year vendor adoption goals.
Develop solution requirements document for electronic invoicing solution.
Develop, issue and score a request for proposal (RFP) with a selected list of relevant and capable electronic invoice providers.
Create a competitive environment for vendor review, capability discovery, and provider risk assessment.
Guide steering committee on optimal decision for long-term success.

PayStream’s Solution Radar

PayStream’s Solution Radar Scores Electronic Invoice and Purchase to Pay Solution Providers based on analysts 68 point requirements capabilities.

Contact to get the transition help you need.

SciQuest Acquires CombineNet, Gaining Market-Leading, Advanced Sourcing Technology

SciQuest, Inc. (NASDAQ: SQI), a provider of cloud-based business automation solutions for spend management, recently announced it has acquired CombineNet, a leading provider of advanced sourcing software to large companies with complex procurement needs. SciQuest purchased 100 percent of the outstanding stock of CombineNet, Inc. for total consideration of approximately $43 million comprised of approximately $26 million in cash and approximately 820,000 shares of common stock.

The acquisition expands SciQuest’s strategic sourcing footprint with an advanced, cloud-based tool that improves procurement decisions for spend categories that are typically beyond the capabilities of traditional eSourcing software. CombineNet’s solution is primarily designed for Forbes Global 2000 companies and other organizations that conduct high-value, complex sourcing events. CombineNet’s proprietary technology optimizes and evaluates complicated vendor bids and proposals, saving customers time and money. The software allows users to create highly-customizable online requests for proposals and run scenarios that balance a number of factors including cost, risk, timing, value and other important criteria with internal business rules and preferences. Customers can use the technology to acquire both direct and indirect resources within critical spend categories. CombineNet currently has approximately 100 customers across the globe including leaders in the retail, consumer packaged goods, restaurant and food and beverage manufacturing industries.

“CombineNet’s technology is a great complement to our existing sourcing software, Sourcing Director, and is highly rated by industry analysts. As a result, SciQuest can now enable customers to more easily aggregate and leverage their spending across all of their goods and services – from the straightforward to the most complex and strategic. Due to the constraints of traditional sourcing software, many companies are forced to split complex sourcing events into smaller, isolated components or utilize error-prone, manually intensive processes. These ad hoc approaches lead to suboptimal results, failing to capture the full amount of potential savings. Through CombineNet’s unique algorithms, multitenant SaaS architecture, deep understanding of best practices and 22 patents, we are acquiring the best solution in the advanced sourcing arena. We expect to capitalize on the demand for CombineNet’s leading solution in both the commercial market and our franchise markets,” said Stephen Wiehe, president and CEO of SciQuest. “We will commence integration activities immediately.”

Click here to view the entire SciQuest press release.

To learn more about SciQuest, download a complimentary copy of PayStream’s Electronic Procurement report titled Creating Buyer/Supplier Collaboration Through AP and Procurement. The report includes a detailed SciQuest profile and case study.

Nipendo Announces ROI Guarantee for E-Invoicing and Procure-to-Pay Automation

Innovative new pricing model lets customers pay only for automatically reconciled invoices processed straight through to ERP

Nipendo, a leading provider of Procure-to-Pay (P2P) automation platforms, recently announced three guarantees that will help companies maximize the value of their existing and future investments in P2P technologies.

The First Nipendo Guarantee: 90 Percent+ automated invoice reconciliation:

Automating the entire Purchase-to-Pay process, Nipendo enables leading global enterprises across industries to achieve over 90 percent automated invoice reconciliation with straight through processing to their ERP systems, touch-free and errorless. With a range of free and low-cost options that fit the needs of companies of all sizes, Nipendo removes the barriers to widespread adoption of the solution across the supplier ecosystem. Connecting to the Nipendo platform is quick and simple, with no complex customizations, data mapping, or changes to existing business processes.

The Second Nipendo Guarantee: leverage your existing solutions:

The Nipendo Supplier Cloud platform enables customers to maximize any investments they have made in buyer-supplier connectivity solutions—be it electronic invoicing, OCR, EDI, or a supplier portal—and achieve the next level of P2P process automation and reconciliation with invoices from any of these sources processed straight through in an errorless and effortless manner. By ensuring interoperability with existing solutions, Nipendo allows companies to realize the benefits of advanced P2P automation capabilities without forcing a wholesale replacement of existing infrastructure.

The Third Nipendo Guarantee: pay only for automatically reconciled invoices:

Nipendo has introduced a revolutionary pay-for-performance pricing model that provides companies with the ultimate value guarantee. With this new pricing model, buyer organizations only pay for invoices that are automatically validated based on their business rules, processed straight through to their ERP without any errors, fully reconciled and ready for payment—all without any manual effort.

PayStream research shows that the cost to process an electronic invoice is significantly lower than the cost to process a paper invoice. A reduction in overall processing costs is the top factor driving organizations to migrate away from paper based invoices to electronic invoicing. Survey results show that while paper continues to dominate, electronic invoicing has witnessed an 8 percent increase from 14 percent in 2011 to 22 percent in 2012. PayStream predicts that paper will continue to wane as more companies worldwide make the switch to electronic invoicing to reap the multitude of benefits, including reduced processing costs, increased visibility and quicker processing cycle times, just to name a few.

“Many large enterprises already have some solutions in place to automate supplier communication, but the typical levels of straight-through processing are rather disappointing. Our goal is to help organizations get the most value out of their existing solutions by adding a layer of P2P process automation that is currently lacking. We are excited to extend the same benefits that our existing customers achieved shortly after implementing Nipendo, with over 90 percent of their suppliers on-board and over 90 percent of supplier invoices processed straight through to their ERP, fully reconciled, error-free and touch-free. This level of automation is now an achievable goal for any buyer organization,” said Eyal Rosenberg, Nipendo’s Founder and CEO.

Click here to view the entire Nipendo press release.

To learn more about the benefits of electronic invoicing and Procure-to-Pay automation solutions, download complimentary research reports and white papers at PayStream’s Research Vault.

Basware and MasterCard Partner to Transform the way Businesses Pay and Get Paid

Basware, a leading provider of e-invoicing and purchase-to-pay solutions has partnered with MasterCard, one of the world’s largest payment networks, to launch an electronic payment solution that ensures suppliers are paid fast upon invoice approval, while extending payment terms for buyers.

Companies worldwide are looking to new ways to grasp the benefits that electronic invoicing and purchase-to-pay can bring. Traditionally, businesses, even highly successful ones, can suffer financial performance issues caused by long payment cycles – especially when dealing with costly international payments. This is caused by a reliance on paper-based payments, labor-intensive processes, poor remittance data and low confidence in cash flow management; an issue that can even trigger issues in supply assurance. MasterCard and Basware will transform the way that companies do business with each other through this new single global payment solution.

The e-payment service is enabled by the Basware Commerce Network, which is connected to the MasterCard global payment network and leverages MasterCard’s unique suite of payments products. This will deliver immediate cost and efficiency savings to companies of all sizes.

Basware’s Commerce Network already processes over 50 million invoices annually, totaling more than US$420 billion across 900,000 trading partners in 100 countries. This scope and reach is combined with MasterCard’s international payment network covering over 150 currencies across more than 210 countries and approximately 20,000 financial institutions. The new service will make sure suppliers get guaranteed early payment without placing any additional burden on buyers, creating a vital economic buffer for businesses of all sizes.

Click here to view the entire Basware press release.

Download a complimentary copy of PayStream’s 2013 Invoice and Workflow Automation Benchmark report to learn more about Basware and the benefits of electronic invoicing. The report includes a detailed Basware profile.

eInvoicing – What’s Next?

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