Power of PAYBOX®
Dynamic Discounting and Electronic Invoicing
Dynamic discounting was a hot topic at this week’s Fusion 2012 conference in Nashville. But many conference attendees admitted that they are still struggling to determine a suitable approach to integrating dynamic discounting into their company’s working capital management program.
A recently published study conducted by PayStream Advisors, and sponsored by Direct Insite, illustrates this point.
Eighty-four percent of AP professionals who responded to the survey rank the ability to capture discounts as “important” or “a priority” for their organizations. However, only 27 percent of the respondents stated that their companies were actually able to capture discounts consistently. In fact, the percentage of companies missing more than 10 percent of discounts increased to 27 percent from 23 percent compared to the findings of a PayStream Advisors study in 2010.
The problem: traditional paper invoice processes result in lengthy approval and payment cycles that keep companies from optimizing their discounts. The majority of today's payables and collection processes are largely manual. Not only are these processes costly and inefficient, they also make it difficult for organizations to control and track financial transactions.
Embracing automation — specifically, the use of electronic invoicing, automated matching, and workflow management — can decrease the invoice processing cycle from 23 days to only 5 days, not only reducing costs and inefficiencies, but also positioning organizations to capture more discounts.
Not surprisingly, Direct Insite is seeing more demand for its e-invoicing solutions from companies looking for ways to improve working capital management.
To read the entire study, click here.