Supply Chain Finance Solutions

Companies are placing a greater emphasis on supply chain finance solutions as part of their overall financial strategy and business goals. The financial supply chain is the flow of money around the buying and selling of business goods. As companies continually try to increase bottom-line revenue and profits, managing the financial supply chain effectively is a top priority.

How to Choose a Supply Chain Finance Solutions Vendor

Selecting a partner to handle your company’s financial supply chain and cash management initiatives is an important decision. Companies need to weigh the pros and cons of each vendor based on their unique requirements, business model and long-term business goals. When choosing a solutions provider, it’s critical to approach it as a long term financial business decision and understand how each offering will impact your organization. There are several key criteria to consider when engaging a supply chain finance solutions provider, including:

  • Electronic Invoicing Capabilities: Electronic invoicing can dramatically improve supply chain financing processes. With Direct Insite’s PAYBOX® platform that enables electronic invoicing, buyers can electronically receive and route supplier invoices. When the invoice is approved internally, the status is updated online and visible to the appropriate supplier, who can wait for the full payment or sell the invoice to a third-party intermediary and receive cash in as little as 24 hours. If the invoice is sold, the third-party intermediary or bank will receive payment when the buyer pays the invoice.
  • Dynamic Discounting: Dynamic discounting allows sellers to offer discounts to buyers based on a sliding scale depending on how early they pay invoices. It lets sellers extend the discount period beyond the typical 10-day window any time up to the invoice due date. Buyers and sellers can negotiate terms, share messages and seek approvals right from Direct Insite’s PAYBOX® portal. Dynamic discounting benefits both suppliers and sellers. Sellers enjoy working capital improvements, cash flow optimization and more predictable payment cycles. For buyers, dynamic discounting enables them to capture more discounts, save money and strengthen supplier relationships.
  • Robust Supplier Network: According to the Aberdeen Group, enterprises using supplier networks as a component of their overall supply chain financing programs had 1.5 times more financing agreements and 4.5 times more discounting arrangements versus organizations that do not leverage supplier networks. Direct Insite’s PAYBOX® solution utilizes a shared supplier network with more than 100,000 supplier participants. PAYBOX® enables buyers and suppliers to trade information, settle invoices and negotiate right from the portal. For companies that need more customized solutions, Direct Insite’s solution can set up permissions and isolate supplier groups as needed. Direct Insite actively recruits suppliers to participate in its PAYBOX® network for a more cohesive user experience and to expedite the transition from paper to electronic invoices.

Direct Insite’s PAYBOX® platform is a holistic solution that addresses all enterprise financial supply chain needs. With a robust feature set, easy-to-use interface and comprehensive reporting tools, PAYBOX® transforms organizations’ AP and AR processes. For more information about how electronic invoicing and ePayment technology can benefit your organization, give us a call today at(631) 873-2909

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