One of the “buzz”-words within the “e” industry is dynamic discounting. Another supply chain financing. We met Taulia two years back in Barcelona and the buzz was not so loud, however everyone were speaking of value added services as the future within e-invoicing for one.
It sounds ridiculously simple – the one who needs the cash the most should have it. Historically that has though always been the buyer since the buyer has the power and key is to sit on money, or money spent, for as long as possible, using suppliers as banks. And thus the only real tool for suppliers e-invoicing drive (other than being customer demand compliant) fail. And perhaps worse, not enabling innovative partnerships with a win-win mindset.
Listen to this interview to go behind that common knowledge. We have spoken to several supply chain managers as well as hard core cash management and working capital tigers and they have said – (of course this is also in Sweden where payment terms of 30-40 (actual payment terms) days payment terms are most common – 1. we already do that (dynamic discounting) through cash discounts and 2. we need that money to re-invest in our own supply chain/business
Listen to the answers to those statements.
Also, forecasting – how do you do forecasting with dynamic discounting? A possible nightmare for those who live and breathe accurate forecasting reports?
We give you Markus Ament, one of the founders of Taulia (and an inspirational person by nature) and an interview at last weeks EXPP in Warsaw.