Collaborate with suppliers on early-payment discounts using discount management with dynamic discounting
With SAP Ariba Discount Management and working capital management services, not only can you boost your suppliers’ liquidity, but you can also earn far greater returns than short-term cash investments provide.
This can be especially helpful for stabilizing your supply chain during rocky economic periods. Not only can you help your strategic suppliers maintain cash flow, but you can also better control your costs while optimizing working capital.
Collaborating with the suppliers you choose, you'll use on-demand tools for automating the early-payment discounting process, from initial offer through final capture. It all transpires over Ariba Network, the world’s largest business network. If a supplier isn’t already on it, it’s easy to enable them.
You’ll then be fully equipped to:
Manage payables and cash with greater precision, control, and visibility
Expand discount capture across targeted suppliers, spend, and invoices
Enforce pre-negotiated contract and discount terms
Employ tools for capturing additional sliding scale discounts
Reduced supply risk
Getting payments to suppliers when they are short on cash can help mitigate the risk of supply chain disruption while reducing your supply costs.
Under your control
You set business rules to initiate early payments only when you’re assured discounting will deliver your required internal rate of return.
Set it and forget it
With one option, you set your preferred discounting parameters once. Upon invoice approval, automation takes over to capture pre-determined discounts.
Set always-on prorated discount terms that capture discounts on a sliding scale. Or use dynamic discounting, and capture discounts based on ad-hoc supplier cash flow needs.
Time and cost savings
Eliminate slow and costly processes and accelerate the cash conversion cycle. Minimize supplier inquiry calls with automated notifications of discount offers and approvals.
Boost supplier satisfaction
Web-based tools equip suppliers to collaborate with you on payment timing, while an easy-to-understand dashboard keeps them apprised of payment status.
Offer strategic on-boarding
Our dedicated services team can help you analyze, categorize, and organize your suppliers for participation based on their predisposition to discounting.
SAP Ariba’s solution experts can help drive adoption within your organization and among your supplier base.
Frequently Asked Questions
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