Collaborate on early-payment discounts with suppliers on Ariba Network, with dynamic discounting and discount management
SAP Ariba Payables solution includes discounting capabilities. Not only can you use them to boost your suppliers’ liquidity, you can also earn far greater returns than short-term cash investments provide.
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 as well
Better returns on cash
Discounting can deliver better returns than playing float. For example, traditional 2/10 net 30 terms earn an APR of 36.5 percent.
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.
Global P2P Process Owner, Global Biopharmaceutical Company
The net effect (with Ariba) has been an extension of DPO while increasing early payment discounts to have a real impact on bottom-line savings.