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Dynamic Discounting and Discount Management

Now you can optimize your cash and earn healthier returns at the same time.

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Collaborate on early-payment discounts with suppliers on Ariba Network, with dynamic discounting and discount management

Payment capability Supply chain finance Working capital management services

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

Product Features

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.

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.

Discounting flexibility

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.

Adoption assistance

SAP Ariba’s solution experts can help drive adoption within your organization and among your supplier base.

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Resources

Optimize cash and earn healthier returns

SAP Ariba gives you discount management technology and services to maximize your discount savings, earn return on your cash deployed, and increase supplier participation.

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More Resources

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.

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