Kyriba dd webinar ss
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The document outlines dynamic discounting as a pivotal component of supply chain finance that allows buyers to offer flexible payment terms to suppliers, enabling early payments in exchange for discounts. Benefits include cash optimization for buyers and improved cash flow management for suppliers, with tools provided by the Kyriba platform facilitating these transactions. The platform also enhances visibility and efficiency in managing invoices across multiple banks and regions.
Kyriba dd webinar ss
- 1. DYNAMIC DISCOUNTING AND ITS KEY BENEFITS November 7th, 2013 © 2013 Kyriba Corporation. All rights reserved. 1 PRIVILEGED & CONFIDENTIAL. 1
- 2. Product Overview © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 2
- 3. Supply Chain Finance • Payable Financing / Reverse Factoring - first in a suite of Supply Chain Finance modules • Dynamic Discounting • Leverages Payment Factory and Cash Visibility capabilities within Kyriba © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 3
- 4. Details of Dynamic Discounting • Buyer offers dynamic payment terms to its suppliers • Should a supplier choose to be paid earlier than term, buyer earns discount • Buyer sets and controls the discount rate that is dynamically calculated for entire term of invoice • Opportunity for buyer to earn discounts on its entire spend, not just pre-negotiated discount terms from a small percentage of suppliers • Allows suppliers to control payment timing and manage their cash flows © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 4
- 5. Benefits – Dynamic Discounting Buyer Supplier • A valuable tool for cash optimization - alternative for investing short term excess liquidity • In control of payment receipt, can request payment at any point of invoice term, depending on working capital needs • Earn above market, risk free returns on annual spend by paying suppliers in advance • Flexibility – enable or stop early payment options at any time • Minimize counterparty risk from improved financial health through the supply chain © 2013 Kyriba Corporation. All rights reserved. • Alternate source of working capital finance • Visibility of approved invoices and payments to better manage working capital needs PRIVILEGED & CONFIDENTIAL. 5
- 6. • Functional Workflow - Dynamic Discounting Purchase order Product delivery Invoice Approved invoice Dynamic discount offer Request for early payment Supplier Buyer Supply chain finance platform Early payment Payment of non-discounted invoices at maturity © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 6
- 7. Impact of Dynamic Discounting
- 8. Solutions Impacting Working Capital in S2S Space Impact on Buyer Solution Working Capital EBIT Process Efficiency Impact on Supplier Working Capital EBIT Payment Term Management Early Pay Discounting Dynamic Discounting Supply Chain Finance Tools Payable Financing Purchasing Cards1 Optimal Purchasing Channels Optimal Payment Channels2 e-Procurement e-Invoicing Strategic Sourcing and Procurement Notes: 1 Assumes monthly settlement cycle with issuing bank 2 Assumes Buyer starts with all check payments © 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. Positive Neutral Negative 8
- 9. SCF Tools’ Benefits for Companies with $1B in spend and 100K Invoices and Payments Financial Benefit to Buyer Solution Payment Term Management Early Pay Discounting Dynamic Discounting Payable Financing Purchasing Cards Other Purchasing Channels Other Payment Channels Working Capital Impact Cost Reduction ($M) 6 - 12 days DPO improvement - 2 - 3 days DPO degradation $1.2M 5 - 8 days DPO degradation $2.0M 12 - 20 days DPO improvement - 2 - 3 days DPO improvement $0.9M Needs further evaluation 1 - 2 days DPO degradation $0.1M e-Procurement - $0.6M e-Invoicing - $0.4M Strategic Sourcing and Procurement - $2M 7 days DPO improvement $7M © 2012 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 9
- 10. Kyriba Supply Chain Finance Platform
- 11. Kyriba SCF Platform • Multibank – Enables participation from multiple funding sources – Alleviates credit exposure issues, reduces counterparty risk – Flexibility for buyer to choose banks per region • Visibility – Centralized workflow: Buyer, Supplier, Bank – Provides real-time visibility to invoices approved for payment by buyer, to suppliers and banks • Ease of Use – Easy to work with multiple banks as well as with one bank – Encourages onboarding of suppliers © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 11
- 12. Kyriba SCF Platform Integrates with Treasury • Cash forecasts to optimize working capital decision making • Payment of financed and non-financed invoices from one platform Integrated SCF Solution • Administer a global Dynamic Discounting and Payable financing solution, on one integrated platform Scalable • Improve productivity so that program can expand (but team doesn’t have to): • • • • Bank connections ERP Integration Global Reach Web-based © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 12
- 13. Kyriba SCF Platform Access by all parties: • Buyers • Suppliers • Financial Partners Integration with Treasury Workflow: • Cash Forecast • Payments Import from ERPs Export Finance Request Buyer Financial Partners Suppliers Forecast Creation Payment Creation © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 13
- 14. Additional Resources Treasury Management Systems and SCF white paper http://goo.gl/YceL3P SCF Payable and Receivable Solutions guide http://goo.gl/byNxPA Improving Working Capital infographic http://goo.gl/LTIY1c Kyriba Trade Solutions fact sheet http://goo.gl/AbYm2f © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 14
- 15. Contact Kyriba kyriba.com/blog twitter.com/kyribacorp linkedin.com/company/kyriba-corporation facebook.com/kyribacorp slideshare.com/kyriba youtube.com/kyribacorp © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 15
Editor's Notes
- #4: ELLIE: should we change this to TRADE SOLUTIONS as that’s how we call it now?
- #5: ELLIE: should we change this to TRADE SOLUTIONS as that’s how we call it now?
- #9: ELLIE: I have made the title “There are several solutions that impact working capital in the S2S space “ shorter – see above
- #10: ELLIE: I’ve shortened this title “For a Company with $1B in spend and 100K invoices and payments, the benefits are substantial, especially for the SCF tools” – see above