Global Electronic Invoicing

Transcription

1 Global Electronic Invoicing The State of AP Automation Worldwide Q Featuring Insights on... Technology Adoption U.S. vs. Global Landscape Underwritten in part by Ariba GXS Taulia Tradeshift Changes in Payment Types Electronic Invoice Adoption U.S. vs. Global Landscape Automation Goals U.S. vs. Global Landscape Electronic Invoice Drivers AP Automation & Supply Chain Finance

2 Table of Contents Executive Summary...1 Global einvoicing Survey...2 Survey Respondents...4 Nature of the AP Department...5 Paper Still Dominates...7 Drive Towards Straight Through Processing...8 Technology Adoption U.S. vs. Global Landscape...9 Payment Types...12 Electronic Invoices U.S. vs. Global Landscape...14 einvoice Challenges...16 einvoice Drivers...17 AP Automation and Supply Chain Finance...18 Ariba...19 GXS...23 Taulia...26 Tradeshift Conclusion...33 About PayStream Advisors...33 About Purchasing Insight Group...33

3 Executive Summary The benefits of electronic invoicing (einvoicing) have been touted for years less paper and manual data entry equals time and cost savings that can directly impact a company s bottom line. However, there seems to be a growing acceptance within the industry that einvoicing is not an end in itself, but rather part of an overall automation process. While there has been an abundant amount of research on einvoicing as a whole, little research exists on the current state of the global einvoice market. This void of missing global einvoice data and information is what prompted PayStream Advisors and Purchasing Insight to team together to release a global einvoice report based on new global survey data. The purpose of this report is to analyze the survey data and present readers with current, up to date global einvoicing trends, statistics and state of the market. Survey data reveals rapid growth in the adoption of einvoicing and significant changes in the motivations for einvoice implementation. In analyzing the data, three key insights immerged that are worth looking at. Key Insight 1 Electronic Payments The United States is out of step with the rest of the world when it comes to business to business (B2B) payments. Survey data shows that a large number of U.S. companies still prefer paper checks over electronic payments (epayments). Granted, U.S companies are reducing the number of paper checks written, but they still lag behind the rest of the world. Purchasing Cards (P-Cards) are the exception to this rule. The explosive growth of P-Cards in the U.S. shows no signs of slowing and the rest of the world has a lot of catching up to do in terms of P-Card growth. Key Insight 2 Electronic Invoicing Survey results reveal that we have hit the tipping point in electronic invoice adoption. Large companies have largely automated and thanks to innovations like Software-as-a-Service (SaaS), free supplier portals, dynamic discounting and mobile transactional capabilities; the middle market is now opening up. However, there s still a long journey ahead. Key Insight 3 Financial Supply Chain Management The big picture of the overall automation process involves integrated accounting systems, workflow, communications, supplier management, improved cash flow and working capital. These are all driving factors for accounts payable automation initiatives. While cost reduction and efficiency are still main drivers, more companies are now seeing the big picture and exactly where einvoicing fits in that picture to help turn the AP department into a profit center.

4 Global einvoice Survey einvoicing has been at the forefront of AP process improvements for many organizations for well over a decade. The prospect of creating a streamlined finance process by allowing buyers and suppliers Enterprise Resource Planning (ERP) systems to directly communicate with each other is tantalizing. The thought of creating this streamlined approach for global companies is irresistible. For many reasons however, a vast number of organizations have resisted electronic invoicing and continue to operate utilizing cumbersome and time consuming paper invoices. To date, there has been very little research done on a global level regarding the current state of the global electronic invoice market, despite the fact that many international organizations are currently seeking global einvoice solutions to streamline their AP processes. For this reason, PayStream Advisors teamed with Purchasing Insight to develop a detailed global einvoice report to identify the current state of the market. Methodology Figure 1 In the third quarter of 2012, PayStream Advisors and Purchasing Insight launched a global einvoicing survey to AP, finance and treasury personnel in a wide range of industries. The survey received over 200 responses, which were analyzed for the creation of this global einvoice report. The majority of respondents were from the European (23 percent) and U.S. (35 percent) markets, and therefore we worked to analyze this data separately. However, survey respondents were worldwide, which allowed us a detailed look into the global market. Figure 1 illustrates the various regions of the world that survey responses were received. Global einvoice survey responses were received from 6 regions of the world. Asia Pacific 40% Europe 62% Latin America 27% Middle East 22% North America 46% Africa 23%

5 The survey has a truly global reach with responses from six regions of the world. As stated, North America and Europe dominate, but Asia Pacific, Latin America, the Middle East and even Africa contribute respectable proportions of the survey. Please note that survey respondents were asked to indicate the geographical regions in which their organization conducts business. They were advised to choose all regions that apply. Based on our experience and the number of respondents, all survey questions have a confidence level of +/-5 percent.

6 Figure 2 Various industries represented in the global einvoice survey. Survey Respondents Survey responses were gathered from a wide range of individuals, both in terms of industry spread and size of their organization. As seen in Figure 2, there is a predominance of responses from the healthcare and professional services. This is a reflection of the population surveyed in North America, but apart from these two industries, there is a wide and more even spread across many industries. Healthcare Professional Services Consumer Products Retail Higher Education & Research High Tech Banking Public Sector Wholesale Distribution Engineering & Construction Travel & Logistics Services Insurance Oil & Gas Life Sciences Other Figure 3 Company size (based on annual revenue) represented in the global einvoice survey. Asia Pacific 40% Over $2.5 Billion Europe 62% Latin America 27% $1 Bilion - $2.5 Billion Under $250 Million Middle East 22% $250 Million - $1 Billion Africa 23% North America 46%

7 Nature of the AP Department Historically, Purchase to Pay (P2P) solutions reside within the procurement domain. The emergence and maturity of eprocurement networks in the late 90 s established a strong precedent for the utilization of internet technologies in a B2B context. But more recently, there has been a growing trend for finance departments to grab hold of the P2P reigns as the need to adopt a more holistic approach has gained more acceptance. This shift of ownership of P2P toward finance is transformational. It allows the finance community and in particular AP departments to relinquish the traditional back office mentality and begin to proactively manage key parts of their business. The full breadth of AP automation including invoice receipt, document imaging, einvoicing, data extraction, content management, approval workflow, and reporting and analysis are used to drive processes efficiency and lower costs. AP automation has quickly become a lead component of a holistic P2P approach. As technologically advanced companies have proved through the successful implementation of such holistic approaches, many additional financial benefits are being revealed that directly impact the bottom line, including the ability pay invoices on-time and even capture new discounts. Paying on-time not only avoids late fees, but it drastically improves the relationship between buyers and their suppliers; so much so that financial supply chain management is now becoming a driver in itself for AP automation. Figure 4 Breakdown of Companies by Innovation Level 28% 35% 20% 17% We are an innovator we have made significant investments in automation We are evaluating some advanced tools, but have not yet adopted them We have adopted some advanced technology, but it is not widely used and has limited impact We have not evaluated financial automation technology and have no immediate plans to do so

8 With nearly half of all finance professionals surveyed saving they ve either got an automation solution or are actively looking for one, companies are keenly aware of the benefits that automation carries. See Figure 4 for the breakdown of how survey respondents ranked their companies use of financial automation technology in comparison to their peers.

9 Paper Still Dominates While paper invoices are waning, early predictions of the death of paper were vastly exaggerated. We have yet to witness a truly paperless office, despite 30 years of hype and expectation. The new global einvoice research reveals that only 16 percent of AP departments receive the majority of their invoices electronically and a paltry 5 percent receive more than 75 percent of invoices electronically. The majority (60 percent) of respondents report that they continue to receive over 90 percent of their invoices on paper. Figure 5 Less Than 10% Invoices Received Electronically 5% 11% 11-25% 25-50% 50-75% 12% 60% More Than 75% 12%

10 Drive Towards Straight Through Processing Despite the number of companies that are currently trading invoices on paper, survey respondents are not without ambition, and analysts see a current trend that respondents are aiming high when it comes to AP automation goals. Half of survey respondents reveal they are looking to implement einvoicing in the coming year, and well over half of those (31 percent) are looking to achieve at least 75 percent electronic. Figure Global einvoice Automation Goals Achieve at least 75% electronic Achieve at least 50% electronic 16% Achieve at least 40% electronic 34% We don t have a specific goal We haven t implemented electronic invoicing 31% 6% 13% It begs the question is this a realistic goal? The high number of respondents looking to convert the majority of their invoices to electronic may be a bit naïve, but analysts are witnessing a trend towards organizations exploring Straight Through Processing (STP). STP or Touchless Processing allows automated posting without AP staff intervention, allowing AP departments to focus their energies on analytical tasks.

11 Technology Adoption U.S. vs. Global Landscape There is an extraordinary contrast in the adoption of P2P technologies when we compare the U.S. market with the global view. While the existing use of electronic invoicing (and for the purpose of the survey we group all forms of electronic invoicing together including EDI) the goals of U.S. organizations are markedly lower. But it is in the area of payments that we see the most marked difference. Electronic banking and einvoicing has not sparked as much adoption in the U.S. versus other regions of the world, despite the fact that the U.S. is one of the most technologically advanced markets on the planet. It s been observed before, and our survey results reinforce that American s like paper. Even in Africa where the banking infrastructure does not exist, the rapid growth of mobile phone adoption has brought about a revolution in SMS banking, allowing people in remote areas to enjoy the benefits of electronic payments. But this is not universally true of all electronic payment types. When we consider P-Card usage, the U.S. market reflects the opposite trend. Purchasing Cards have had much more success in the U.S. then other regions. Growth appears to have plateaued in Europe, for numerous reasons such as multiple currencies, acceptance rates, and culture; however, there is no sign of P-Card growth slowing in North America. Financial automation strengths vary based on the different regions of the world. On a global basis, analysts are witnessing an overall increase in the use of electronic payments. For example, Purchasing Cards are not utilized as much in the European market as they are in the U.S.; however, Automated Clearing Houses (ACH) is a popular epayments choice throughout Europe, unlike the U.S. Electronic Invoicing The existing adoption levels of electronic invoicing show no marked difference when we compare the U.S. market against the global market. Most (60 percent) of organizations have yet to deploy the use of einvoicing, accepting less than 10 percent of their invoices electronically, and only 16 percent claim to accept the majority of the invoices via EDI or other electronic form. But with nearly 30 percent receiving over 25 percent of their invoices electronically, analysts predict that we are past the early adoption phase of electronic invoicing and should witness continuing gains in einvoice adoption. Existing users of einvoicing solutions are now looking for ways to expand efficiency and cost savings through discount management and STP. There is further evidence that we are at or past the tipping point when we look at einvoicing goals and in this respect, there is a difference between the U.S. market and the global view. Of those surveyed, 50 percent have not implemented einvoicing or have specific goals, while 31 percent report they would like to achieve at least 75 percent electronic.

12 More Than 75% Figure 7 5% Global einvoicing Adoption Rates 50-75% 26-50% Less Than 10% 11-25% In the U.S. 59 percent of respondents have not implemented einvoicing or have specific goals, and 27 percent are looking to achieve at least 75 percent electronic. Figure 8 Global einvoice Adoption Goals Achieve at least 75% electronic Achieve at least 50% electronic 16% Achieve at least 40% electronic 34% We don t have a specific goal We haven t implemented electronic invoicing 31% 6% 13%

13 Achieve at least 75% electronic Figure 9 U.S. einvoicing Adoption Goals 11% 27% Achieve at least 50% electronic Achieve at least 40% electronic We don t have a specific goal We haven t implemented electronic invoicing 48% 11% 3% When comparing the global market (50 percent) to the U.S. market (41 percent), the global market is aiming higher in their adoption goals There are a number of reasons for this outcome. Outside of the U.S. there are a number of drivers for einvoicing. The European commission is encouraging public sectors to embrace einvoicing and in parts of Latin America, einvoicing it is being mandated. While in the former territory the driver is efficiency in a complex tax environment, in the latter it is to maximize tax collection through central control and management.

14 Payment Types Figure 10 Global Payment Types Over the Past Two Years Purchasing Card usage in the U.S. has increased tremendously when compared to the other regions of the world. Globally there has been a significant move away from paper checks which has led to the overall increase in the usage of epayments. U.S. Payment Types over the Past Two Years 68% 78% Increased Stayed The Same Decreased Global Payment Types Over the Past Two Years 48% 51% 48% 56% 56% 6% 26% 21% 1% 1% 9% 29% 29% 0% 15% 5% Checks Electronic Payments P-Cards Checks Electronic Payments P-Cards Figure 11 Primary Reasons Global Internal resistance to change 20% Organizations do not use epayments Concerns around security / fraud 11% Supplier resistance to accept electronic payments 21% Difficulty in collecting banking information from suppliers 5% Difficulty in integrating electronic payments with AP systems 19% Other, please specify 24%

15 Worldwide, paper checks are declining as all forms of electronic payments continue to increase. A noticeable difference worth mentioning again is the increased use of P-Cards in the U.S. (48 percent) versus worldwide (15 percent). Despite the P-Cards value as a means of recording VAT compliant financial transactions that can negate the need for an invoice, P-Cards have enjoyed limited success in Europe while in North America purchasing cards are seen as a core P2P technology. Supplier resistance to accept electronic payments ranked as the primary reason organizations globally do not use electronic payments, see Figure 11. For this reason, solution providers have implemented aggressive supplier onboarding programs to help clients convert suppliers to einvoicing.

16 Electronic Invoices U.S. vs. Global Landscape Figure 12 Global Automation Goals % Front-End Imaging Purchasing Cards 5% 20% Automated Workflow 45% Electronic Invoicing 22% Electronic Payments Figure 13 U.S. Automation Goals 2013 Purchasing Cards 4% 5% 8% 11% Front-end Front-End imaging 20% 21% Imaging Automated workflow Workflow 45% 37% Electronic Invoicing Electronic Invoicing 22% 27% Electronic payments Electronic Payments

17 Analysts expect significant growth in the adoption of electronic invoicing. We are arguably at or even past the tipping point with close to 30 percent of organizations now taking a close look at einvoicing. Both globally and within the U.S. market, electronic invoicing ranked as the top automation goal for Electronic payments ranked second with 22 percent of respondents and purchasing cards ranked third at 20 percent.

18 einvoice Challenges There is a consistent view of the challenges faced in implementing an einvoice solution. Internal organizational barriers and supplier integration are seen universally as the biggest challenges to overcome in einvoice adoption. Interestingly, concerns for suppliers in terms of cost and ease of use are cited as significant concerns. This is a marked difference from the heyday of EDI when suppliers were simply expected to comply and pick up the substantial cost of implementation. Also notable is the confidence in solution providers to accommodate cross border and tax compliance issues, which most likely reflects the maturity of the key einvoice players. Figure 14 Global einvoice Challenges Cost for suppliers 25% Identifying supplier contacts 10% Communicating the benefits with suppliers 26% Internal organization barriers 44% Integration with suppliers 56% Offering supplier easy to use tools 36% Tax compliance 16% International / Cross Border Trading 10%

19 einvoicing Drivers Automating accounts payable by using electronic invoicing rather than paper and manual processes is seen by many as a no-brainer. Reduced processing costs, faster approvals and elimination of paper are obvious and compelling benefits. But what are the actual drivers for change? It is no surprise to learn that these drivers are confirmed by our research. Reduced cost, removal of paper and speeding up of the approval cycle are the top priorities. There is little discrepancy between the survey results when comparing the U.S. to the global market. Interestingly, cash management ranks fourth and does not relate to process efficiency. This is particularly interesting because in the early days of einvoicing, this was off the radar from a driver s perspective and it is worth drilling down deeper into the data to understand why cash management is now appearing on the einvoice agenda. Figure 15 Benefits of Electronic Invoicing Reduce overall processing cost 56% Speed up invoice approval cycle times 38% Reduce lost invoices 24% Remove paper from A/P department 43% Better cash management 28% Strengthen supplier relationships 4% Improve visibility into spend 20% Better invoice audit capabilities 14% Obtaining incremental supplier dynamic discounts 8%

20 AP Automation and Supply Chain Finance It is interesting to see that cash management is a driver for einvoicing, so we looked deeper into the data and an even more interesting trend emerged. The driver for cash management is most marked amongst those organizations at the very early stage of their implementation journey, receiving less than 10 percent of their invoices electronically, and for those at a very mature stage receiving greater than 75 percent electronically. Figure 16 Level of einvoice Automation More than 75% 50-75% 26-50% 11-25% Less than 10% There is a clear and likely reason why this is the case. For companies at a mature stage of einvoice implementation, they have witnessed that one of the key benefits of einvoicing is increased speed of invoice approval. Typically, in a non-automated environment, it takes over 22 days to approve an invoice for payment. This means that there is little opportunity to gain discounts for early payment because early payment is simply not possible. In an automated environment, it s possible to have an invoice ready to pay in a matter of a few days. This opens up the possibility to leverage that efficiency and negotiate and claim early payment discounts. In an economy where many suppliers struggle to obtain credit, this is especially advantageous. The original business case for einvoicing that predicted AP efficiencies are being dwarfed by the significant returns that can be obtained through financial supply chain management. This also explains why companies embarking on new automation programs cite cash management as a key driver of einvoicing. The shape of the AP automation business case has changed and cash management and the benefits derived from financial supply chain management are now a major component.

21 Ariba Ariba, an SAP company, is the world s business commerce network. Ariba combines industry-leading cloud-based applications with the world s largest web-based trading community to help companies discover and collaborate with a global network of partners. Using the Ariba Network, businesses of all sizes can connect to their trading partners anywhere, at any time from any application or device to buy, sell and manage their cash more efficiently and effectively than ever before. Companies around the world use the Ariba Network to simplify interenterprise commerce and enhance the results that they deliver. Join them at www. ariba.com. Ariba Collaborative Finance Solutions cover the Procure-to-Pay process, from smart invoicing and paper invoice conversion to integrated electronic payment, working capital management, and supplier enablement program management. These solutions and services enable global e-invoicing in more than 70 currencies, as well as digital signature authentication, VAT/tax compliance, and data archiving. Ariba s solution supports 18 languages and is available in all geographic regions of the world, making it a truly global solution. Founded 1996 Headquarters Sunnyvale, CA Other Locations 40 offices in 21 countries, including North and South America, Europe, Asia/Pacific and Australia Employees 2,432 Revenues ~$500M for FY 2012 Customers 800,000 + trading partners End Users ~5 million Annual Transaction >$320 billion + Volume Industry Segments Consumer goods, distribution, financial services, healthcare and pharmaceutical, manufacturing, oil and gas, public sector, publishing, retail, services, telecom, utilities, among others Key Accounts Key clients are market leaders in our target verticals. A small sample includes AstraZeneca, Bank of America, Entergy, GlaxoSmithKline. Other testimonials are available at: Awards / Recognitions Technology Excellence Awards: Leading P2P Technology 2012, PayStream Advisors; Best e-procurement Solution Global Finance magazine: 100 Great Supply Chain Partner, SupplyChainBrain: Ten Best Web Support Sites, Association of Support Professionals

22 Partners / Resellers IBM, ScanOne, Logica, TrustWeaver, Hubspan, and Microsoft. BPO providers Genpact, WNS and Accenture. Bank reseller Wells Fargo. The Receivables Exchange for receivables financing. Solution Overview Ariba Collaborative Finance Solutions Suite provides full-circle functionality from supplier enablement and electronic purchase order (PO) delivery to electronic processing of PO and non-po invoices, electronic payments, and dynamic payables discounting. Ariba s solutions are cloud based and scale to accommodate any customer requirements, including global companies with many different systems, myriad document types, thousands of suppliers, billions of dollars in annual spend, and support for many different currencies. Ariba offers comprehensive and flexible integration, including support for Oracle Fusion Middleware, SAP NetWeaver, Dell Boomi Atoms for connecting to 60+ Finance Packages and other middleware that connects back office systems to the Ariba Network and subsequently all participating suppliers. Supplier Enablement Ariba has made supplier enablement a top priority, with more than 400+ professionals involved in the supplier enablement process. The Ariba supplier enablement team brings more than a decade of best practice experience to help organizations develop a supplier enablement strategy that accelerates their transition to electronic invoice processing and maximize their return on investment. Ariba specialists work with suppliers of all sizes and technical limitations, including global suppliers with varying language, currency, culture, and technology needs. With Ariba, select organizations can leverage a quick enablement approach that initiates supplier enablement through transactions like purchase orders, invoices, or payment status documents (remittance advice) on the Ariba Network. The quick enablement process can accelerate the enablement process by reaching out to suppliers especially low-volume suppliers at the best time and with the right message for electronic enablement. Self-service tools in the Ariba Network allow even the smallest suppliers to collaborate online for invoice management via , fax, PO-Flip, or digital integration via cxml and Electronic Data Interchange (EDI) Through a buyer portal, organizations have complete dashboard visibility to the enablement status of each supplier, so they can identify any tasks or activities that require escalation to meet their enablement goals. Once on the Ariba Network, suppliers benefit from Ariba s smart invoicing system, where they are alerted to invoice errors upon submission and can correct them quickly to speed their time to payment. The success of Ariba s efforts is demonstrated by the steady growth of the Ariba Network to more than 800,000

23 vendors. Electronic Invoicing Ariba smart invoicing enables the system to catch invoice errors based on userconfigurable business rules that perform real-time invoice validation at the header and line detail levels, and perform other valuable capabilities such as automated account coding and contract matching. These advanced invoice validation capabilities are responsible for Ariba clients experiencing 98+ percent touchless invoice processing, and for suppliers having, on average, 6 days shorter Days Sales Outstanding (DSO). In addition to e-invoice submission from suppliers, Ariba s Invoice Conversion Services allow organizations to convert paper invoices to an electronic format for smart invoice processing and thereby achieve 100 percent paperless invoice processing. To expedite global e-invoicing rollouts, Ariba allows users to configure business rules at the country level and apply them to country-specific e-invoice templates. These rules provide valuable support for VAT and other indirect tax methods and for legal regulations governing the invoice process. Business rules are based upon Ariba best practices and expert tax research into e-invoicing legislation by country relating to domestic, cross-border, and intra-eu trade. In addition, Ariba publishes Tax Compliance Country Guides for more than 36 countries in North America, EMEA and Asia-Pacific to further assist buyers and suppliers in deploying a compliant e-invoicing solution. Ariba also offers an e-archive Service, powered by Logica that helps organizations address the e-archiving requirements of the European Union. Approval Workflow Ariba Invoice Professional is a workflow solution designed for accounts payable that features best-practice templates, so organizations can apply out-of-the-box workflows to manage invoice approvals, facilitate matching of invoices to POs and goods receipt, and enable invoicing off contracts. Ariba workflow supports remote and line-level invoice approvals and complex workflow configurations such as invoices with multiple accounts and different line items requiring approvals from different groups. Rule configuration and testing is integrated into the application, eliminating any need to contact IT for set up and support. And with Ariba s comprehensive workflow reporting, organizations can effectively monitor their invoice approval process across many dimensions. Working Capital Management Ariba working capital management solutions allow organizations to accelerate payments on approved invoices to key suppliers in return for a discount. Buyers earn an immediate return on their cash, and their trading partners can use that cash to fund their daily business needs and ensure that they can meet a customer s ongoing demands.

24 With Ariba s approach, buyers and sellers have all of the tools necessary to fully automate the process of offering, negotiating, and agreeing on early payment terms. Buyers can capture discounts at any point between invoice approval and the net due date and automatically present offers to lock them in. Suppliers can automatically accept offers or control the acceleration of payment on an ad-hoc basis according to their needs. To accelerate results, Ariba offers a rapid ramp methodology for promoting early payment discount offers to suppliers, effectively driving them from paper invoices and paper checks to e-invoicing and electronic payments. With this program, one customer identified close to $1 million in early payment discount savings in weeks. Ariba s collaborative finance approach helps suppliers get early payment at much lower rates than traditional market resources without incurring debt and provides greater leverage for buyers to extend payment terms or negotiate reduced prices. Electronic Payments The Ariba e-invoicing solution supports global payments in over 70 currencies via automated clearinghouse (ACH), or purchasing cards. Standard middleware integration allows Ariba s solution to integrate with leading back office systems to facilitate posting of transactions to accounts payable (AP), accounts receivable (AR), and general ledger (GL) systems. Another strength of the Ariba solution is its ability to deliver remittance information to suppliers in their preferred formats. While traditional ACH remittance detail is at an aggregate level, Ariba offers line-level detail remittance statements, which make it easier for suppliers to match payments to sales. Reporting and Analytics Ariba offers a robust reporting functionality that includes operational, analytical, and extensive search capabilities. Ad hoc reporting allows users to prioritize invoice processing to maximize discount savings potential. Users can manipulate the data to meet their specific needs through an intuitive pivot table and drag-and-drop interface. Ariba also allows data export to third-party reporting tools such as Crystal Reports for further analysis. Pricing and Implementation Ariba s modular design allows customers to implement solutions by function, or as a complete suite to match customer objectives. Implementation timelines vary depending upon the other Ariba solutions that may be a part of the scope, but are generally weeks. Pricing includes annual and subscription fees, and include user support and training as key deliverables of every Ariba solution, as well as round-theclock support from response centers in North America, Europe and Asia Pacific regions. The customer report portal, Ariba Connect, has been recognized as one of the Ten Best Web Support Sites by the Association of Support Professionals.

25 GXS GXS is a leading B2B integration services provider and operates the world s largest integration cloud, the GXS Trading Grid. GXS software and services help more than 400,000 businesses worldwide, including two-thirds of the Fortune 500 and 22 of the top 25 supply chains, extend their partner networks, automate receiving processes, manage electronic payments, and improve supply chain visibility. GXS Managed Services combines the GXS Trading Grid with process orchestration services and global resources to manage a company s multienterprise processes. Based in Gaithersburg, Maryland, GXS has direct operations in 20 countries, employing more than 2,400 professionals. Website Founded 2000 (GEIS, 1967) Headquarters Gaithersburg, MD Other Locations GXS has 40 locations globally Number of Employees 2,400+ Number of Customers 40,000+ Number of End Users Combined trading community of over 400,000 businesses with millions of end users Key Clients Two-thirds of the Fortune 500,Dell, Unilever, Nestle, Michelin, Tesco, Comcast Target Verticals Any B2B: Retail, Manufacturing, CPG, Automotive and Financial Services are strong verticals for GXS Partners/Resellers Direct sales force, supplemented by strategic channel partners around the world Transactions Processed Over 12 billion Annually Awards / Recognitions»» 22 of The Gartner Supply Chain top 25 for 2012 use GXS s B2B Integration Services»» 23 of The Gartner Supply Chain Top 25 for 2011 use GXS s B2B Integration Services»» GXS Awarded SWIFTReady Connectivity Best Practice Label 2011»» GXS Ranks in the Top 100 of InformationWeek 500 Top Technology Innovators across America

26 Solution Name Active Applications : e-invoicing solutions for Accounts Payable and Receivable. Current Version Year Introduced 2007 Frequency of Upgrades Quarterly Solution Overview GXS specializes in integration solutions, connecting to many ERP and legacy systems. The core solution is software as a service, hosted in the cloud, with some connectivity solutions offered via license where appropriate. The solution connects to hundreds of SAP instances; more than 50 Oracle ERP instances and numerous other Infor, Microsoft Dynamics, Quickbooks, Peachtree and Sage applications. Supplier Recruitment GXS Expert On-Boarding implementation specialists work with buyers to understand business requirements, define goals and objectives, agree on timelines and develop project plans. A dedicated program manager will develop and conduct a customized supplier survey to gain insight into their technical capabilities. Program goals and objectives are communicated to suppliers through customized educational materials, free webinars and a personalized website. Dedicated implementation specialists reach out to suppliers and report back to buyers with weekly performance scorecards. When available, suppliers may use the Net Community Manager to test their documents for system compatibility. Additionally, GXS provides ongoing, 24x7 local language support to trading partners. Electronic Invoicing GXS provides einvoicing solutions for hundreds of thousands of large corporations, small and medium-sized enterprises, and banking customers around the globe. Large enterprises may exchange electronic invoices via EDI directly from ERP/general accounting systems, converting data into preferred formats for Straight-Through Processing. Banks often re-label GXS einvoicing applications as part of their traditional factoring, supply chain finance or procure-to-pay offerings. GXS offers small and medium-sized enterprises a range of cost-effective connectivity solutions including: web, Excel, software and service solutions, a range of payment models. Using GXS, companies can now electronically exchange invoices with regulatory compliance in 41 countries. The global einvoice solution provided by GXS delivers country specific tax compliance and active invoices follow specific rule sets that allow for seamless flow from the supplier s AP system to the customers AR system. Global einvoicing services include document translation, digital signatures, content validation, long term archival and

27 PDF or human readable invoice formatting. Current languages include English, Spanish, Portuguese, French, Italian, German, Chinese, Japanese and Korean. Approval Workflow GXS provides solutions and services across the entire order-to-pay and order-to-cash spectrums. Buyers are able to match multiple documents and manage exceptions through rules-based approval workflow that flags exceptions and routes them for resolution. Buyers and suppliers are both notified of exceptions and are able to collaborate online and share documents to reach resolution. Working Capital GXS works with partners to provide supply chain finance solutions. This varies from classic factoring to reverse factoring and dynamic discounting. Suppliers can use the system to review approved buyer payables and accelerate cash flow by offering early payment discounts. GXS offers cloud-based services that simplify how corporations connect to their banks and other counterparties. GXS typically reduces not only the cost and complexity of client delivery, but also helps accelerate speed-to-market and timeto-revenue. Electronic Payments GXS processes approximately 1 billion payment transactions per year. Customers can send instructions for ACH, wire transfer, check and international funds transfers directly to banks or via SWIFT. Reporting and Analytics Automated reports provide visibility to partner performance and key metrics. Reports can be customized, shared, subscribed to, exported and drilled into, making it easy to collaborate with partners on issues. Configurable search functionality allows users to generate reports and save queries for future use. Report data can be downloaded into comma-separated format for use in other reporting solutions. Pricing and Implementation Implementation typically takes 4-6 weeks, depending on the complexity of the installation, the number of trading partners, customer commitment and technical maturity of the customer. Pricing is flexible, with each implementation typically incurring a service fee, which may be amortized over the term of the contract. Some customers prefer that suppliers pay transaction fees, others pay the fees on behalf of suppliers to encourage adoption. Still others prefer a blended option that allows them to underwrite predicted supplier adoption.

28 Taulia Taulia Inc. provides the only SAP -certified Software-as-a-Service (SaaS) platform for dynamic discounting, supply chain finance and electronic invoicing. With Taulia, large organizations can reduce their total spend by automating and maximizing supplier discounts, while suppliers get paid earlier at a lower cost of capital than alternative options. Taulia connects businesses to stop leakage and friction within the financial supply chain to boost worldwide economic growth. In addition to SAP expertise and SAP certification, Taulia s core value proposition includes multi-million dollar savings by making dynamic discounting available on 100 percent of invoice spend (regardless of how an invoice is submitted), with a solution that is completely free to suppliers. Taulia s solution supports multiple languages and enables global einvoicing in more than 40 countries including all European countries, North America, Mexico, Chile and various countries in Asia Pacific. Website Founded June 2009 Headquarters Other Locations Number of Employees > 50 Customers Number of End Users Annual Transaction Volume Industry Segments Key Accounts San Francisco, CA Park City, UT; Dusseldorf, Germany; London, England Fortune 500 and Global 2000 customers in North America and Europe Over 80,000 suppliers have access to the Taulia Network $150 Billion Awards/Recognitions»» SAP Gold Partner Partners/Resellers All Coca-Cola Bottling, Pfizer, Pacific Gas & Electric, John Deere, Hallmark, PepCo, Bell Canada, Tim Hortons, Johnson Controls, Sealed Air, Dominion»» Bully Award»» SSAE16 certified»» TRUSTe certified»» SAP add-on certified SAP, ReadSoft, OB10, Coupa, Dolphin, Verbella Solution Overview Taulia allows users to generate savings with every invoice paid, turning the supply chain into a profit center by enabling procurement/ap to automate and scale

29 payment discounts to 100 percent of their supplier base. Taulia provides suppliers with comprehensive self-services and free compliant einvoicing through its SaaS platform, eliminating non-productive tasks that allow AP to focus on core issues. The solution, which launched in mid 2010, consists of a SaaS platform and a certified SAP Add-On. The certified SAP Add-On is easily and quickly installed into the buyer s SAP system and provides secure, real time connectivity to Taulia s SaaS platform, directly out-of-the-box. This duality provides rapid time to value with minimal resource requirements from the buyer s IT department and allows the buyer to fully leverage existing business processes and existing data in their SAP system. Supplier Recruitment Taulia s commitment to free supplier access, combined with the solution s ease of use data analytics and powerful cash management tools, has made the solution very attractive to suppliers. Its strong value proposition for suppliers combined with Taulia s comprehensive supplier enablement program, Taulia Now, that consists of e-marketing, educational campaigns, online support programs and weekly webinars result in high supplier adoption rates. Taulia s supplier adoption rates exceed market averages due to the company s simple and free signup process. Currently over 80,000 suppliers have access to the Taulia network, with more added daily. Electronic Invoicing Once suppliers enroll for free into the Taulia Network, they have access to free electronic invoicing that is compliant in over 40 countries. Suppliers can submit invoices electronically by manually submitting an invoice via the supplier portal, flipping purchase orders into invoices, free form invoice creation without a purchase order, EDI, Edifact, or uploading invoices in various formations, including XML, CSV and XLS. In addition, the market-leading Inbox by Taulia allows suppliers to submit invoices as attachments. Taulia s partnerships and interoperability agreements with major einvoicing providers allow suppliers already connected to other networks to submit einvoices to any buying organization connected to the Taulia SaaS platform at no additional charge. A variety of validation checks are performed on invoices submitted into Taulia s system, including a duplicate check against all supplier invoices, not only the ones submitted through Taulia. Other validation checks include configurable price and quality tolerance, freight and special charges, tax (VAT, GST/PST/QST and U.S. sales tax) and tax exempt, tax ID, and mandatory field checks. Taulia allows customers to apply any additional checks on invoice data as well as any custom fields customers want to collect from suppliers. Approval Workflow As part of Taulia s core belief to remain open to any preexisting workflow solution, Taulia s out of the box, standard delivery integrates seamlessly into all leading

30 workflow solutions. The solution s functionality provides a powerful real-time dispute and messaging module to initiate conversations and reply to requests from buyers and suppliers. To aid in global einvoicing, Taulia supports mass messaging in which global messages can be sent to all suppliers or simply to a subset. For accountability purposes, all conversation threads are tightly linked to a particular business object, such as a specific invoice. Working Capital Taulia provides a sophisticated Dynamic Discounting solution that addresses the entire spend of a buying organization and works to dramatically increase the discount opportunity. A differentiating point worth noting is that Taulia s Dynamic Discounting solution isn t one size fits all, Taulia provides three types of Dynamic Discounts that buying organizations can utilize to maximize savings. Taulia provides Early Payments that are opt-in offers to suppliers to be paid early in return for a discount. The buyer decides both the supplier and the rates for early payment discounts. Early Payments are only offered on net term invoices e.g., invoices that are not eligible for discount options. Taulia s Enhanced Discount Terms are similar to Early Payments on net invoices, but are extensions/enhancements of traditional discount terms; however, Early Payments do not change the PO or vendor standard payment terms. Unlike Early Payments, Enhanced Discount Terms are offered on invoices that already offer a classical, traditional discount. The buyer decides what traditional discount payment terms should be enhanced, and once the invoice is approved, and if the discount cliff is not yet reached, the invoice is offered for earlier payment for an additional discount. Taulia s Dynamic Payment Terms are real ERP payment terms on a discounted sliding scale. Dynamic Payment Terms allow buyer organizations to move suppliers from traditional payment terms, such as 2/10, Net 30, to a sliding scale or ASAP payment terms, which happens at the contract/po stage. Terms can be set up and maintained directly in a customers ERP system and treated as standard payment terms. Taulia s variety of discounting solutions allow buying organizations to choose what type of Dynamic Discounting best suits their needs. Taulia s solution offers comprehensive supplier selection and segmentation criteria as well as advance discount terms and discount rates management. Electronic Payments As an SAP add-on, Taulia leverages SAP s built in, powerful means of communicating payments and payment requests to financial institutions. Out of the box ACH and EFT payments are part of SAP, so instead of reinventing the wheel and forcing SAP customers to adopt a second, additional payment solution, Taulia leverages the payment process that every SAP customer already successfully established. For non- SAP buying organizations, Taulia provides the option to pay via ACH/EFT.

31 Reporting and Analytics Taulia s solution provides robust reporting functionality for enhanced visibility to locate dynamic discount opportunities and access key metrics. The extensive list of reports and dashboards are tailored for AP, Treasury and Procurement and are accessible directly within SAP. Both standard and ad-hoc reports are available and can be easily downloaded into third party reporting tools such as SAP Business Objects or Crystal Reports for further analysis. Pricing and Implementation Taulia offers buyers an all-inclusive annual subscription plan, with no transaction fees and no supplier charges. Suppliers have completely free einvoicing, which contributes to Taulia s higher than average supplier adoption. Taulia also provides a revenue share model based on discounts captured from dynamic discounting. Average implementation time is three months or less, from kick-off to enrollment of the first wave of suppliers, but actual time may vary depending on the feature set selected, integration, complexity, scope of einvoicing, and level of supplier self-service. Taulia provides a professional service team that offers extensive on-call training, in addition to technical and functional support provided via online 24/365 chat, phone and . Interactive self-help tutorials and weekly supplier webinars are provided to train new users and maximize the success of the program.

32 Tradeshift Tradeshift the platform for all your business interactions is one of the fastest growing, global B2B networks and is used by over 150,000 companies across 190 countries. It helps companies run more efficiently by harnessing the power of their network to create new value from old processes like invoicing, payments and more. Tradeshift connects all suppliers and business partners electronically, delivering better, smarter and safer business transactions. Tradeshift s free online invoicing to suppliers coupled with their supplier onboarding program, has awarded the company higher than average adoption rates. Tradeshift manages large-scale global rollouts encompassing hundreds of thousands of suppliers utilizing the company s highly automated Network Engagement Tool. Website Founded 2009 Headquarters Other Locations Number of Employees 100 tradeshift.com Customers 150,000 Key Clients Target Vertical San Francisco, CA Copenhagen, London, Frankfurt, Amsterdam NHS, French Government, Kuehne+Nagel, MITIE, Vestas, DSM Any Awards/Recognitions»» Best Enterprise-TechCrunch Europa»» Most Innovative Solution by Financial-I Current Version Solution Name Year Introduced 2010 Frequency of Upgrades Connect every business on the planet on one, open, shared platform Tradeshift Daily Solution Overview Tradeshift is a cloud-based hosted service that connects in multiple ways with ERP and legacy systems. As a 100 percent cloud-based platform, Tradeshift allows for the development of third party applications, making Tradeshift extensible to run any process. The company invented Tradeshift CloudScan, the world s first network integrated OCR solution that allows suppliers to handle scanning exceptions that permits customers to switch to 100 percent electronic invoicing from day one.

33 The company s global footprint encompasses 190 countries and the solution supports multiple languages, including French, Spanish, German, Dutch, Danish, Hungarian, Polish, Finnish, Swedish and Italian. In addition, Tradeshift s solution provides robust mobile functionality. Tradeshift has an extensive product road map for 2013 roll-outs in which the company will release major product features each month, in addition to minor daily upgrades. Supplier Recruitment Tradeshift boasts the highest supplier onboarding rates in the industry. Their higher than average adoption rates are due to the fact that they do not charge supplier fees. Tradeshift s Network Engagement tool automates supplier outreach with customizable campaigns designed to optimize supplier onboarding by reaching a client s entire supply chain. Electronic Invoicing Tradeshift provides electronic invoicing solutions to companies around the globe. Any document or image type can be submitted and is fully supported through CloudScan, which completely eliminates the need for manual input of invoices received via , PDF or paper. The Tradeshift platform supports 50 different electronic invoicing formats for the exchange of einvoices, including cxml, EDI, x12, UBL, Nota Fiscal, CBDI (Mexico) and CSV files. Electronic invoices can also be submitted through Tradeshift s integrated cloud connectors to online accounting systems, such as E-conomic (more than 50,000 suppliers in Scandinavia), Twinfield (more than 80,000 suppliers in Northern Europe) and QuickBooks (more than 5 million suppliers globally). Suppliers can submit invoices through direct integrations, utilizing Tradeshift s free integration apps, directly from Tradeshift s web applications, or via Tradeshift s mobile platform. Tradeshift s Business Firewall permits companies to set rules and standards for invoice acceptance. In addition, real-time comment capabilities speed up invoice correction and dispute resolution. Suppliers are notified instantly through the user interface if an invoice has been recognized with an error. This allows for easy corrections to be made, so the invoice can be resubmitted for approval. Approval Workflow The Tradeshift solution does not currently have any workflow capabilities. Working Capital Management Tradeshift s working capital management solutions allow companies to accelerate payments in return for a discount. Discounts are quickly and easily configured using Tradeshift s Supplier Engagement tool that enables supplier groups to be defined with rules added to each group. Suppliers are able to determine what invoices to discount through Tradeshift s web interface.