How Fortune 500 s Generate Millions with ReadSoft and Dynamic Discounting

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Beatrice Oliver
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1 How Fortune 500 s Generate Millions with ReadSoft and Dynamic Discounting

2 Agenda INTRODUCTION MARKET CHALLENGES CASE STUDIES KEY TAKEAWAYS Q & A

3 Who Are We? DAWNETTE BLAKE Treasury Manager Agilent Technologies JOE HYLAND Chief Marketing Officer Taulia MAEX AMENT Chief Product Officer Taulia

4 Who is Taulia? CONNECTIONS Taulia connects over 50 Fortune 500 & Global 2000 corporations with their supply chains through hundreds of thousands of active buyer-supplier connections TRANSPARENCY Suppliers can see approval statuses of their invoices and opt-in for immediate payment of any or all approved invoices for a discount FINANCING The early payment can be funded by the corporation itself or by a financial institution, leveraging the low cost of credit of the corporation BENEFITS: Multi-Millions Savings in Early Payment Discounts Improved Capture on Existing Discounts through Sliding Scale Mechanism Improved Supplier Relationships Terms Extension without Negative Impact on Supplier Finances Complete P2P Platform

5 What Does Taulia Offer? Integration Supplier Finance P2P Platform Network Full product suite integrated out of the box into ReadSoft and your ERP Taulia combines Dynamic Discounting, Supply Chain Finance and Enhanced Discounting to offer flexible financing and turn every invoice into a savings opportunity Taulia offers einvoicing, supplier self-services, vendor master capabilities and supplier financing to provide a comprehensive toolkit that meets the needs of the entire supply chain Taulia s P2P platform connects networked buyers and suppliers to maximize program success

Dynamic Discounting, Supply Chain Finance and Enhanced Discounting to offer flexible financing and turn every invoice into a savings opportunity

6 What Does Taulia Offer? NETWORK P2P PLATFORM SUPPLIER FINANCE EASY INTEGRATION Taulia s P2P platform connects networked buyers and suppliers to maximize program success Taulia offers einvoicing, supplier self-services, vendor master capabilities and supplier financing to provide a comprehensive toolkit that meets the needs of the entire supply chain Taulia combines Dynamic Discounting, Supply Chain Finance and Enhanced Discounting to offer flexible financing and turn every invoice into a savings opportunity Full product suite integrated out of the box into ReadSoft and your ERP

Taulia offers einvoicing, supplier self-services, vendor master capabilities and supplier financing to provide a comprehensive toolkit that meets

7 The Typical ReadSoft User Unique Environments ReadSoft clients use different modules, but here are the typical scenarios we see: Using OCR, but missing opportunity to completely automate invoicing process Enjoying fewer inquiries for unpaid invoices, but are still contacted and asked, when will you pay me? Benefitting from reduced approval cycles, but maintaining same payment cycles

invoicing process Enjoying fewer inquiries for unpaid invoices, but are still contacted and

Your Likely Current State 01 02 03 You have ReadSoft INVOICE COCKPIT You have automated workflow and/or OCR You have (internal) visibility and

8 Your Likely Current State You have ReadSoft INVOICE COCKPIT You have automated workflow and/or OCR You have (internal) visibility and an improved invoice cycle but do your suppliers have this same visibility? And are you missing an opportunity to add millions to your bottom line?

improved invoice cycle but do your suppliers have this same visibility?

9 Current Landscape Challenges There s a Fundamential Inefficiency in the Financial Supply Chain Buyers Have Excess Cash Low Return on Cash $2.0 U.S. Non-Financial Companies Cash & Liquid Assets 10% U.S. Interest Rate 10-Year Treasury Rate ($ in tn) 8% $1.5 6% $1.0 4% $0.5 2% $ %

S. Interest Rate 10-Year Treasury Rate ($ in tn) 8% $1.5 6% $1.0 4% $0.5 2% $0.

10 Average Time Suppliers Wait to Be Paid 11% 61 + DAYS 6% 0 DAYS 33% 1 to 30 DAYS 50% 31 to 60 DAYS *American Express Small Business Monitor. Polled 500 Canadian Business Owners. September 2012

11 Suppliers Have No Access to Financing Suppliers Face a Financing Gap and Predatory Costs of Capital Traditional Supplier Finance Only Serves the Largest Suppliers Banks Continue to Enforce Strict Lending Requirements Long-tail Suppliers Limited to Factoring, P- cards and Other Expensive Forms of Finance

Largest Suppliers Banks Continue to Enforce Strict Lending Requirements

12 Banks Benefit from the Inefficiency BUYER Approves Invoice on Day 5 Invoice-Net SUPPLIER Invoices Customer 2. BANK Buyer Earns 0.75% APR until Due Date 3. Suppliers Borrow at 20+% APR

13 Common Challenges in Payables Process No visibility into the invoice process Unnecessary invoice status and inquiry calls Missed early payment discount opportunities AP Depts. drowning in paper High cost of manually processing invoices

calls Missed early payment discount opportunities AP Depts.

14 Typical Buyer and Supplier Pain Points Buyer Pain Points Supplier Pain Points Why do supplier inquiry calls take up most of my time? Am I missing out on supplier discount opportunities? Did you receive my invoice? When will I get paid? Can I get paid earlier? Is there a better way to optimize working capital?

Am I missing out on supplier discount opportunities?

15 Solving The What If Game What if Suppliers could check the status of their invoices online 24/7? What if Suppliers could incentivize early payments? What if You can address your suppliers needs for early payment? What if You keep all the returns that would of normally gone to the bank? What if There is a way for you to pay your suppliers less and have them thank you?

What if You can address your suppliers needs for early payment?

16 Win-Win Situation that Generates Revenue Strengthen Supplier Relationships by Paying them Less Enables Buyers to improve return on cash by paying suppliers early with no additional investment risk Enables Suppliers to access less expensive financing alternatives by accepting time-variable Discounts

suppliers early with no additional investment risk Enables Suppliers to

17 Case Study: Coca-Cola Bottling Headquartered in Charlotte, NC 130M cases of sold per year $1.7 billion revenue Non-Coke products manufactured and distributed Largest U.S. independent Coca-Cola bottler Operates in 11 Southeastern states Approximately 6,800 employees Coke products make up 80% of total volume

7 billion revenue Non-Coke products manufactured and distributed Largest U.S.

18 Operational Efficiencies.004 support tickets per supplier Visibility of unrecorded liabilities Complete invoice transparency and audit trails Electronic approval process now enforces the board-approved Chart of Authority

19 Enrollment Metrics 87% of I N V I T E D S U P Penrolled L I E R S WITHIN 6 MONTHS Live in late October % of enrolled suppliers actively use the portal Internal personnel eager to adopt the new system

October 2011 90% of enrolled suppliers actively use

would become the Bubble Wrap we love today 25,000

20 Case Study: Sealed Air In 1960, Marc Chavannes and Al Fielding invented a revolutionary new wall paper, which would become the Bubble Wrap we love today 25,000 Employees Serves Customers in 175 Countries $7.6 Billion Revenue (2012)

21 Project Goals Free to Suppliers Dynamic Discounting Invoice Visibility PO Confirmation ASN DPT Campaigns Simple Enrollment Higher Enrollment EDI Invoicing einvoicing Compliance Real-Time SAP Communication Dispute Messaging Accelerated Workflow

Globalizing einvoicing and Discounting Decreased calls into AP because suppliers have visibility into payment and invoice status Of suppliers invited actively use the

22 Globalizing einvoicing and Discounting Decreased calls into AP because suppliers have visibility into payment and invoice status Of suppliers invited actively use the portal Achieved real time communication between SAP and P2P Platform 4 different currencies: CAD, USD, GBP, NZD 7.9% Invoices offered for early payment are accelerated

23 Globalizing einvoicing and Discounting eupload 1% API 1% eflip / eform 49% SAP 49% Invoices submitted through various different formats

24 Case Study: PG&E Incorporated in 1905 Headquartered in San Francisco, CA Provides natural gas and electric services to approximately 15 million customers Service area covers 70,000 sq. miles in Northern and Central California from Eureka in the north to Bakersfield in the south 2012 Revenues of $15 Billion

25 Top Performers Dynamic Discounting 61% 49% Of suppliers Request Multiple Early Payments Of the Early Payments Requested by these Suppliers were Automatically Accelerated (AutoAccept)

26 High Annual Rate of Return 23.6% 19.7% Average Finance Rate of Top Dynamic Discounting Users Average APR for All Suppliers

Very Real Savings Involved 50 40 30 20 10 Taulia Deployed in 2011 $32M $10M $3.9M $5.

27 Very Real Savings Involved Taulia Deployed in 2011 $32M $10M $3.9M $5.8M $46M $43M Taulia has saved us more money quicker than anticipated. - Ben Shaffer, PG&E Finance Dept $121M in Discounts

28 That s not it Additional joint clients include:

29 Keys to Success NO SUPPLIER FEES 100% free to suppliers. Period. No network fees or ongoing cost Proven to increase supplier adoption INTUITIVE INTERFACE Ask for demos of products Compare the UI and usability to ensure maximum supplier adoption and engagement DEMONSTRATED SAVINGS OPPORTUNITIES Ensure provider has successfully saved organizations operationally and strategically einvoicing + Discounting = Supply Chain Savings SCALABILITY Program cannot be successful if it cannot scale Ensure that processes can be automated to maximize results and strengthen supplier relationships ASK FOR REFERENCES You need to know it was done before! Be sure to get references on ERP, supplier adoption, globalization, discount savings ALL INVOICES VISIBLE Provide suppliers with all the information they need All invoices in your ERP displayed in portal History of invoices, purchases and payments

30 Our Vision of Tomorrow For You FREE PROFITS ADOPTION PARTNER Free einvoicing and Self-Services for your Suppliers Increased Profits From Early Payment Discounting Supplier Onboarding Guarantee Greatly Improved Suppliers Relationships

31 The World's Biggest Brands Manage More Than $200 Billion in Spend on the Taulia Platform

32 Taulia Demo

Building a Strong Foundation for Supplier Finance Unlocking Value From Your Supply Chain

Building a Strong Foundation for Supplier Finance Unlocking Value From Your Supply Chain Taulia Overview The leading SaaS provider of Supplier Self-Services, einvoicing and Supplier Financing software