Why simplicity matters for an eInvoicing, dynamic discounting, and portal solution

For big buyers with 100s of suppliers, it is always hard to bring all their suppliers under a common platform and common program. And this costs 100s of 1000s of dollars every month. More time is spent to manage supplier data, manage processes, and keep supplier relationships on the top.

Interestingly enough, in last decade, many buyers of all sizes have come up with their own supplier portals where in they ask their suppliers to submit all kind of information to submit. However the adoption rate has been very slow. We at DRGREP have been talking to many buyers and suppliers and some of the reasons, we find, are going against the spirit of wide supplier adoption rate are the followings:

1. It doesn’t integrate with your ERP. From an operational and financial standpoint, there’s nothing more inefficient than implementing a new solution that doesn’t fully integrate with your current systems. What’s the point of giving your suppliers visibility into their invoice if they can’t submit electronic inquiries and request to be paid early?
2. You can only receive invoices in certain formats. When you have thousands of suppliers, flexibility is key for adoption. If one of your suppliers prefers to upload a batch list of invoices instead of submitting them individually, your chances of that supplier accelerating invoices to be paid early and actively using the portal are much higher if your portal supports their current receivables process.
3. You can’t elect to pay early in exchange for a discount. As we mentioned, the first step in maximizing ROI is getting your suppliers to use the portal. But where you can receive true financial benefits is through your portal’s ability to capture early payment discounts. Beyond your suppliers’ awareness of this feature, it must be easy for them to take advantage of being paid early in the portal.