(Chapter 8) Adventures of Ivan the CPO: 10 Technology Tools Every Procurement Team Needs In 2018
- Chapter 1: Ivan joined his new job as a CPO, with a host of challenges which needs to be overcome.
- Chapter 2: Friends in Need, Indeed!
- Chapter 3: “Not All Those Who Wander Are Lost”
- Chapter 4: “ Lock, Stock, and Smoking Barrel.”
- Chapter 5: “Collaboration is a Two Way Street.”
- Chapter 6: The Invoice-Paper-OCR Game
- Chapter 7: Shape of Invoices in a Flat World
Supplier’s Customer of Choice
In the last few months, 4 of the largest economies have gone through unprecedented changes, and the strains are starting to show in Ivan’s supply chain. Ivan had previously anticipated the changes and did not need to worry about supply chain risks. However, due to the stagnation in global markets, a new problem was on the rise, namely supplier’s financial viability.
It was evident that many of the preferred suppliers in Ivan’s supply chain were in dire need for finances. With the reduction in regular business, these suppliers had lesser resources to work with and were often not in the stable condition that Ivan’s KPIs mandated. To make matter worse, some of the small vendors with a specific niche expertise were also working with Ivan’s competitors, and soon they might have to prioritize whose order they would want to fulfill first.
Ivan knew he needed to be the supplier customer of choice. One of the ways he devised was to start a discount program for providing cash incentives to help his supply chain.
Using pre-Canned programs offered by Zycus’ Dynamic Discounting module, Ivan started to initiate automatic dynamic discount offers on approved invoices. The idea was to optimize the cash in hand to receivables ratio, which would give faster access to required cash for his suppliers, who would be in turn providing discounts. Zycus’ system also provided an intuitive dashboard for AP/Treasury/Suppliers to manage & track discount offers, making the entire process easy and transparent.
Additionally, Ivan’s team received smart suggestions on discount programs to maximize savings opportunities, which ensured no opportunities were missed.
Using Zycus solution, Ivan was not only able to make use of cash in hand, but more importantly, the supplier relationship improved vastly, as supplier started looking at Ivan’s team as a strategic partner and not just a customer.
Know how Ivan improved Inventory Management in Chapter 9! To be Continued…
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