GREENSBORO, N.C.--(BUSINESS WIRE)--Companies are looking into how cash-management solutions such as dynamic discounting drive more profits to their bottom line. To assist accounts payable, treasury and procurement in managing a broader working capital optimization effort, APEX Analytix, an industry leader in auditing, recovering and optimizing profit and working capital in businesses’ global financial supply chains, has announced a four-part strategy powered by the FirstStrike® suite of products.
The APEX Analytix cash-management solution includes a robust combination of analytics and supplier onboarding technology for payment-term optimization; reporting to enable active discount capture; predictive scoring, discount marketing and adoption assistance for dynamic discounting, and flexible supply chain financing via a secure open adapter.
"Accounts payable and procurement are partnering with treasury to look at cash management more holistically," says Danny Thompson, software product management for APEX Analytix. "For years, our FirstStrike Reporting and Analytics clients have had visibility into current terms and discounts. In combination with these valuable insights, the Supplier Registration and Dynamic Discounting modules of the supplier portal and the flexible supply chain financing options clients now have a way to fully optimize cash management in procure-to-pay."
Payment-Term Optimization. The FirstStrike® Reporting and Analytics module provides enterprise-wide insight into payment terms. Many companies have variable payment terms, even with the same suppliers, because of multiple payment systems, vendor masters, or operating entities. With full visibility into payment terms across multiple systems, companies can consolidate and optimize terms as a first step in cash management.
Active Management of Discounts. “Beyond helping companies identify missed discounts outright, FirstStrike analytical reporting groups vendors and performs spend analysis to isolate cases where suppliers offer discounts inconsistently to a buyer across the enterprise or across similar products or services,” says Thompson. “The software also is able to identify missed discounts that occur when invoices are not approved within the negotiated terms. Even beyond that, our reporting can pinpoint why invoices aren’t being paid on time, so you can change either your process or your terms to reap the full benefits of discount management.”
Establishing Terms on the Front End. The Supplier Registration module of the First Strike® Supplier Portal drives suppliers to standard payment terms by providing one or more preferred terms during onboarding (e.g., Net 60 and 2%15/Net 60).
Open Supply-Chain Financing via Secure Open Adapter. Also known as approved payables finance or reverse factoring, supply-chain financing offers early payment to vendors in exchange for discounts, but uses cash reserves from outside sources, such as a bank, rather than a company’s own cash supply. Just as with dynamic discounting, suppliers benefit from additional operating cash flow, but the early payment does not compromise the company’s working capital. The APEX Analytix open supply chain financing software facilitates a firm’s ability to use third-party-funded (versus company-funded) - early payments. APEX Analytix offers a referral provider or, unlike other companies, allows firms to use their preferred funding source. Seamless integration to the third-party source of funds is enabled through the configurable Secure Open Adapter.
Dynamic Discounting Supports Buyer and Supplier Cash Management Objectives. The FirstStrike Portal Dynamic Discounting module engages buyers and suppliers to benefit both parties and reduce friction in the global financial supply chain. A unique feature - cash discount likelihood scoring - applies a predictive model to multiple analytical and behavioral criteria to pinpoint suppliers most likely to accept a discount for early payment. Segmentation and discount marketing provide the vehicle to present the discounts to target groups. In addition, an adoption program engages the APEX Analytix recovery analyst team, which has over a million conversations with suppliers annually, to market discounts to suppliers and encourage them to participate in the Dynamic Discounting programs of their buyers.
The Dynamic Discounting module also gives suppliers the opportunity to initiate discounts. The APEX Analytix model allows buyers to pre-set whether they will automatically accept, review, or automatically reject any supplier-initiated discount offer based on the APR range. Offers can be reviewed daily, weekly, or ad hoc so companies can choose the most favorable offers at the frequency they choose. The system may also be configured to accept discount offers up to a total amount in any given day. The result is maximum discount capture at rates that meet the needs of suppliers who otherwise fall through the cracks.
“It’s the combination of strategies that makes us unique in working capital optimization in procure-to-pay,” says Thompson.
About APEX Analytix, LLC
Serving Global 1000 companies, APEX Analytix is the number one provider of services and technology solutions to audit, recover and prevent overpayments and optimize profits, while enabling a frictionless global financial supply chain. For more information about the organization’s products and services, visit www.apexanalytix.com.
Find APEX Analytix on Twitter @APEX_Analytix, and read the latest company updates on the company’s LinkedIn page.
