Flexible payment model enables more companies to digitize and automate supplier transactions
Recent global events have convinced companies with complex, global supply chains and multiple tiers of suppliers that they need a better way to engage with trading partners. Eliminating manual processes is a critical step on the path to more efficient supplier onboarding and collaboration. But after decades of trying, over 66% of companies still use email, phone, fax and postal mail for B2B transactions with at least 30% of their trading partners.1
To overcome the technical challenges of digitizing and automating B2B transactions with suppliers – including suppliers that lack the technology and expertise to support EDI transactions – companies have implemented solutions like IBM Sterling Supplier Transaction Manager. Users can create or exchange business documents easily through a web portal, and the solution converts the documents into a format each party can view and use without manual intervention.
While companies and their suppliers can see great benefits in an electronic alternative to paper-based communications, some need a way to share the investment of eliminating costly, manual processes. To help, IBM is launching a spoke-pay payment model as an alternative payment option.
Traditionally, the investment to eliminate manual, error-prone processes has been absorbed entirely by the sponsor of the trading partner network. While this model works for some companies, it may not for others. Suppliers also gain business value from digitization and automation as they benefit from better data quality, faster time to revenue, and additional business opportunities as a result of being easier to work with –but are not sharing in the costs..
IBM’s new spoke-pay option enables companies to share costs with their suppliers. The sponsor invites the supplier to sign up and accept payment terms for their participation in the trading partner network. The supplier can register, pay and access the network through a web portal in a matter of minutes.
By reducing the technical and financial barriers to digitizing and automating B2B transactions, companies and their suppliers eliminate the pain of manual transactions and make leaps forward in supply chain efficiency.
1 IBM Supply Chain Survey, Vanson Bourne, Sept 2019