requires no change of business process for
buyer or supplier. Buyers simply export a file of eligible
payables from their Enterprise Resource Planning
(ERP) software or accounting system to
Eligible payables correspond to your suppliers’
invoices, which you have approved for payment.
Your suppliers that have any eligible invoices receive
an Auction Notice from
on Tuesday. The
Auction Notice will contain a list of your approved
payments that are eligible for immediate discounted
payment. Your supplier has 24 hours to simply click
on the invoices it would like to collect that Friday.
Suppliers submitting acceptable discount bids will
be notified at the end of the auction on Wednesday.
You will receive a file from
necessary adjustment, and you will pay those
suppliers’ invoices that Friday, minus the agreed
discount. Suppliers that do not bid, or whose
discount bids are not acceptable, are paid when their
invoices are due. The process is repeated weekly.
UNPREDICTABLE DISCOUNTS =
GREATER GROSS MARGIN
Making discounts unpredictable, combined with
discount opportunity window
, are the
two most novel and critically important features
’s design. Suppliers that are unable to
predict the discounts you will accept are effectively
prevented from building discounting into their