This document discusses moving accounts payable processes from traditional paper invoicing to fully electronic invoicing. It outlines the current challenges with paper-based processes that are inefficient for both buyers and suppliers. The presentation then discusses how emerging technologies have created an opportunity to implement electronic invoicing solutions to address these challenges. Specifically, it proposes a solution that provides value to both buyers and suppliers by enabling early payment discounts, increasing payment visibility, and reducing costs. Case studies demonstrate how the solution has successfully increased savings and supplier enrollment rates for companies that have adopted electronic invoicing.

1. Real-Time Communication Between Your
ERP System and Your Supplier Portal
Chris Cauley,
Senior Director Solutions Consulting, Taulia

2. I. Current State of the Invoicing & Payables Process
II. Moving from Traditional Invoicing to Full Electronic Invoicing
III. Getting Suppliers On Board: 5 Supplier Value Propositions
IV. Supplier Discounts & Turning Issue Into Opportunity
V. Real World Success Stories
VI. Solution Demonstration
VII. Questions
Agenda

3. No visibility
into the
invoice
process
Unnecessary
invoice status
and inquiry
calls
Missed early
payment discount
opportunities
AP Depts.
drowning in
paper
High cost of
manually
processing
invoices
Challenges in Your Payables Process

4.  Why do supplier inquiry calls take up most
of my time?
 Am I missing out on supplier discount
opportunities?
 Is there a better way to optimize working
capital?
Buyer Pain Points
 Did you receive my invoice?
 When will I get paid?
 Can I get paid earlier?
Supplier Pain Points
Buyer and Supplier Pain Points

5. The Perfect Storm – Time for a Change
01
02
03
04
T E C H N O L O G Y
S U P P L I E R S
I N T E R N E T
C L O U D / S a a S
Efficient ERP backend systems
Invoice Workflow and Automation
Real-time analytics
Internet savvy
Demand visibility and predictability
Often cash poor with unfavorable financing landscape
Open connectivity
Abundant information
Business without limitations
Secure and scalable
Driver for more savings
New collaboration paradigm

6. I. Current State of the Invoicing & Payables Process
II. Moving from Traditional Invoicing to Full Electronic Invoicing
III. Getting Suppliers On Board: 5 Supplier Value Propositions
IV. Supplier Discounts & Turning Issue Into Opportunity
V. Real World Success Stories
VI. Solution Demonstration
VII. Questions
Agenda

7. The Foundation for a
Successful Supplier
Financing Program
Moving from Traditional to Full Electronic Invoicing
What eInvoicing is Not:
o Scanned/imaged paper invoices
o OCR’ed paper invoices
o Emailed PDFs
Sending and Receiving
Invoices Electronically
Completely Eliminating
Paper
Data Stays Data:
No Data Entry or
Correction
eInvoicing
What is eInvoicing in 2014 and beyond?

8. Key Take Away
Suppliers are a
Stakeholder, not a
Sales Target

9. I. Current State of the Invoicing & Payables Process
II. Moving from Traditional Invoicing to Full Electronic Invoicing
III. Getting Suppliers On Board: 5 Supplier Value Propositions
IV. Supplier Discounts & Turning Issue Into Opportunity
V. Real World Success Stories
VI. Solution Demonstration
VII. Questions
Agenda

10. Supplier Value Propositions
1. Complete Solution Offering
2. Covers all Submission Types
3. Interoperability with other platforms
4. No Supplier Fees
5. Financial Opportunity

11. Supplier Value Proposition 1: Complete Solution Offering
o eInvoicing, incl. flipping a PO
o Invoice status
o Remittance/payment details
o PO updates, confirmation & history
o Address changes, bank changes
o Online Dispute resolution
o Online W9/1099
o Focus on eInvoicing
– Connectivity often a one-way
street: “Incoming” only
– No additional business data on
the portal or network
Current New

12. Supplier Value Proposition 2: Covers All Submission Types
Visibility
provided for
ALL invoices and
payments
regardless of the
business
process.
Paper, Fax
PDF
EDI, XML
ERS
eInvoice
Portal

13. Supplier Value Proposition 3: Interoperability
Current
Network
or
PlatformNetwork
or
Platform
Supplier accesses each
platform used by its customers
New
API
Network
or
Platform
Network
or
Platform
Single Access Point for Suppliers

14. Supplier Value Proposition 4: No Fees
• Simply put – suppliers will not use a platform that charges a fee
• More and more providers offer electronic invoicing free of
charge to suppliers
• Must offer genuine supplier business value from Day 1.

15. Supplier Value Proposition 4: No Fees
Large Volume Suppliers
Midsized Volume Suppliers
Low Volume Suppliers
Integrated eInvoicing (eFile, eLink)
• Traditional EDI, such as 810 or EDIFACT
• Various file formats (CSV, TXT, XML) and
submission methods (FTP, AS2)
• Taulia’s API
Seamless and Convenient
(eUpload, eSend)
• Upload of various formats into
portal (CSV, XML)
• Emailing of invoices as
attachments (PDF, image files)
with subsequent supplier self-
correction in error cases
Simple Submissions (eFlip,
eForm)
• Flipping a PO (SAP MIRO in
the cloud, supplier facing
• Invoice web form
submission (when no PO
available)
Removing the Barriers to eInvoicing Participation

16. Supplier Value Proposition 5: Financial Opportunity
Top Three Supplier Pain Points
1. Did you receive my invoice?
2. When will you pay me?
3. Can you pay me earlier?

17. Supplier Value Proposition 5: Financial Opportunity
FACTORING MARKET IS
GROWING AT 28.6%
ANNUALLY AND EXCEEDS
$2.3 TRILLION
CREDIT CARDS CARRY
15% APR – INDUSTRY
AVERAGE
BANKS ARE RELUNCTANT
TO LEND TO SMB’S AND
IF SO, IT’S OFTEN AT
STEEP RATES
SMB LOANS ARE
EFFECTIVE FOR LARGE
CAPITAL EXPENDITURES -
NOT APPROPRIATE FOR
DAY-TO-DAY EXPENSES
TRILLONS
FACTORING
1.54
1.771.811.75
2.25
2.75
2.91
1
1.5
2
2.5
3

18. Complete
Solution
Offering
1 2 3 4 5
Covers 100% of
Submission Types
Interoperability No Supplier Fees Financial Value
The Series of Events: A Simple Chain
Supplier Adoption

19. I. Current State of the Invoicing & Payables Process
II. Moving from Traditional Invoicing to Full Electronic Invoicing
III. Getting Suppliers On Board: 5 Supplier Value Propositions
IV. Supplier Discounts & Turning Issue Into Opportunity
V. Real World Success Stories
VI. Solution Demonstration
VII. Questions
Agenda

20. Fundamental Inefficiency
Buyers Have Excess Cash
U.S. Non-Financial Companies’ Cash & Liquid Assets
Low Return on Cash
U.S. Interest Rate – 10-Year Treasury Rate
($ in tn)
0%
2%
4%
6%
8%
10%
1990 1995 2000 2005 2010
$0.0
$0.5
$1.0
$1.5
$2.0
1990 1995 2000 2005 2010

21. Average Time Suppliers Are Waiting for Payments
33%
1 to 30 DAYS
6%
0 DAYS
50%
31 to 60 DAYS
11%
61 + DAYS
*American Express Small Business Monitor. Polled 500 Canadian Business Owners. September 2012

22. SUPPLIER
Invoices
Customer
BUYER
Approves Invoice
on Day 5
BANK
Invoice-Net 60
Buyer Earns
0.75% APR until
Due Date
Suppliers
Factor at 20+%
APR
1.
2.
3.
Banks Benefit from Payment Inefficiency

23. Never Ending Friction Between Buyers and Suppliers

24. Payables as an Opportunity
0 DAYS
invoice
10-15 DAYS
approval
60 DAYS
due date
OPPORTUNITY
AVERAGE PAYMENT TERMS (DAYS)
Anheuser-Busch
Hertz
Apple
Industry Average
120 DAYS
60 DAYS
45 DAYS
56 DAYS

25. Supply Chain Finance:
Great for largest suppliers (30-50);
provides limited scale; low P/L benefit
Dynamic Discounting:
Beneficial for deploying excess cash to drive P/L
benefits; Comes with DPO impact
Taulia Enhanced Discounting:
Increase profitability by capturing discounts
without using your own cash
Supplier Financing Landscape

26. Financing for All
30-50
LARGEST
SUPPLIERS
Few NUMBER OF SUPPLIERS Many
Typical Supplier Spend
Curve
Buyer Hurdle Rate
TAULIA ENHANCED DISCOUNTING
Single Integrated Platform for Taulia Supplier Finance, eInvoicing and P2P Platform
DYNAMIC DISCOUNTINGSCF
Alternative Financing
Interest Rate
(Not Addressed)

27. TAULIA PLATFORM
ERP
FINANCIAL INSTITUTION
Seamless Electronic Connectivity
SUPPLIERS
BUYERS

28. Use Your Cash or a Cash of a Third-Party.
Always Capture Discounts.
DYNAMIC DISCOUNTS ON NET
TERM INVOICES
(OPT-IN)
EXTENDED PAYMENT TERMS
ON TRADITIONAL DISCOUNTS
(OPT-IN)
$ $
$
$
$
ACTIVATE DYNAMIC PAYMENT
TERMS (CONTRACTUAL)
$
0.0%
1.0%
2.0%
3.0%
0 10 20 30
TAULIA ENHANCED DISCOUNTING
WITH THIRD PARTY CASH

29. Four-Step Discount Terms Methodology
Offer Early Payments for suppliers on NET terms
Actively promote “CashFlow” for maximum adoption
STEP 1
Optimize discount opportunity and capture for suppliers on
discount terms
“Extend” existing discount terms
STEP 2
Implement Dynamic Payment Terms (DPT) as standard
payment terms for Procurement
STEP 3
Actively convert suppliers to DPT
STEP 4

30. Dynamic Discounting Is a Win-Win
A sliding scale allows for higher discount the earlier the payment for ALL invoices
• Easier and cheaper access to capital
• Alternative to more expensive sources of financing such as Factoring
• Early payments offered through the same portal as eInvoicing
• Capture more Early Payment discounts
• Strengthen supplier relationships
• Risk-free short-term investments with double digit returns
• Typical $1M to $2M returns per $1B in-scope spend
Definition
Supplier Benefits
Buyer Benefits

31. Why Suppliers Choose Early Payment Discounting
Allow suppliers to get paid sooner
Payment dates are well under industry
averages
Discount rates can be less
expensive than alternative forms
of financing
More convenient than funding
alternatives
Better balance sheet Helps to meet quarterly targets

32. I. Current State of the Invoicing & Payables Process
II. Moving from Traditional Invoicing to Full Electronic Invoicing
III. Getting Suppliers On Board: 5 Supplier Value Propositions
IV. Supplier Discounts & Turning Issue Into Opportunity
V. Real World Success Stories
VI. Questions
Agenda

33. Will Buyers Generate Acceptable ROI?
“Taulia has saved us
more money quicker
than anticipated.”
- Ben Shaffer,
PG&E Finance Dept.
Source: PG&E
0
5
10
15
20
25
30
35
40
45
2008 2009 2010 2011 2012
Taulia Deployed in 2011
$46M
$31.4M
$10M
$5.8M$3.9M
$77.4M in Discounts

34. Will suppliers actually enroll?
0%
22%
44%
66%
88%
110%
Go-Live Week 1 Week 3 Week 5 Week 7
Taulia Previous solution
Results:
• Go-live 3.5 months after contract signature:
• 45% of previous networked suppliers
converted within 1 week
• 99% converted within 5 weeks
• Now enrolling non-previous networked
suppliers: 30% of invited enrolled within 1 ½
weeks
• $5M in discounts/Billion in spend
• 7 Employees in AP department

35. Is the integration smooth?
“Before we thought a seamless integration was nice to have. But what we
have learned is that it's more than nice, it just makes a tremendous,
tremendous difference. You're using a standard solution - you have the look
and feel of your ERP. You can't even tell when you're using your ERP or Taulia.
It's just a pure, endless, seamless solution.”
- Marcia Golden, AP Director
90% of suppliers
on-boarded
1.5 AP staff eliminated
through attrition

36. Will suppliers actively use the portal?
0
500
1000
1500
2000
2500
3000
Vendors Invited
Vendors Enrolled
Invoices Submitted
Gary Silsbe to discuss in next session.

37. Seamless ERP
Integration
Minimal IT
Support
Required
No Supplier Fees24/7
Visibility
Flexibility to
Ensure Millions
Saved
In Summary, what do I look for?

38. I. Current State of the Invoicing & Payables Process
II. Moving from Traditional Invoicing to Full Electronic Invoicing
III. Getting Suppliers On Board: 5 Supplier Value Propositions
IV. Supplier Discounts & Turning Issue Into Opportunity
V. Real World Success Stories
VI. Demonstration
VII. Questions
Agenda

39. Our Vision of Tomorrow For You
01
02
03
04
F R E E
P R O F I T S
A D O P T I O N
P A R T N E R
Free eInvoicing and Self-Services for your Suppliers
Increased Profits From Early Payment Discounting
Supplier Onboarding Guarantee
Greatly Improved Suppliers Relationships

40. Questions?
Get in touch with us!
Chris Cauley
Senior Director Solution Consulting, Taulia
Office: 415-376-8280 x7085
E-mail: chris.cauley@taulia.com
Twitter: @cauley3