Kyriba dd webinar ss

© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 11

DYNAMIC DISCOUNTING AND ITS KEY BENEFITS

November 7th, 2013


Product Overview


• Payable Financing / Reverse Factoring - first in a suite of Supply Chain Finance modules

• Dynamic Discounting

• Leverages Payment Factory and Cash Visibility capabilities within Kyriba

Supply Chain Finance


Details of Dynamic Discounting

• Buyer offers dynamic payment terms to its suppliers• Should a supplier choose to be paid earlier than term,

buyer earns discount• Buyer sets and controls the discount rate that is

dynamically calculated for entire term of invoice• Opportunity for buyer to earn discounts on its entire

spend, not just pre-negotiated discount terms from a small percentage of suppliers

• Allows suppliers to control payment timing and manage their cash flows


Benefits – Dynamic DiscountingBuyer• A valuable tool for cash

optimization - alternative for investing short term excess liquidity

• Earn above market, risk free returns on annual spend by paying suppliers in advance

• Flexibility – enable or stop early payment options at any time

• Minimize counterparty risk from improved financial health through the supply chain

Supplier• In control of payment

receipt, can request payment at any point of invoice term, depending on working capital needs

• Alternate source of working capital finance

• Visibility of approved invoices and payments to better manage working capital needs


Functional Workflow - Dynamic Discounting�

Approved invoice

Purchase order

Product delivery

Invoice

Dynamic discount offer

Request for early payment

Early payment

Payment of non-discounted invoices at maturity

Supply chain finance platform

Buyer Supplier

Impact of Dynamic Discounting


Neutral Negative

Solutions Impacting Working Capital in S2S Space

Solution

Payment Term Management

Early Pay DiscountingDynamic Discounting

Payable Financing

Notes: 1 Assumes monthly settlement cycle with issuing bank2 Assumes Buyer starts with all check payments

Positive

Impact on Buyer

Working Capital

EBIT Process Efficiency

Impact on Supplier

Working Capital

EBIT

e-Procurement

e-Invoicing

Strategic Sourcing and Procurement

PurchasingCards1

Optimal Purchasing Channels

Optimal Payment Channels2

Supply Chain Finance Tools


SCF Tools’ Benefits for Companies with $1B in spend and 100K Invoices and Payments

Solution

Payment Term Management

Early Pay Discounting

Dynamic Discounting

Payable Financing

Financial Benefit to BuyerWorking Capital

ImpactCost Reduction

($M)

6 - 12 days DPO improvement -

2 - 3 days DPO degradation $1.2M

5 - 8 days DPO degradation $2.0M

12 - 20 days DPO improvement -

e-Procurement

e-Invoicing

Strategic Sourcing and Procurement

PurchasingCards

Other Purchasing Channels

Other Payment Channels

2 - 3 days DPOimprovement

$0.9M

Needs further evaluation

1 - 2 days DPO degradation$0.1M

- $0.6M

- $0.4M

- $2M

7 days DPO improvement $7M

Kyriba Supply Chain Finance Platform


• Multibank–Enables participation from multiple funding sources–Alleviates credit exposure issues, reduces counterparty

risk–Flexibility for buyer to choose banks per region

• Visibility–Centralized workflow: Buyer, Supplier, Bank–Provides real-time visibility to invoices approved for

payment by buyer, to suppliers and banks• Ease of Use

–Easy to work with multiple banks as well as with one bank –Encourages onboarding of suppliers

Kyriba SCF Platform


Integrates with Treasury• Cash forecasts to optimize working capital decision making• Payment of financed and non-financed invoices from one platformIntegrated SCF Solution• Administer a global Dynamic Discounting and Payable financing

solution, on one integrated platformScalable• Improve productivity so that program can expand (but team

doesn’t have to):• Bank connections• ERP Integration• Global Reach• Web-based

Kyriba SCF Platform


Financial Partners

Suppliers

Buyer

Import from ERPs

Export FinanceRequest

Forecast Creation

PaymentCreation

Access by all parties: • Buyers • Suppliers • Financial Partners

Integration with Treasury Workflow:• Cash Forecast• Payments

Kyriba SCF Platform


Additional Resources

Kyriba Trade Solutions fact sheet http://goo.gl/AbYm2f

Improving Working Capital infographic http://goo.gl/LTIY1c

SCF Payable and Receivable Solutions guide http://goo.gl/byNxPA

Treasury Management Systems and SCF white paper http://goo.gl/YceL3P


Contact Kyriba

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twitter.com/kyribacorp

linkedin.com/company/kyriba-corporation

youtube.com/kyribacorp

slideshare.com/kyriba

kyriba.com/blog

Kyriba dd webinar ss

Economy & Finance

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