Dynamic Discount Management
Dynamic Discount Management (DDM) solutions allow businesses to uncover hidden savings opportunities in their supply chains by turning their Accounts Payable (AP) into a cash-generating asset and relevant short-term investment option.
DDM is rapidly gaining acceptance among AP and Treasury departments at large corporate organizations due to the opportunity to save millions (up to 0.5% of their annual spend) by offering to pay suppliers early if they discount their invoices. Executives benefit from short-term investment value that can be achieved by paying invoices early.
1. Reduce your spend – earn significantly more Early Payment discounts
- Additional discounts on non-discount invoices
- Maximize capture of traditional discounts
2. Lets you benefit from double-digit, risk-free returns
- Paying approved invoices earlier is risk-free
- Discounts that represent double-digit interest rates are attractive to many of your Suppliers – they opt-in
3. Improves Supplier Relationships
- Suppliers benefit from fast and on-demand access to cash at acceptable rates
- Unlike factoring, there is a 100% payout
- No paperwork, hidden fees or hassles
CCP Global and its Partners offer the most innovative and “game changing” DDM solutions available today. These platforms will work seamlessly with your existing ERP and Spend Management systems, with no additional IT infrastructure required. These hosted DDM solutions can typically be up and running in a few short weeks, without the hassle of complex software installations, including:
Our Dynamic Discounting solution will provide you with all the processes and tools you will need for a successful introduction and roll-out of early payments. This includes a user-friendly vendor portal that provides online communication and helpful self-services for quick and easy supplier adoption and supplier on-boarding.
You may be missing out on valuable discounts due to your company’s late invoice approvals. If so, consider inviting your suppliers to adopt dynamic payment terms through a self-service vendor portal.
How it’s done:
- Define dynamic payment terms within the familiar ERP/Spend Management environment.
- A straightforward analysis helps you identify the most promising candidates.
- Invite suppliers to opt in.
Upon supplier acceptance, our system will ensure that payments are handled properly. Meanwhile, extensive reporting capabilities on your discount capture help you stay in full control.
According to a recent Aberdeen Group survey, roughly 15% of your AP clerk’s time is consumed by supplier inquiries, with two of the most common types being payment and invoice status requests. The Vendor Portal immediately eliminates such requests because it allows suppliers to log on and check the status on their own. As a result, AP clerks save valuable time and suppliers get 24/7, real-time visibility into their account.
- Allows suppliers to securely update and maintain their account information (vendor master data)
- Enables dynamic discounting and early payments
- Will immediately be recognized as your vendor portal, branded with your logo and color scheme
- On-demand solution that immediately and seamlessly connects to your ERP.
Supplier Enablement – Objectives
The Dynamic Discount Management (DDM) solution is designed to for quick and efficient enrollment of your suppliers so that the buying organization can sooner realize the rewards of on-demand management of buyer-supplier relationships.
The key objectives are threefold:
(1) To eliminate as much manual effort as possible to ensure that the enrollment process will not be disruptive to your AP department;
(2) To facilitate the enrollment of ALL your vendors. Self services benefit every one of your vendors, and, therefore, should not be limited to only a percentage of suppliers. Although we highly recommend you enable all vendors, the DDM enrollment process supports phases, including a suggested initial pilot phase.
(3) To ensure security – the Enrollment process is designed to be secure and provide the buyer with added levels of security, uniquely identifying the vendor as your supplier.
Why CCP Global Supplier Enablement Services?
CCP Global Supplier Enablement provides options for moving suppliers to an electronic process. Leverage our proven methodology and services team to handle enablement for you. Based upon CCP Global’s best practices expertise, these tools empower you to quickly target and enroll new suppliers to meet your objectives. Companies that partner with CCP Global Supplier Enablement Services benefit from the following value-added capabilities that ensure effective and efficient trading partner collaboration. Organizations like Johnson & Johnson, Best Buy, Dell, Merck, Novartis and many other Fortune 1000 firms have trusted CCP Global over the last 13 years.
Supplier Enablement Strategy
Leverage CCP Global’s expertise to design and develop an effective supplier enablement strategy that determines the type of enablement your suppliers require based upon their profile, credit history, purchase order and invoice volume, and spend. Cleansing, duplicate detection (de-duping) and segmentation of your vendor master data helps to effectively target and onboard suppliers, in waves by supplier tiers, according to your objectives.
Premium Dynamic Discount Management Enablement
CCP Global’s experienced Supplier Enablement team works with the CFO or equivalent of the supplier organization to help align their cash management strategy with DDM’s Supplier Cash Planner.
Implementation Support, System Testing, and Project Management
CCP Global services can help you design and develop processes, infrastructure, and materials necessary to drive the enablement, testing, and ongoing support of suppliers. We also offer project management and quality assurance processes critical to the success of supplier management.
Supplier Education – (need to convert to DDM)
CCP Global offers extensive standard CCP Global materials and technical documentation for supplier training and support. Topics include CCP Global Network admin user guide, FAQs, technical documentation, and free online seminars that cover the fundamentals of CCP Global Supplier Solutions in simple terms.
Supplier Tracking, Follow-up, and Help Desk
Standard reports track the enablement progress of suppliers throughout the process. There’s also the CCP Global Supplier Help Desk, which provides application-related customer support and issue resolution.
Supplier Enablement Excellence with CCP Global
With CCP Global Supplier Enablement, you have the expertise, methodology, and technology you need to exceed your supplier enablement objectives. Organizations that enable key suppliers achieve DDM maturity in ¼ of the time.