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What Your Suppliers Really Think About You

May 20, 2014

Agenda Introduction

Industry Expert Perspective – Henry Ijams, PayStream

Supplier Fees

The Impact on Your Supply Chain

A Better Model

#tradeshift

Introductions

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Henry IjamsManaging Director, PayStream

Rinus StrydomVP Alliances & Solutions Consulting, Tradeshift

Supplier Fees

Why do Supplier Fees exist?

Supplier

Buyer

Generate network revenue & valuation

for provider

Reduce entry point for buyer

Pass costs to supplier

Add friction to supplier onboarding

Cost of doing business?

Pass fees back to customer

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Fee would be fine if…

They didn’t discriminate against low volume high value invoices.

They were a standard, low fee per invoice

No free einvoicing options existed

But NOT when directly tied to the invoice value!

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PayStream Advisors, 2013

Supplier participation is key to transformation

Number 1 Barrier to e-invoicing

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Buyer’s More Weary

Key factors when selecting a Supplier Network

Facilitates electronic payments

Global reach of network

Industry focus of network

Transaction costs (buyer)

Transaction costs (seller)

Number of existing suppliers on the network

26%

26%

27%

32%

38%

39%

©Ardent Partners - 2013

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Suppliers = Partners

Traditional View of Suppliers

New View of Partners

• Suppliers are there to provide goods/services as needed• Interactions with suppliers are kept to a minimum• Leverage is key to value• Price, price, price• Contracts and SLAs are the primary management and

communication tools

• Suppliers are a great source of knowledge, insight, expertise

• Our success is tied to that of our suppliers• Collaborating with suppliers is valuable on multiple fronts

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The Impact on Your Supply Chain

Competitor’s Fee Example 1

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Competitor’s Fee Example 2

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A Better Model

Tradeshift’s balanced value proposition

Supplier Buyer

Communicate & collaborate directly with your buyers.

Lower costs for your entire supply chain.Manage and track POs, invoices, and more.

Connect via web, integration or any accounting software.

Free. No supplier fees. Ever.

Communicate and collaborate with suppliers.Innovate past invoicing on top of an open platform.

One platform for all your business needs.

Reduce cost and friction for your entire supply chain.

#tradeshift

# of invoices

Size of Suppliers

# Of suppliers

Large Medium Small

Non-invasive eInvoicing options

Supplier Integration

Supplier Integration Supplier Integration

Supplier Validated CloudScan

Supplier Validated CloudScan

Web ApplicationPlug & Play connectors

Plug & Play connectors

Plug & Play connectors

CloudScan EnterpriseCloudScan Enterprise

CloudScan Ent.

CloudScan with AP validation

CloudScan with supplier validation

Web Application

Supplier Integration

Plug & Play connectors

Supplier Integration

Plug & Play connectors

Plug & Play connectors

Supplier Integration

100% (invoice volume)

100% (suppliers

)

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Keys to supplier participation

• Free to use

• More than a “portal”

• Value-added Apps

• Enterprise-driven

• Multiple on-ramps; CloudScan

• Supplier-to-supplierMulti-way onboarding

Easy to use

Provides real value

• Multiple integration options

• Cloud-based; no on-site installation

• User-friendly and mobile-optimized

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Tradeshift’s Open Platform Approach

TRADESHIFT PLATFORMDocument Transmission, Statuses, Messages, Integration, Security, API

SupplierBuyer

Order Management

Electronic Invoicing

Business Firewall

CloudScan® (Paper)

Collaborative Workflow

Financial Solutions

Build Your Own App

Supplier Management

Ability to expand functionality as needed

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What’s the top incentive for suppliers?

Get paid on time… or even early!

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Offering the value to your entire supply chain

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Bank Driven Platform Driven

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Questions?

Thanks for joining us!

• Register for our next webcast: tradeshift.com/suppliersfirst• Stay relevant, visit blog.tradeshift.com• Continue the conversation #tradeshift• Presentation and recording will be sent soon

What Your Suppliers Really Think About You

May 20, 2014