Driving Terms Extensions or Early Pay Discounts

Through the strategy of extending vendor payment terms with options for early pay discounts, V-Card and Supply Chain Financing, VPO offers hands-on implementation services to increase discounts, DPO, working capital and rebates, including:

• Developing the project plan for a terms extension initiative and establishing the Procurement, Finance and Systems implementation team
• Deciding terms extension and early pay discount options for the communication outreach to suppliers, including Finance approved APR strategy
• Creating the list of vendors for payment terms extensions through deep analysis and collaboration with Procurement managers
• Creating a data base of payment terms, spend, taxonomy and contact information, for the outreach team to onboard suppliers to terms extensions or discount, V-Card and supply chain financing options to current terms
• Developing the content of communications that conveys the terms extension, early pay discount, V-Card and SCF options to targeted suppliers for projects with and without Dynamic Discounting software
• Educating Procurement, Finance and Systems about the project and their roles
• Advising Systems on specifications that achieve the DPO and discount objectives when Dynamic Discounting software is part of implementation
• Measuring and reporting discount, DPO, capital, and rebate improvements and advising on overcoming obstacles to achieve success