Kyriba is one of three vendors featured in a just-published report on supply chain finance (SCF), with two differentiating strengths— customizable supplier onboarding, and integration of SCF with a full suite of treasury functionality— called out in particular.

The report from Strategic Treasurer, entitled “The Definitive Guide to Supply Chain Finance Technology Solutions,” focuses on how financial technology firms (Fintechs) like Kyriba are disrupting the multi-billion dollar industry with software-as-a-service (SaaS) solutions. These vendors are opening up SCF to a much wider range of companies, including SMEs, and dramatically expanding options for all supply chain participants and funders.

You need to read this report if your organization is:

  • A buyer looking to optimize cash management while reducing operational risk by ensuring access to sufficient working capital deep into your supply chains.
  • A vendor needing to get paid sooner and wanting to fund your operations at a lower rate than you can get from a traditional bank.
  • A bank or other financial service interested in expanding SME lending with lower risk and costs.

Spotlight on leading disrupters

In the 54-page report, Kyriba, SAP Ariba and Taulia are featured as three Fintech leaders who are dissolving barriers that for decades made bank SCF programs available only to large buyers and a select set of their most credit-worthy suppliers. Since the financial crisis of 2008, however, increasing concerns about working capital optimization, risk management and SME access to funding have spurred demand for a more inclusive approach. Fintechs are providing it, helping triple their share of the SCF market from five percent to 15 percent over the past decade.

Additional reading: How to Speedup Free Cash Flow in a Sluggish Economy

Kyriba’s Supply Chain Finance solution, which processed more than $1B in early pay discounts globally last year, is called out by the report’s authors for two unique strengths: its seamless integration of SCF capabilities with a broader treasury platform, and customizable supplier onboarding. Kyriba’s SCF solution incorporates flexible options for both dynamic discounting (funded by the buyer) and reverse factoring (funded by banks or other third-party financers). Buyers can manage both programs simultaneously within a single supplier portal and easily set up rules for which segments of their supply chain have access to them. Integration with treasury and payment functions means buyers can determine excess cash availability and direct it to SCF funding. SCF transactions trigger payments and updates to cash forecast, payment fraud, compliance and GL accounting processes.

The report points out that in addition to this integrated functionality, strong onboarding is crucial—industry surveys consistently rank supplier participation as the most important factor in SCF success. Kyriba onboarding helps buyers drive needed participation by making it easy to auto-generate custom email campaigns to build awareness and bring suppliers to custom web sign-up pages that guide them through the quick onboarding process. Dashboards provide buyers with real-time onboarding metrics to gauge success.

What’s ahead for SCF?

The report predicts Fintechs will continue to grow their share of the SCF market—which is growing overall at an annual rate of 15 percent to 20 percent globally. Why are Fintech solutions out-pacing traditional SCF? Strategic Treasurer says it’s because they are democratizing SCF so that it can be extended throughout the long-tail of supplier relationships while providing these unique benefits:

  • Easier connectivity options
  • Cheaper onboarding and implementation costs
  • More effective communication and interaction across supply chains

Still, there are challenges to overcome. Legal and regulatory inconsistencies continue to plague global SCF programs. While progress is being made in some regions, buyers must make sure their legal and operational teams are aware of these obstacles and choose an SCF vendor with experience in the regions they’re targeting.

Another challenge for many organizations is getting multiple internal departments aligned around the mutual benefits of SCF. Treasury and AP, of course, have different points of view, KPIs and priorities. Solutions like Kyriba’s, which unify treasury, payment and SCF functions, help by increasing visibility into how one area of responsibility affects another. The report also suggests forming a working capital council, spearheaded by treasury with representatives from every stakeholder department.

Want to learn more? Download “The Definitive Guide to Supply Chain Finance Technology Solutions” now.