Lecture Notes: Digital Transformation in Procurement and AP

Introduction

Speakers:
- Chris Suresh, Global Practice Leader of Procurement at Bristlecone
- Mike Judd, Senior Director of Product Marketing at Tradeshift
Topic: Using digital transformation to create value and unlock working capital in supply chains

Definition: Varies among individuals but generally refers to leveraging digital tools to transform business processes and outcomes.
Everyday Examples: Using smartphone apps for convenience and real-time interaction (e.g., Uber, food delivery apps).
Workplace Challenges: Lack of real-time status updates for invoices, orders, and approvals, unlike the seamless digital experience in personal life.
Goals: Achieve real-time, connected, and context-responsive business processes similar to digital experiences at home.

Electronic: Moving documents around faster without changing manual intervention requirements (e.g., electronic clocks).
Digital: Full real-time, context-aware experience that integrates deeply with workflows and outcomes (e.g., smartphones auto-adjusting time zones).
Current Business State: Most businesses still in primitive stages of digitization compared to consumer tech (e.g., limited mobile applications for B2B).

Evolution of digital business processes from individual electronic records to interconnected real-time networks (e.g., moving from emailing photos to family to sharing them instantly via real-time platforms).
B2C vs. B2B: Consumer side has apps for everything; B2B still catching up. Apps will drive faster functionality and growth in B2B.
Marketplaces: Enable real-time commercial interactions across diverse participants (buyers, sellers, partners).

Traits: Collaborative, outcome-based, adaptive, leveraging network and apps for efficiencies and real-time operations.
Electronic to Digital Journey: Moving from isolated, reactive, process-oriented systems to integrated, proactive, and outcome-focused systems.
Key Framework: Fixed what's broken -> Operational Advantage -> Strategic Advantage -> Adaptive Enterprise.
Long-Term Goal: Zero touch AP where automation handles most tasks seamlessly.

Early Payment Opportunities: Encourage seller participation by offering early payments which benefits both sellers (quick cash) and buyers (discounts, improved working capital).
Network Benefits: Increased financial opportunities and collaboration potential across supply chain networks.

Automated Invoice Processing: Aim for more straight-through processing to reduce manual workflows, coding, and approval delays.
Machine Learning: Utilize AI for suggestions and improvements, minimizing human intervention except where absolutely necessary.
Real-Time Collaboration: Enabled by digital networks, akin to the flexibility of consumer apps (e.g., Uber).

Multinational consumer products company: Reduced seller inquiries, increased e-invoicing, extended DPO, started early payment programs.
Results: Shorter invoice processing times, increased discount capture rates, higher no-touch processing rates.

Digital Transformation Path: Move towards a fully adaptive, collaborative enterprise using network and app solutions tailored to specific business needs.
Partnerships Key: Collaboration with specialists like Bristlecone and leveraging platforms like Tradeshift for enhanced digital experiences in B2B.

Note: Real-time questions were encouraged but can also follow up via provided contact email.