In this series, we explore Tradeshift’s vision for a powerful and elegant P2P solution.
Compliance is at the core of finance and procurement functions. Without flawless execution, the risk to the business is staggering. Poor compliance exposes businesses to all three major categories of risk: regulatory, competitive, and market.
Consider the global nature of supply chains and large corporate P2P software and it becomes clear compliance stopgaps and monitoring needs to underpin all tools and processes. We’ll explore this need in part two of our ongoing series on the “pillars of P2P,” the components essential to a global procure-to-pay solution.
In the first installment of the series, we explored the need to bring 100% of spend under management and how Tradeshift addresses this in the product. In parts three and four, we’ll cover the adoption barrier and the innovation imperative.
Global compliance everywhere you operate
The headline above sounds obvious but is surprisingly lacking in many Fortune 500 companies. For example, many finance departments remain unaware that China has initiated the largest corporate tax overhaul in a generation, moving towards a VAT model. It’s set to take effect in 2017 and most companies with major suppliers in China are woefully unprepared.
Tradeshift’s P2P solution is only one of two compliant options for this in the world. It has baked in best-in-class compliance, not only for China, but for all countries our customers could potentially do business.
At the core, Tradeshift’s P2P solutions allows you to avoid fines and audit risk, while reducing the cycle time of your invoice processing. This offers peace of mind for the c-suite and allows procurement and AP professionals to free up resources for more strategic initiatives. Think of it as local compliance but a global approach.
Real-time, modern collaboration
Tradeshift is the most collaborative P2P solution in the market today. This is especially relevant to any discussion around compliance as Tradeshift’s collaboration features brings communication with your suppliers into the system.
Communication outside of the system between your users and your suppliers creates a non-compliant environment. To avoid this, Tradeshift matches your users’ expectations as consumers, so they’ll actually use it. Our collaboration is not just easy to use, it also enhances compliance as all messages are recorded in context with the document history, providing true visibility into the history of the document.
Locked-in compliance and fast processing times mean more gains to the bottom line.
All your processes, inside your four walls
With Tradeshift’s document firewall, you can block non-compliant invoices based on rules you dictate. For most suppliers, you’ll likely choose to accept only 100% compliant invoices. However, for unique cases and strategic suppliers you have the ability to adjust the rules to your acceptable level of deviation.
Document validation capabilities protect AP from non-compliant invoices that slow you down by checking fields against correct data and validating against the custom rules mentioned above. The system stops suppliers from sending invoices with errors, preventing exceptions before they’re sent.
Above all, top-rate compliance is a must have–and an all of nothing game. It’s the bedrock of a successful procure-to-pay solution and a core function for AP, making it the second of the four pillars of P2P.
Stay tuned for the next installment in the series and in the meantime check out the Tradeshift Overview below for more information.
What to read next:
The pillars of P2P: Part 1–spend under management