This is the strategy behind cash management for Nitor. An invoice is a financial instrument (ok, not by SEC definition) but it has value to both payers and payees. Let’s break this down in simple terms:
Money – simple, it’s the money owed or owing and enough said here.
Timing – when do you pay the money and what value does that have to the receiving party?
Cost of Money – what cost of capital do you and your supplier have?
Incentives – are there potential other benefits you have based on the cash management strategy you deploy?
Nitor can help your organization understand the value levers across these four dimensions to build a comprehensive strategy to monetize your Payables. Procurement organizations work with suppliers every day. In our experience, the Procurement organization is in the best position to evaluate a supplier’s wants and needs. This creates additional leverage points for your organization; balancing cost, speed, innovation, quality and risk across your supply base.
If you are interested in making Procurement truly a profit center, with easy-to-measure, repeatable, bottom line efficiency – we should talk.