How to have happy suppliers and save millions through dynamic discounting: a Case Study from Home Depot
At sharedserviceslink, we are seeing that when companies look to invest in automation technology, they are no longer looking at the pure automation cost savings, but want to know what the technology can do for the business, and how it can help achieve corporate objectives such as working capital improvement.
We love a good case-study, and we are impressed with some of the figures in Home Depot’s experience with Direct Commerce in their recent white paper.
Based in the US, Home Depot is the world’s largest home improvement specialty retailer. Despite their efficient electronic process for invoicing, their vendor dispute process was still very manual and time intensive, to the tune of about 5 million pieces of paper a year of manually submitted vendor disputed with supporting documentation. A process this big meant they had teams and systems in the US and in India trying to work through all of the disputes.
Working with Direct Commerce, Home Depot implemented automated workflow and dispute resolution, and in 6 months eliminated all of the disputes and automated the entire process, giving suppliers a portal to submit online and visibility over the entire process.
With the success of that project, Direct Commerce worked with Home Depot to implement other modules such as e-invoicing, self-service, and dynamic discounting.
The dynamic discounting feature provides the suppliers a calendar of availability for discount opportunities and in seconds, lets suppliers choose a discount option for each invoice. This is adding millions of dollars per year to the company’s bottom line profits.
For more information on how they achieved 300% ROI in one year, download their white paper and tune into the 5 minute podcast for more insight into how they got this project up and running.
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