Spend Management Made Easy with Smart Contracts
Pricebooks are very beneficial for a sales team at the start of the sales process. However, during negotiations, prices are often modified to accommodate incentives such as volume discounts, packaging with other products, changes to specifications, or a singular deal for a particular project. This can all quickly lead to complex pricing structures that need to be tracked and recorded.
In addition, different suppliers often have very different names for the same product or service. This becomes an even greater challenge when crossing international borders. If you order a hood for your car in the UK you will get something very different than if you placed that order in the US. This variety of terminology alone can lead to significant confusion.
The time it takes to reconcile an invoice by performing a forensic-level inspection to confirm pricing per year, per product, per project and discount per supplier, in an effort to identify any errors, can hold up an invoice for months. In many instances, companies are unable to take advantage of a negotiated quick-pay discount through an inability to process the paperwork fast enough.
Spend management does not have to be challenging, even with complex invoices.
It’s time to automate your spend management, making the data and processes work for you.
By using smart contracts, organizations can automate the calculation of pricing according to the contract terms, using fixed pricing, discount scales, or a variable price-feed from a third-party data source (e.g. OPIS diesel rack price) as necessary. The calculation is driven by operational Internet of Things (IoT) data to automatically validate contracted transactions and calculate the price per the agreement.
The lack of access to real-time data is a major source of friction in payment operations, and smart contracts solve this problem.
Register for our webinar, Removing Complexity from Payments, to discover how you can use your operational data referencing a price book, or a price feed to automatically verify and calculate precise pricing based on the terms of your commercial agreements.