A substantial challenge for any supplier is to manage the risk of non-payment by buyers. Buyers expect suppliers to ship goods and provide credit - but suppliers have their own financial pressures and need to reassure their own lenders that buyers will pay in good time. PrimaApprove allows buyers to strengthen their supply chains by automating a process of invoice approval at shipment. This increases the confidence that suppliers and their financiers have in the supply chain and enables suppliers to access early payment at lower costs and more easily should they need it.
PrimaApprove is an automated and straight-through processing engine that takes matched invoices and digital data on shipping documents to drive an automatic payment approval on invoices. It can operate at shipment, and builds on the PrimaShip and PrimaMatch products to deliver big wins for buyers and suppliers alike.
An approval is made up of two elements:
The percentage of the invoice that is approved (eg: 90%)
The cost, if any, for a supplier to access early payment (using PrimaEarlyPay or PrimaSCF).
The approval levels (percentage and cost) are automatically delivered via a rules engine that the buyer controls. The rules engine compares up to 100 different aspects of the paperwork and data provided by the supplier at the time of shipment. It is, literally:
Ship on Monday
Documents on Tuesday
Approval (and possibly payment) on Wednesday
The approval engine is controlled by the buyer. Setting tolerances and then comparing different data points across shipping documents, POs and the PO match and the invoices allows the risk level in the shipment to be measured and the percentage approved and the cost of early payment to be computed automatically. If the parameters of documents or data fall outside specified tolerances, then approvals are escalated automatically to the right teams at the buyer for consideration.
These kinds of processes have only be available to the largest corporates globally - able to invest many $ millions in their accounting and ERP systems. PrimaApprove brings these outcomes down to a very low cost, available to SME and mid-cap companies that do not want to invest heavily in new accounting and ERP systems themselves.
Our platform has six components
Different parts of our platform cover different elements of the documents and cash process flowing through supply chains.
PrimaApprove links through to other components that can be used to achieve an automated, straight-through process on paperwork, approvals and payments.
Most clients realise savings of up to 1% or more on the costs of goods that they purchase - simply by making documents and cash flow more efficiently through their supply chains.