JPMorgan reports that its Order-to-Pay service for business settlement is helping clients cut payables costs and free up cash during the current financial crisis. Based upon transaction data derived from the JPMorgan Business Settlement Network (JBSN) through September 2008, many of JPMorgans Order-to-Pay clients are realizing unprecedented savings by taking advantage of early payment discounts, and most have improved working capital by extending Days Payable Outstanding (DPO).
For example, one Fortune 500 client in the telecommunications industry will capture more than $30 million in early payment discounts this year, a 500% increase from its first year of service. Another Fortune 500 client in the pharmaceuticals industry will capture more than $4 million in discount savings, about a 300% increase from its first year.
JPMorgans Order-to-Pay service automates purchase order delivery, invoice and payment processing, and discount management by connecting buyers with their suppliers across a secure settlement network. The service features a no-cost portal for suppliers, while the JPMorgan Supplier Services organization helps clients target, recruit and onboard new suppliers.
JPMorgans Order-to-Pay clients are transforming their financial settlement operations in difficult market conditions and leveraging significant discount opportunities, says Eduardo Vergara, global commercial card executive, JPMorgan. As organizations look to maintain a healthy balance sheet, Order-to-Pay remains a valuable source of liquidity for our clients and tens of thousands of participating suppliers.
Key Performance Indicators (KPIs) for measuring Order-to-Pay performance are derived from the more than $230 billion in business transactions that have been processed to date. Clients can leverage predefined KPIs to set process automation, working capital and supplier management objectives and measure them against industry results.
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