DXC recently signed a deal with Tradeshift to help enterprises automate and transform their procure-to-pay processes. The collaboration is expected to transform procure-to-pay processes for the clients into an automated, business-process-as-a-service model by the deployment of DXC Bionix. DXC defines Bionix as a new digital-generation services delivery model that uses analytics, artificial intelligence (AI), lean processes, and automation to deliver intelligent automation at scale. Implementation of Bionix for procure-to-pay processes will help customers to drive touchless processing for invoices, improve cash optimization, and create data-driven insights.
It is time to adopt emerging technologies to digitalize and simplify trade transactions
For a supply chain focused firm such as Tradeshift, the accounts payable and procurement functions of a finance organization act as an important aspect for a successful business. Enterprises need to digitize supplier and trade processes to increases agility to adapt to changing business dynamics.
As of now Accounts Payable and Procurement Processes are manual and fragmented and are prone to errors. An increase in the volume of invoices often results in invoice errors and compliance issues. By leveraging different emerging technology such as artificial intelligence, machine learning, robotic process automation, analytics, etc. these processes can be transformed helping the firm to achieve operational excellence. Automation of the process can save companies valuable time which is lost on repetitive and redundant invoicing processes
Comprehensive and fully digitized procurement and payables solutions hold the key for digitalized supply chain management
As the world is getting increasingly digital, organizations need to proactively work on reducing manual processes to stay relevant. Many platforms and solutions such as Tradeshift are trying to address this need for transformation in the area’s procurement and payables. However, apart from the technology, what matters for a solution to be successful is knowledge of the business process and its dependencies across the value chain. DXC’s business process services group runs F&A processes for many clients and is in a good position to leverage Tradeshift’s technology to impact transformation for its clients.
With financial intermediaries also part of the Tradeshift network in changing scenarios apart from supplier/buyers, these financial intermediaries can view historical transactions between the parties and buyers and can offer auto-factoring of invoices to the suppliers. It is an always-on dynamic discounting option for suppliers without a funding decision required from the buyer’s treasury department on the use of funds. This enables suppliers to get paid in a few days vs. standard payment terms that can range up to 90 days. On the buyer side, the same financial firms can offer trade financing to extend credit beyond payment term windows if needed. This enhanced liquidity capability is significantly increasing digital adoption with DXC solutions in the marketplace.
Bottom line: Transactional processes need to be digitalized to sustain in this disruptive and competitive world. Tradeshift and DXC’s alignment makes this a step closer to reality.
DXC Bionix facilitates greater insights, speed, and efficiency and promises more informed decisions, while its BPS services have the domain knowledge to guide clients with Tradeshift’s technology. However, many of DXC’s competitors have developed similar emerging technology capabilities, and DXC needs to prove itself in solving the customer problems and staying ahead of the curve for F&A and procurement on Bionix as well as operational expertise. This partnership comes at the time of a pandemic, which has been increasing the importance of touchless processing. With the collaboration of DXC and Tradeshift, they can drive touchless processing for invoices by end-to-end electronic processes, eliminating the need for scanning and abstracting paper invoices.
