News | October 20, 2008

DO2 Releases New Supply Chain Finance Application For Buyers And Banks

CALGARY, Canada & HOUSTON--(BUSINESS WIRE)--DO2 Technologies Inc., a global leader in electronic invoicing, today announced the release of a new supply chain finance application, OpenInvoice FinanceTM, that provides innovative functionality for both buyer-funded and bank-funded supplier financing.

In these times of tight credit, finding innovative and streamlined ways of financing increasingly cash-strapped buyers and suppliers is of critical importance. OpenInvoice Finance is the first application to offer an integrated suite of tools to satisfy the parties that are involved in financing the supply chain: the buyer, the supplier and the bank or other financial institution. Integrated with DO2's leading e-invoicing solution, OpenInvoice Finance provides a complete platform for presenting early payment opportunities to suppliers, while providing a full range of tools for buyers to optimize working capital.

Resolving the DPO – DSO Tug-Of-War
A favored tool for the optimization of working capital among buyers is to extend DPO (Days Payables Outstanding), leading to a number of benefits – working capital improvement, increased cash liquidity and even term standardization across the supply chain. However, from the supplier's perspective, this means increasing DSO (Days Sales Outstanding), more cash tied up in the order-to-cash cycle and reduced operating capital. So, buyers want to extend DPO, suppliers want to decrease DSO, often resulting in suppliers resisting the change in payment terms. And even when they do agree to a longer payment cycle, their higher costs associated with increased DSO are ultimately passed on to the buyer.

OpenInvoice Finance resolves this dilemma by providing the following functionality:

Early Payment Discount Management: the ability for buyers to offer and manage early payment discounts to its supply chain through an automated collaborative platform.
Dynamic Discounting: allows buyers and sellers to dynamically change the payment terms, such as net 30, to accelerate the payment based on a sliding scale discount.
Bank-Funded Financing: When buyers do not have the surplus cash to offer early payment discounts, they can still extend their DPO by allowing third party financial institutions to provide early payment to the supplier at an appropriate interest rate. OpenInvoice Finance provides a complete suite of tools for banks to facilitate these transactions, including visibility into historical transactions for evaluating financing risk.
Buyer Flexibility: Offer both buyer-funded and bank-funded financing through the same application, with the buyer determining the appropriate financing approach on a supplier-by-supplier basis.
Fully Integrated with OpenInvoiceTM: For trading partners that utilize OpenInvoice, DO2's leading e-invoicing platform, buyers, suppliers and banks enjoy unique visibility into transactional history. This provides invaluable insight into payment history, and allows all parties to assess risk associated with financing offers.

"The release of OpenInvoice Finance really changes the Supply Chain Finance playing field," said Rod Munro, President and CEO, DO2 Technologies. "The fact that OpenInvoice Finance is integrated with our e-invoicing platform is extremely important, because it means that the financing offers, whether by buyer or bank, are all made online through a collaborative platform that already has 10,000 transacting trading partners."

The OpenInvoice platform provides a complete suite of electronic invoicing and supply chain finance functions for buyers and suppliers, including electronic invoice submission and adjudication workflow, receipt management and matching, price reconciliation, and much more.

About DO2 Technologies Inc.
DO2 Technologies Inc. (www.do2.com) is the leading global provider of electronic-invoicing software solutions that enable buyers and suppliers to automate shared financial processes. More than 30,000 users at over 10,000 companies use DO2 solutions to process millions of e-invoices and procurement documents annually. DO2's OpenInvoice platform delivers the most complete solution, offering modules covering the full scope of procurement to payment business functions; from purchase-order integration and transaction processing to discount management, price compliance and approvals workflow.

DO2's solution platform is pre-integrated with financial accounting systems from SAP™, Oracle™ and many other ERP providers. OpenInvoice is NetWeaver™ certified and provides complete support for SAP/SRM™ integration; from purchase-order punch-out to service-entry and goods receipt reconciliation.

OpenInvoice is a SAAS (software as a service) solution, delivered "on-demand" over the Internet, allowing rapid adoption, lower cost of ownership and faster customer return on investment.

DO2 Technologies Inc., do2.com, OpenInvoice and the DO2 Technologies Inc. logo are either trademarks, trade names or service marks of DO2 Technologies Inc. and its licensors, or are the property of their respective owners. These marks may not be copied, imitated or used, in whole or in part, without the express prior written permission of DO2 Technologies Inc.