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Best Trade/Supply Chain

Finance Solution

Kuehne + Nagel

Schindellegi, Switzerland

Roger Sutter, Group Treasurer

E-invoicing platform offers early payment option

Company profile

Since 1890, when the business was founded in Bremen, Germany by August Kuehne and Friedrich Nagel, Kuehne + Nagel

has grown into one of the world’s leading logistics providers. Today, the Kuehne + Nagel Group has some 1,300 offices in

more than 100 countries, with over 70,000 employees.

The challenge

Kuehne + Nagel (KN) wanted to provide its suppliers with an early

payment solution without having suppliers or KN to connect to

different platforms. The existing e-invoicing platform was extended

with an early payment option with the following objectives:

One platform for invoicing and receivable purchase activities.

Efficient on-boarding.

Possibility for payment within a few days.

Full invoice status transparency to suppliers.

Possibility for full ERP integration on KN and supplier side.

Multi-bank possibility for financing of receivable

purchase activities.

Attractive financing rates.

Global solution.

The solution

KN is moving from paper to electronic invoices and handles purchase

orders with auto-matching functionality in the ERP, allowing fast and

efficient invoice handling and approval processes.

Roger Sutter, Group Treasurer explains, “Together with our

e-invoicing partner, Tradeshift, and our key relationship bank, Citi, we

developed a fully integrated, one channel, seamless straight through

invoice-to-cash platform. It is complemented with an accelerated

supplier payment feature in the form of a receivable purchase option.”

This solution allows a supplier to raise an invoice electronically online

and to receive payment as early as within three days when

participating in the receivables purchase programme. Suppliers can

monitor the status of the invoice and on the same website interface all

necessary details related to the early payment (eg payment date,

discount fee, etc) into the supplier’s ERP. Roger Sutter says, “We

created for our suppliers an integrated website for all invoicing and

receivable purchase activities and have this now live in our key

markets in Europe and North America – a total of 14 countries.”

Best practice and innovation

This innovative platform for invoice-to-cash cycle (including ERP

connectivity) integrates KN’s e-invoicing and banking providers on a

single platform. Each party ensured that best practices in their area

of expertise is being followed, creating this unique solution. This

innovation links an e-invoicing platform to a key financial partner to

deliver a seamless technically integrated omni-global connectivity

channel for suppliers.

Harnessing new technology and capitalising on the global footprint of

KN, both the banking and the e-invoicing partner have significantly

improved the invoice-to-cash cycle for KN’s suppliers and ensure fast

invoice payment for those suppliers who participate in the receivables

purchase programme.

An intuitive on-boarding website facilitates the receivable purchase

solution, including chat functionality with the bank and access to

marketing and on-boarding documentation.

This innovative solution allowed KN to negotiate attractive financing

rates for the benefit of its suppliers.

Roger Sutter concludes, “In collaboration with our key partners we

significantly improve our suppliers’ cash cycle, allow efficient

invoice-to-cash processing through one platform and create working

capital benefits for all participants.”

Key benefits

Single platform with full technical integration.

Significant efficiency gains.

Significant working capital improvement.

250+ suppliers now on board.

Global availability of the solution.

Melanie Girouard, Citi and Benedikt Zimmermann-Kuehne, Kuehne + Nagel

Winner video interview 12 | treasurytoday Adam Smith Awards © August 2017