E commerce Company ROI

eCommerce CompanyThe Case for Supplier Payment Operations

AutomationPrepared on: 03/03/2017

Tipalti Confidential – Do Not Distribute

What We Heard

• Need to offer more payment options to supplier to stay competitive

• Higher costs due to rejected payments and errors• Wasted time on manual payment reconciliation• Increasing calls due to poor visibility into payment statuses• Time-intensive processes can’t keep pace with growth;

impacts profitability• Regulatory, tax, and financial controls risk exposure can

impact payouts to fraudsters


One System to Manage Global Freelancers Payment Operations

Suppliers

Payer

The Desired State

Domestic & Global Remittance

SupplierVetting

Tax FormCollection & Validation

SupplierRegistration

Payment Reconciliation

1099/1042-S Preparation

Issue Handling & Resolution

Supplier Communications

PaymentInstructions/Approvals

eCommerce CompanyROI Analysis


Total Manual Hours Spent per Year

3,394 hrs

Blacklist / OFAC Screening: $11,538Payment Execution: $36,923Supplier Communication: $13,269

Freelancers Onboarding: $3,692Payment Approval: $23,077

Payment Error Fees: $55,869Payment Reconciliation: $34,6151099/1042-2 Reporting: $7,436


Savings AnalysiseCommerce

Company +

Differentiation Retain and attract new suppliers Expand to other markets more

efficiently

Scalability Eliminate 80% of current AP workload Don’t need to staff up AP as you grow

globally

Compliance Avoid compliance penalties Strengthen tax, regulatory, and

financial controls

Benefits

ROI ImprovementNet Savings with Tipalti Cost Included

Year 1

Year 2

Year 3

10.04x

16.53x

22.83x

3-Year ROINet Savings With Tipalti Cost Included

$607,872Payback PeriodImplementation Time Included

0.00 months

Breakeven Analysis


Area Business Benefit

Self-Service Onboarding Remove administrative overhead from strategic finance professionals Improve data quality Eliminate payment error costs

Digital Tax Form Collection Protect the company against tax non-compliance and associated cost Remove administrative overhead from strategic finance professionals Ensure you are only paying legitimate suppliers

OFAC & AML Checks Protect the company against non-compliance Protect from fines and penalties

Mass Global Remittance Execute effectively on international growth aspirations Enterprise-grade financial controls Minimize or eliminate checks (leading source of fraud)

Proactive Communication Minimize administration of valued staff Provide transparency around payments to suppliers

Payment Reconciliation Accelerate financial close Improve cash forecasting

Foundation to scale the business while maintaining a lean finance department Minimize risk exposure to the company Focus finance staff on strategic initiatives

Tipalti’s Impact to the CFO

8

Solving Partner Payment Operations

99%+ Retention • $2.75B+ in Transactions Managed Annually • 1.5M+ Payees

Sales

E commerce Company ROI