Supplier Collaboration Portals for Component Manufacturers: Procure-to-Pay Automation and Working-Capital Outcomes
DOI:
https://doi.org/10.63397/ISCSITR-IJAI_04_01_002Keywords:
Supplier Collaboration, Procure-to-Pay Automation, Working Capital, Optimization, Days Payable Outstanding (DPO), Invoice Automation, Supply Chain FinanceAbstract
Supplier collaboration portal has become a disruptive facilitator of digital efficacy in the manufacturing industry that standardizes the purchaseto-pay (P2P) paradigm by way of real-time data transfer and artificially intelligent (AI) technologies. The paper shall look into the design of supplier collaboration systems that incorporate Advanced Shipping Notices (ASN), Purchase Order (PO) flips, and automated invoice processes in order to minimize operational friction between component manufacturers and their suppliers. Using the data gathered during Tier-1 and Tier-2 component manufacturers, the study assesses the extent to which digital connectivity through vendor scorecards and AI-assisted exception handling makes the business more transparent and the relationships among suppliers more robust. Through gaining advantage of automated document exchanges and performance monitoring, the proposed system will remove redundant in the reconciliation process, reduce invoice discrepancies and make sure the higher on-time delivery rates in complex supply networks.
The study also explores the financial impacts of automation on working-capital ratios especially Days Payable Outstanding (DPO), Days Inventory Outstanding (DIO) and dynamic discount capture. The empirical study shows that there are big gains in the liquidity efficiency where the length of DPOs is met without ruining supplier satisfaction or delivery schedule. The comparative analysis of the models of discounting indicates that the dynamic discounting and supply chain financing approaches provide greater predictability of the cash-flow and cost reduction compared to the cases of the fixed terms. The results emphasize the strategic value of supplier portal that provide manufacturers with a data-driven channel to improve working-capital performance and increase resilience of long-term supply chain management.
References
Trautmann, L., & Lasch, R. (2020). Smart contracts in the context of procure-to-pay. In Smart and Sustainable Supply Chain and Logistics–Trends, Challenges, Methods and Best Practices: Volume 1 (pp. 3-23). Cham: Springer International Publishing.
Vachon, S., & Klassen, R. D. (2008). Environmental management and manufacturing performance: The role of collaboration in the supply chain. International journal of production economics, 111(2), 299-315.
Peltomaa, T. (2021). Implementing automated procure-to-pay: organizational change and organization design.
Vanjoki, V. (2013). Automated Purchase to Pay Process Value Modeling and Comparative Process Speeds.
Schulze, M., Schröder, M., Jilek, C., Albers, T., Maus, H., & Dengel, A. (2021, May). P2P-O: a purchase-to-pay ontology for enabling semantic invoices. In European Semantic Web Conference (pp. 647-663). Cham: Springer International Publishing.
Berg, G. (2020). Electronic invoicing: The first step towards digital B2B payment modernisation. Journal of Digital Banking, 4(4), 332-343.
Albert, M. G. (2020). Digitalization and Digital transformation in Finance Operations (Doctoral dissertation, Technische Universität Wien).
Bhagwat, R., & Sharma, M. K. (2007). Performance measurement of supply chain management: A balanced scorecard approach. Computers & industrial engineering, 53(1), 43-62.
Chia, A., Goh, M., & Hum, S. H. (2009). Performance measurement in supply chain entities: balanced scorecard perspective. Benchmarking: An International Journal, 16(5), 605-620.
Paquette, S., & Moffat, L. (2005). Corporate portals for supply chain collaboration. Journal of internet commerce, 4(3), 69-94.
Lin, C., Hung, H. C., Wu, J. Y., & Lin, B. (2002). A knowledge management architecture in collaborative supply chain. Journal of Computer Information Systems, 42(5), 83-94.
Bondar, S., Stjepandić, J., & Pfouga, A. (2018, June). Supplier Collaboration in Development of Product Platforms. In 2018 IEEE International Conference on Engineering, Technology and Innovation (ICE/ITMC) (pp. 1-7). IEEE.
Andres, B., Sanchis, R., & Poler, R. (2016). A cloud platform to support collaboration in supply networks. International Journal of Production Management and Engineering, 4(1), 5-13.
Ståhlström, M. (2021). Improving supplier relationship management with supplier portal.
Hedberg, N. (2020). Automated invoice processing with machine learning: Benefits, risks and technical feasibility.
Vazquez, X. H., Sartal, A., & Lozano-Lozano, L. M. (2016). Watch the working capital of tier-two suppliers: a financial perspective of supply chain collaboration in the automotive industry. Supply Chain Management: An International Journal, 21(3), 321-333.
Banker, R. D., Chang, H., Janakiraman, S. N., & Konstans, C. (2004). A balanced scorecard analysis of performance metrics. European journal of operational research, 154(2), 423-436.
So, S., & Sun, H. (2010). Supplier integration strategy for lean manufacturing adoption in electronic‐enabled supply chains. Supply Chain Management: An International Journal, 15(6), 474-487.
Lager, T., & Frishammar, J. (2010). Equipment supplier/user collaboration in the process industries: in search of enhanced operating performance. Journal of Manufacturing Technology Management, 21(6), 698-720.
Krause, D. R., Handfield, R. B., & Tyler, B. B. (2007). The relationships between supplier development, commitment, social capital accumulation and performance improvement. Journal of operations management, 25(2), 528-545.
Field, J. M., & Meile, L. C. (2008). Supplier relations and supply chain performance in financial services processes. International Journal of Operations & Production Management, 28(2), 185-206.
Downloads
Published
Issue
Section
License
Copyright (c) 2023 Ramesh Babu Potla (Author)

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
