KPMG wants to overhaul the financial supply chain between businesses and has chosen a partner to help do so.
An announcement issued Thursday (Dec. 10) said the financial advisory company is working with finance supply chain firm Taulia to collaborate on a solution that helps businesses improve supplier relations by fueling faster payments between companies.
KPMG will reportedly integrate Taulia’s supplier financing, eInvoicing and supplier management technology to streamline and automate the flow of financial data between buyers and suppliers. Doing so, the firms said, will improve transparency between the two parties, making it easier for suppliers to get paid and easing friction in the procure-to-pay process for buyers.
Each business has recently conducted research in the supplier payment arena. Taulia’s analysis found that nearly half of the suppliers surveyed for the report (47 percent) are paid late; KPMG, meanwhile, revealed that less than 30 percent of corporate buyers offer a supply chain finance program.
Collectively, the companies said, this research suggests that suppliers are stuck without payment and no way to access working capital from buyers while invoices remain outstanding.
[bctt tweet=”Suppliers are stuck without payment or a way to access working capital from buyers.”]
“Jointly, our studies demonstrate the disconnect that exists in today’s financial supply chains and that effective supply chain management helps organizations accelerate corporate growth strategies, increase operational efficiency and offer new and differentiated value to their suppliers,” said KPMG Supply Chain and Procurement Practice Leader in the Americas Samir Khushalani in a statement.
Earlier this year Taulia announced a $15 million financing round following a $40 million Series D round completed only months before.
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