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Nipendo’s Milestone Challenges E-invoicing Establishment

Written By: Predrag Jakovljevic
Published On: January 20 2014

Nipendo, a fledgling provider of a cloud buyer-supplier collaboration platform, recently announced a new milestone marking the rapid adoption of its Supplier Cloud platform by buyer and supplier organizations, exceeding one million automated procure-to-pay (P2P) transactions per month. With streamlined onboarding and a range of free to low-cost supplier connectivity options, buyer organizations working with Nipendo are reportedly reaching impressive supplier adoption rates.
 
Nipendo has a pricing model that is based on the value delivered to the buyer organization. Users pay only for invoices that have been automatically (without human intervention) processed by Nipendo straight through to their enterprise resource planning (ERP) system—meaning that they have been validated and approved for payment based on the business rules configured by the buyer. It is a per-transaction fee, not a percentage of the invoice.
 
The reason Nipendo is able to offer this pricing model is because the vendor has a proven track record of consistently delivering more than 90 percent straight through processing (STP) of supplier invoices to ERP systems (i.e., enabling not just a paperless but also an errorless and effortless process). Some examples can be seen in the company’s earlier press releases here and here.
 
Nipendo also guarantees seamless interoperability with existing systems—including electronic data interchange (EDI), supplier network, and e-invoicing. This should allow enterprises to leverage their existing implementations and extend fully automated electronic procurement and invoicing to their entire supplier ecosystem.
 
Ariba remains the supplier-buyer network leader. Pretty much every company Nipendo talks to has already implemented Ariba, and thus is counted as “connected.” But many of these companies typically have only a fraction of their purchasing running through Ariba Network. Most of it is not straight-through processed to SAP or other ERP systems, and the level of automated touch-free processing is typically very low.
 
Ariba needs to do more with regard to smart invoicing or the specialist startups like Nipendo will continue to chip away at its customers. The point here is that smaller specialist vendors like Nipendo, Pagero, and TradeShift can over time challenge the supplier networks and P2P supremacy of Ariba, OB10, Coupa, Hubwoo, and others if they don’t do something to counteract the compelling value prop that the new players are offering.
 
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