Negotiation Strategy: Buyer Standard
In this instructional video, the speaker explains the buyer standard payment term negotiation strategy on the ADA Platform, covering the available strategy, its description, and the associated cash flow opportunity, emphasizing the enabling/disabling of the strategy in the setup module and demonstrating how to set up buyer standard groups with conditions based on factors such as credit rating, region, and payment terms.
Understanding Buyer Standard Payment Term Strategy:
- The video introduces the concept of the buyer standard payment term negotiation strategy.
Exploring Available Strategy:
- Describes the last available payment term strategy for the supplier as the buyer standard.
- Clicking on the strategy reveals a description and the potential cash flow opportunity linked to achieving a 90-day extension, representing a 30-day increase for the supplier.
Enabling/Disabling Strategies:
- Explains the strategy's status as enabled and how it would be shown differently if disabled or unavailable.
- Emphasizes that disabled buyer standard strategies can be enabled through the setup module on the ADA Platform.
Navigating to Setup Module:
- Guides users on navigating to the setup module on the left-hand side of the ADA Platform.
Enabling Buyer Standard Strategy:
- Instructs users to find and enable the buyer standard strategy if it is disabled, ensuring it appears in the available strategies.
Setting Buyer Standard Group:
- Explains the importance of setting a buyer standard group and its conditions.
- Demonstrates an example of an existing group with conditions, such as a credit rating requirement.
Adding Additional Buyer Standard Groups:
- Guides users on adding new buyer standard groups.
- Provides an example of creating a second group with conditions based on payment terms and region (Africa).
Conditions for Buyer Standard Groups:
- Shows how conditions can vary, such as credit rating, region, and payment terms.
- Introduces the process of adding conditions, like specifying a region (e.g., Africa) or setting payment term limits.
Saving and Recalculating:
- Instructs users to save the added groups and conditions.
- Explains that the platform will recalculate for suppliers based on the new conditions.
Applying Conditions to Buyer Standard:
- Highlights that the set conditions will now apply to any supplier categorized as buyer standard.
Conclusion:
- Concludes by summarizing the steps to enable buyer standard, set up groups, and apply conditions, emphasizing the customization options for payment term negotiation strategies.
0:01 - In this video, going to cover what is the buyer standard payment term negotiation strategy. Now we'll see. Here the last available payment term strategy for the supplier is buyer standard When we click on this we see a description of the strategy along with what the cash flow opportunity would be if
0:22 - we were to achieve the 90 day extension which is shown in this example That represents an increase of 30 days for the supplier We see here that this strategy is enabled If it was disabled it would not be shown under the available
0:40 - It'd be shown under disabled or unavailable strategies If the buyer standard strategy is disabled and appearing down here It must be enabled through the setup module on the ADA Platform I will now go into it and show you how to do that so the first thing you want to do is exit out of the
0:58 - supplier card you want to navigate down to the setup module on the left hand side once in here Okay. You'll find buyer standard if it is disabled this will be grayed out and off so we want to enable this and make sure it's red next thing we need to do is set your buyer standard group when you go to buyer
1:21 - standard group we already have one set because we saw that in the example of 90 days now this group named group one had conditions on it The supplier had to be rated triple B plus or lower if the supplier had a credit rating higher than that this strategy would not be available for that supply let's
1:41 - go into another example of let's add a second group for buyer standard come down to add group this is my name group 2 by default you can change that there lets say these are 75 days for this buyer standard group and the condition of the conditions for this instead of credit rating we want to add it for
2:00 - the region go up here we find region and we want to apply this to any supplier that's located within Africa so we can type in Africa and all the regions within Africa populate we want all of these check all and then make sure to hit save in the bottom right say we want a third group as well so we added
2:23 - group this is group three make this one last example we'll show you payment terms . . . As a condition for this buyer standard group and any supplier that's being paid in one day or less we want to move to at least five days so we say less than or equal to one and you can add another condition and then
2:43 - you want to hit save and then we can save all of these continue and it will recalculate for the suppliers and now these conditions will apply to any supplier that falls into this that is buyer standard.
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