Program Overview
In this ADA Platform overview, key financial metrics are presented, starting with payment terms represented in days, including both contractual and actual terms from the provided spend file, and detailing potential discrepancies. The video further covers the total opportunity for maximizing payment terms, the cash flow opportunity, spend volume across various entities and metrics, and concludes by highlighting the functionality of the "Groups" box for harmonizing supplier payment terms and adding financing rates. Additionally, users can explore charts and visualizations offering insights into payment terms, opportunity, spend volume, concentration, and various other metrics, providing a comprehensive financial analysis on the platform.
Payment Terms and Days:
- The top left box in the ADA Platform's analytics provides information on payment terms and days, including both actual and contractual terms derived from the originally provided spend file.The possibility of actual and contractual terms being the same or different is explained, with adjustments made when contractual terms are not initially provided.
Buyer Leverage:
- Adjacent to the payment terms box, the original spend file showcases buyer leverage, categorized from low to high across the entire portfolio, indicating the strength of leverage with suppliers.
Spend Volume:
- The next box to the right focuses on spend volume, presenting the total spend volume matched by the ADA Platform and the average spend for each supplier.Notably, these figures reflect the selected currency, allowing users to observe changes when currency adjustments are made.
Buying Entities:
- Another box highlights the entities involved in buying, detailing the number of buying entities analyzed, total matched parents, suppliers, and spend lines.These metrics can vary based on factors such as buying entity, commodity, and more.
Details Box:
- The details box to the right provides specific information about buying entities, including their actual names, the countries where suppliers are located, and the currencies transacted on the spend file.
Charts and Visualizations:
- Users are encouraged to explore charts and visualizations further down the analytics section, offering customizable breakdowns of data.The charts can be tailored to different metrics, such as payment terms, spend concentration, supplier details, buying entities, commodities, supplier countries, credit rating, geo industry, procurement team, and supplier region.
Downloadable Charts:
- Users have the option to download the charts, enabling offline analysis or sharing with others.
Geo Visualization:
- Geo visualizations depict the locations of suppliers and buyers based on different metrics, providing insights into the geographical distribution of business activities.
Industry Analysis:
- The presentation includes insights into NAICS industries and geo visualization, showcasing where suppliers and buyers are based across various metrics.
Color-Coded Metric Representations:
- The industry's visual representation features color-coded metrics, transitioning from low to high, starting with blue and progressing to green.
Customizable Data Slicing:
- Users can customize the data presentation based on different groups, allowing for a nuanced exploration of metrics.
Rich Set of Metrics:
- Metrics available for analysis include payment terms, spend volume, spend concentration, registration of suppliers, buying entities, supplier countries, commodities, supplier company size, currency, credit rating, geo industry, procurement team, and supplier region.
0:00 - Starting with the box on the left, we see payment terms represented in days. We show both contractual and actual. These come from the provided spend file.
0:10 - They may be different because you may be paying some suppliers either earlier than agreed upon. Or some late payments sprinkled in there.
0:23 - Or you may not have provided the contractual payment terms in the original spend file, where in that case we automatically apply the actual payment terms as the contractual.
0:34 - We assume them to be the same. Next is the opportunity. is the total opportunity that add a recognized for you to maximize the payment term The expected payment terms are below the opportunity and this is what add expects you to be successful with after the negotiations are done with all the suppliers
0:56 - The next box is the cash flow opportunity both the overall opportunity and what the expected opportunity is in. These figures are in the currency which is selected in the top bar.
1:11 - A spend in entities, this is the spend volume, again reflected in the currency in the top bar along with what was matched when it comes to ultimate parents, suppliers and spend lines.
1:23 - Now there can be several spend lines for one supplier wherein you're trading with that supplier. There are different commodities, Now your last box to the right is your groups box.
1:31 - Over here you can see two things. Harmonization and financing. Harmonization you can allocate your suppliers into specific payment term buckets for their new payment terms.
1:42 - You can edit them here, add, subtract, change, whatever groups you want for the harmonization. Financing. You can add an unlimited amount of financing rates and you can base it based on the suppliers country or currency, etc.
1:55 - And you'll be able to see them here. Now if you scroll down you'll see different charts where you can slice and dice the data that's on the platform.
2:05 - you'll see here these are the actual payment terms but by buying entity but you can look at it by region, however you want.
2:11 - We also show payment terms opportunity, cash flow opportunity, the spend volume, spend concentration, the suppliers, the buyer entities, the supplier countries, commodities.
2:23 - These supplier company size, currencies, credit rating, geo visualization, industry procurement team, supplier region, and the nine boxes which we go over in another video if you need to know what the nine boxes are.
2:40 - The geo visualization, this is just a map of where your suppliers are and where you have higher and lower concentrations of suppliers around the globe.
2:48 - If you hover over you can see these are the actual payment terms but if you want to change at the spend volume we see here that that's out there.
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