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Transcepta Officially Announces Elimination of Network Fees to SuppliersAnalysis Indicates Network Fees Negatively Impact P2P Projects (February 16, 2012)
ALISO VIEJO, CA -- (Marketwire) -- 02/16/12 -- Transcepta, the leading global procure-to-pay (P2P) network, today announced its initiative to offer the Transcepta Network free of charge to suppliers regardless of size, volume, or type of transaction. This approach contrasts with other networks that continue to place hurdles to adoption in front of suppliers, requiring suppliers to pay fees, use time consuming manual portals, and participate in data mapping projects that require IT resources. Capitalizing on the most innovative and efficient supplier on-boarding technology and process in the industry, Transcepta eliminates supplier fees without increasing costs to buying organizations.
Transcepta, the industry's perennial leader in supplier adoption rates, set out to improve on this benchmark in 2010 when it began testing the "free supplier" model. Customers enthusiastically embraced the change. Making the Transcepta Network free to suppliers enabled customers to connect, transact, and collaborate electronically with virtually all their suppliers and at lower overall cost.
Transcepta customer success proves:
1. Offering free network membership to all suppliers drives adoption. Results showed when network fees were eliminated, customers enjoyed supplier adoption rates significantly greater than when fees were charged.
2. Network fees negatively impact implementation costs. When suppliers were charged network fees, they often balked at enrolling in the network and those suppliers that did sign up "charged back" their fees to the customer in many cases. This means that customers who allow their networks to impose fees on suppliers typically fall short of their projects' potential for increased productivity and experience higher costs for the goods and services they procure.
3. Network fees cause friction between suppliers and Procurement and Accounts Payable. During on-boarding, suppliers required to pay network fees resisted the initiative, took longer to enroll, and contacted the customer's Procurement and Accounts Payable staffs with queries, requiring costly, time-consuming follow-up. However, suppliers overwhelmingly accepted the offer to join the network on the first on-boarding attempt when they received free membership and were enrolled by Transcepta on-boarding specialists.
Michelle Wesche of Power Supply Industries expresses the common supplier sentiment over free network membership, saying "When our customer asked us to join Transcepta, we did because it was free and took just a few minutes of our time to get connected."
Harris Corporation selected Transcepta over other P2P networks in part because Transcepta does not charge suppliers any fees to participate. "The Transcepta Network was the right choice for Harris. Making the service free to all suppliers and giving suppliers the option to connect from their existing systems gave us the opportunity to maximize supplier adoption," said Tammy Ingwersen, Harris procure-to-pay program manager.
Transcepta is the leading global procure-to-pay (P2P) network. Transcepta enrolls suppliers, employing a best practice approach, and connects them to customers around the world. Customers collaborate and transact electronically to reduce costs, communicate more efficiently, and make business relationships more productive. Since 2005, Transcepta has connected tens of thousands of trading partners and processed millions of transactions to become the fastest growing network. For details, visit: Transcepta.com
Transcepta is a trademark of Transcepta LLC. Other names may be trademarks of their respective owners.
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