When last we talked about Nipendo (Nipendo: A Not-So-Little Business Network with Big Dreams), it was a general discussion about the company and its growth trajectory. Today, I’d like to dive a bit deeper into Nipendo Supplier Cloud, the company’s flagship business network.
Business networks, as we’ve previously explained (What Every Executive Should Know about B2B Networks), are gaining momentum in this age that values speed, connectivity, and collaboration. Between President Obama’s SupplierPay initiative and the recent push in the United Kingdom to pay small suppliers faster, it’s no wonder that interest in speeding the procure-to-pay process has gained in importance.
Nipendo’s solution fits in the business network space with a focus on eInvoicing, and so far connects thousands of trading partners through their cloud-based platform, including big name customers such as HP, IBM, Motorola, and Teva. Companies large and small have signed onto Nipendo’s supplier cloud platform, which may have something to do with the software’s simplicity and Nipendo’s guarantee on the levels of eInvoicing automation each customer will achieve.
The Nipendo Supplier Cloud Formula
Nipendo focuses on three processes in their supplier cloud offering: (1) the PO process (2) the goods receipt process, and (3) invoicing. In each instance, Nipendo touts an advanced, but configurable, workflow.
Nipendo’s goal for each of the three processes is to enable an automated end-to-end process, allowing Nipendo to help many of its customers achieve a reported 90% straight-through processing rate for all invoices (well above the industry average of 27% as discussed in our recent research). One key reason Nipendo’s customers are able to achieve such high levels of straight-through processing is the invoice validation process that suppliers face before they can submit an invoice in the Nipendo solution. At the buyer’s discretion, supplier invoices can be validated in the Nipendo system against any number of documents including the PO, contract, and goods receipt. These validation parameters require suppliers to fix any invoice errors or issues before their invoices can be submitted, speeding the process on the buyer side once an invoice is received.
Nipendo’s solution works on a plug-and-play methodology somewhat akin to plugging a USB flash drive into your computer. The cloud-based system has standard integrations with the most common ERPs and supports supporting common file standards such as EDI and cXML, among others. There’s also a secure gateway in the Nipendo solution for managed file transfer, and a Cloud Printer application that allows suppliers to “print” a PDF invoice directly into the Nipendo platform. Nipendo’s management was quick to note that they can integrate with practically any back-end system.
Partner Strategy
One strategy Nipendo is using to drive growth and compete in and gain access to more deals is signing new partnerships with companies like Integrate Financial and SynerTrade to augment their current solution set. This partnership strategy aligns with the current market needs for more holistic solutions. The partnership strategy also aligns with Nipendo’s view of its network as a platform that can and will deliver third-party applications and services to its customers and their suppliers.
What’s Coming Next?
With regards to the Nipendo Supplier Cloud itself, CEO & Co-founder, Eyal Rosenberg said that the company plans to focus on extending its current solution set more broadly into P2P automation and will do so via the development of its own solutions and more strategic partnerships.
While Nipendo is a newer name in the U.S., they’re not a new entrant to the larger market, having begun in Israel in 2007. And, with its core solution and a strong track record with its customers in Israel, Nipendo has a great foundation that will help it advance and compete in both the business network and P2P solutions markets.
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