ROI From Lower A/P Costs and Early Payment Discounts Drives Utility Industry
Interest in Payables Automation
Cinergy Corp. and FirstEnergy Corp., have selected the Pantellos eSettlement Network, an electronic payables system, to further automate their
procure-to-pay processes. These utilities chose the solution to lower accounts payable (A/P)
processing costs, reduce error rates, achieve better visibility and control over payment methods,
and strengthen supplier relationships.
Based on the ePayables solution from Xign Corporation, the Pantellos eSettlement Network is an
electronic invoice and payment service that helps utilities automate their financial settlement
processes. This Pantellos service creates a secure settlement network that enables utilities and
their suppliers to exchange electronic invoices and payments, capture more early payment
discounts, resolve disputes in real time and improve cash forecasting. The Pantellos eSettlement
Network also supports the MasterCard e-P3 electronic payment and information management
service, which helps utilities broaden their use of MasterCard Corporate Purchasing Card
programs to settle large-value transactions for direct materials and services. By combining this
eSettlement solution with other Pantellos services, utilities can realize significant improvements in
business performance from a fully automated procure-to-pay cycle.
Cinergy and FirstEnergy join fellow utility Pacific Gas & Electric (PG&E) in moving from paper to
electronic settlement. PG&E is currently using Xign's ePayables solution, the Xign Payment
Services Network, to automate its accounts payable processes.
"When we transact with suppliers through linked electronic networks, the cost savings can be
substantial," said Craig Weida, vice president, supply chain and administrative services at
Cinergy. "We are excited about the potential savings we can achieve in our financial settlement
processes through the Pantellos eSettlement Network."
"We've seen first-hand the positive results of implementing automated tools and other supply
chain services from Pantellos," said Brad Tobin, vice president of supply chain at FirstEnergy.
"Using the Pantellos eSettlement Network, we can manage our payables process as efficiently as
we manage other supply chain activities and expect to generate a significant reduction in overall
transaction costs."
An additional advantage of the Pantellos eSettlement service for supplier and buyer customers is
the shared supplier directory with more than 7,000 active suppliers. "Many suppliers in the
Pantellos eSettlement directory conduct business with Cinergy and FirstEnergy today," explained
Connor Neely, manager of financial services at Pantellos. "Cinergy, FirstEnergy and other
Pantellos buyer trading parties who adopt the Pantellos eSettlement Network can initiate
electronic transactions with these suppliers immediately; no enrollment is required, thereby,
saving suppliers time and money. In addition, the directory continues to expand by hundreds of
suppliers each month, increasing its value to our utility customers."
To find out how your company can participate in the Pantellos eSettlement Network as a buyer or supplier, please contact Connor Neely at Pantellos.
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