New program leverages Oildex’s industry-leading OpenInvoice platform to create a supply chain finance program that benefits operators and suppliers alike
DENVER, CO – Oildex, the leader in financial automation solutions for the oil and gas industry, today announced the availability of its Supply Chain Finance Program through its leading OpenInvoice® automated payables platform. The program is part of the Oildex Innovation Agenda to develop and deliver new solutions that provide tangible benefits to both operators and suppliers.
“We see a clear market need and a unique opportunity for Oildex to leverage our existing relationships with major operators already using our OpenInvoice platform, along with our extensive network of suppliers, to create a ‘win/win’ solution for everyone involved,” said Craig Charlton, CEO of Oildex.
OpenInvoice Supply Chain Finance is enabled through Cass Information Systems, a long-term strategic partner of Oildex. The program is simple: Cass Information Systems will pay suppliers quickly, less a competitive early pay discount, allowing the operator to maintain or even extend their payment terms to maximize working capital returns. In addition, there is an opportunity for the operator to also receive a financial rebate based on the transactions.
Charlton added, “With our Supply Chain Finance Program, operators get increased liquidity, better supplier relationships through faster payments, and a more stable supply chain. Plus, they open a new revenue stream by receiving a share of the discount given by the suppliers in the form of rebates. Suppliers get fast payment on their receivables, within 1-2 days of invoice approval, and quicker access to critical working capital that can be used to fund and expand their operations.”
The Oildex model has several clear advantages over existing offerings, such as early pay discount programs and Vcards. It is delivered on the same proven, secure OpenInvoice platform that many operators and suppliers currently use to process invoices and payments. In addition, it works with all major enterprise resource planning (ERP) and information management systems.
With more than 67,000 suppliers on its network, Oildex is in a unique position to partner with operators to promote the program and drive adoption within the supplier community, as well as offering single point of contact for all operator and supplier support requests, further easing the burden on all parties involved.
“In the end, we identified a program that makes sense for everyone in the industry,” added Charlton. “We realized we are the only company in a position to make it a success.”
About Cass Information Systems
Cass Information Systems, Inc. (NASDAQ: CASS) is a leading provider of integrated information and payment management solutions. Cass enables enterprises to achieve visibility, control and efficiency in their supply chains, communications networks, facilities and other operations. Disbursing over $50 billion annually on behalf of its clients, and with total assets of $1.6 billion, Cass is uniquely supported by Cass Commercial Bank. Founded in 1906 and a wholly owned subsidiary, Cass Bank provides sophisticated financial exchange services to the parent organization and its clients. Cass is part of the Russell 2000®.
Oildex is transforming the way the oil and gas industry connects, collaborates and automates. More than 250 operators, 67,000 service providers, dozens of financial institutions and millions of mineral rights owners use the Oildex Network to seamlessly and securely collaborate with their business partners, automate critical business processes, eliminate the high cost and errors associated with the handling of paper, and obtain access to key data to make more informed business decisions. Oildex is headquartered in Denver and has offices in Houston; Calgary; Austin; Fayetteville, Arkansas and Tennessee. Learn more about Oildex at http://www.oildex.com.