Customer

Dairy Farmers of America

Company Type

Buyer

Industry

Food

Headquarters / Region

United States

Company Size

18,000+ employees

SAP Taulia Solution(s)

Dynamic Discounting

Dairy Farmers of America: How the Largest US Dairy Cooperative Transformed Its Accounts Payable Processes with SAP Taulia

DFA (Dairy Farmers of America) is the largest dairy cooperative in the United States and the fourth largest in the world. As a cooperative managing relationships with thousands of suppliers, DFA recognized the need to modernize its accounts payable process moving away from manual workflows toward a more efficient, automated system that could scale across its supplier network.

“So it's critical to look at a solution like Taulia, that is integrated in SAP because that is going to make it so much easier for your users if they don't have to learn something completely different."”

Linda Shipman, Corporate Accounting Manager, Dairy Farmers of America

Before: Challenges and opportunities


DFA had already implemented SAP as its enterprise resource planning system, however, the accounts payable team remained trapped in manual, exception-heavy processes that did not scale well. The organization wanted to move toward greater automation and efficiency in its AP operations, but any solution had to meet two critical requirements: it needed to be free (not cost suppliers to participate), and it needed to embed seamlessly with SAP rather than force users to adopt yet another disconnected system.

Why SAP Taulia

In April 2016, DFA selected SAP Taulia for its process automation capabilities and SAP-native solution.. The native integration meant that DFA’s internal users would not need to learn a completely separate system everything would work within the familiar SAP interface. The ability to onboard suppliers through a streamlined launch process, combined with automated payment via ACH and the later addition of dynamic discounting, gave DFA a comprehensive solution that suppliers could easily adopt.

Beginning in early 2017, DFA introduced dynamic discounting with flexible terms, offering suppliers an incentive to d take advantage of early payment opportunities.

After: Value driven results


Since transitioning to SAP Taulia, DFA has achieved strong adoption across its supplier base. The majority of invited suppliers enrolled onto the program, and a significant portion actively participate in the program regularly. The addition of dynamic discounting has provided suppliers with an additional incentive to engage more deeply with the program, unlocking early payment opportunities while helping DFA optimize its working capital. The transformation from paper to digital invoicing once considered a major undertaking has become a seamless part of how DFA does business with its suppliers today.

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