Supplier adoption is a key factor in determining the success of an electronic payments program. The more suppliers that embrace digital payments, the more efficient and cost-effective your payment process becomes. But what really motivates suppliers to make the switch?
To drive supplier adoption, think like a supplier. Here are four things suppliers wish every buyer knew when migrating to electronic payments—and how your organization can build stronger supplier relationships while improving efficiency.
1. “We Want to Get Paid Faster!”
Cash flow is the backbone of every business. Suppliers need cash to purchase raw materials, manufacture products, handle distribution, pay employees, and cover operating costs. This is why CFOs closely monitor Days Sales Outstanding (DSO)—the time it takes to collect receivables. Many suppliers are even willing to offer early payment discounts in exchange for faster payments.
How to Improve Supplier Cash Flow:
- Implement automated payment processing to eliminate delays.
- Offer early payment programs to take advantage of supplier discounts.
- Use a centralized payment platform like ACOM’s to streamline transactions and keep payments on schedule.
2. “Remittance data can be a huge headache!”
For suppliers, payment processing and reconciliation can be a time-consuming nightmare. Mismatched or missing remittance data creates inefficiencies, delaying cash application and increasing manual work.
The Problem:
- Incomplete or inaccurate remittance data leads to reconciliation delays.
- Many suppliers still manually key remittance information, increasing the risk of errors.
- Over 80% of suppliers are actively looking for ways to streamline the process.
How to Fix It:
- Provide detailed, structured remittance data with every payment.
- Automate remittance handling with electronic payments software to eliminate manual entry.
- Use a payment processing system like ACOM that seamlessly integrates remittance data, making reconciliation simple and error-free.
3. “We Want Payment Options!”
While 87% of businesses still receive paper checks, suppliers want flexibility. According to Receivable Savvy:
- 59% of suppliers prefer to be paid via ACH.
- 50% of businesses accept card payments to speed up cash flow.
How to Offer Flexible Payment Options:
- Choose an electronic payments solution that supports multiple payment methods, including ACH, virtual cards, and checks.
- Use a system that allows suppliers to select their preferred payment method and easily update preferences when needed.
- Implement automated payments that process invoices efficiently and meet supplier expectations.
Forget about one-size-fits-all payment programs—flexibility is the key to supplier adoption.
4. “We Don’t Want to Be Left Holding the Bag!”
Electronic payments simplify transactions, but suppliers need ongoing support when issues arise. Whether it’s updating banking information, changing payment preferences, or troubleshooting a technical issue, suppliers expect responsive support from their buyers.
Key Insight:
- 80% of suppliers want to increase the percentage of electronic payments they receive.
- However, they also want assurance that support is available when needed.
How to Provide the Best Supplier Support:
- Work with an electronic payments provider that offers dedicated supplier support.
- Ensure suppliers can easily update banking details without delays.
- Choose a system like ACOM’s Payment Processing Software, which includes concierge support for seamless payment transitions.
Make Supplier Payments Seamless with ACOM Systems
Developing an electronic payments program that prioritizes supplier needs is key to successful adoption. By offering faster payments, detailed remittance data, flexible payment options, and ongoing support, your business can streamline AP processes while strengthening supplier relationships.
Want to simplify supplier payments and enhance your AP workflows?
Contact ACOM Systems today to schedule a demo of our Payment Processing Software and see how automation can transform your payment strategy!
