Supplier adoption goes a long way to determining the success of an electronic payments program.
One way to drive supplier adoption is to think like a supplier. Below are four things that suppliers wish every buyer knew when migrating to electronic payments.
“We want to get paid as fast as possible!”
Cash is required for the purchase of goods or raw materials, the manufacturing and distribution of finished products, sales and marketing activities, and salaries and business administration.
That’s why CFOs are so focused on Days Sales Outstanding (DSO) – a measure of how long it takes organizations to collect their receivables. Sixty-three percent of organizations surveyed by the Institute of Finance and Management (IOFM) say that decreasing receivables DSO is “important,” “very important,” or “imperative” to their accounts receivable department.
As a result, many suppliers are willing to exchange discounts on the amount-due on an invoice for earlier payment.
“Remittance data can be a huge headache!”
Accounts receivable encompasses payment processing and reconciliation of product and service purchases. Inefficiencies in matching payments and remittances and applying cash impacts overall receivables effectiveness, potentially leading to delays. Unfortunately, managing remittance data is a burden for most organizations.
For instance, data is frequently incomplete, inaccurate or missing. In fact, most suppliers must manually key most of the remittance data that they receive from customers.
As a result, over 80 percent of suppliers are looking for ways to streamline the handling of remittance data. Suppliers have a soft spot for customers who serve up robust remittance data with payments.
“We want payment options!”
Eighty-seven percent of organizations receive paper checks from customers, Receivable Savvy finds. But most businesses also receive payments via ACH and card. While 59 percent of organizations prefer to be paid by ACH, 50 percent of organizations accept payment via card, to get paid faster.
Forget about one-size-fits-all payments programs. Suppliers want buyers to have an electronic payments solution that parses an approved-invoice file to pay them the way they prefer to be paid.
“We don’t want to be left holding the bag!”
Eighty percent of suppliers want to increase the percentage of number of electronic payments that they receive, studies show.
But suppliers also want assurances that someone will support them when their contact information and banking account data changes, their payment preference changes, they need help with payment entry, or a technical issue arises.
Suppliers want their buyers to work with an electronic payment solutions provider that offers ongoing, concierge support to suppliers.
How to meet supplier demands for electronic payments
Developing an electronic payments program that addresses these supplier concerns will help ensure strong supplier adoption. Want more advice on driving exceptional supplier adoption?
Contact ACOM Solutions to arrange a no-obligation consultation with one of our payment experts.