Often under looked, Accounts Payable is challenged with the task of ensuring suppliers are paid – but it is not simple. Accounts Payable, often owns the supplier master, but, as importantly, is: juggling federal regulations (e.g., tax compliance); managing payment schedules: tracking down bad banking information; dealing with ongoing communications with suppliers; and, navigating through multiple systems of record to identify the proper supplier to pay (and when).
HICX’s Accounts Payable Supplier Manager enables your organization to overcome and streamline the common hurdles, such as:
What, ideally, should trigger the need for action? It should be an event that activates the necessary resources as opposed to reliance on resources dedicated to constant oversight of all information exchanges. The goal is “management by exception.” However, few companies have implemented intelligent supplier management systems tied to their specific policies and unique environment.
You should be concerned about:
- The time to onboard a supplier – or update supplier information
- Managing a supplier’s tax and/or banking information
- Internal costs and duplication of effort required to create a complete supplier profile
- Your organization’s ability to segment and manage information collection dependent upon supplier-type and use
- Supplier off-boarding controls
Supplier activation requires involvement by many, but a single missing element (e.g. an NDA, tax or VAT information; banking information or payment terms) can slow or even stop the process. Because supply chains cannot be jeopardized over onboarding delays, or bottlenecks, companies often end up using manual efforts to oversee the onboarding process, or find ways to circumvent the process altogether.
Segregation of duties
You should be concerned about:
- Ensuring two, or more, competent and qualified individuals are involved in the approval of a supplier.
- Ensuring that all invoices match a supplier that has been preapproved.
How much effort is spent dealing with:
- Re-entering invoice information into multiple systems?
- Dealing with invoices that arrive in email, fax, mail, or other?
- Matching invoices with the proper record within supplier master?
- Correcting information supplied on an invoice, such as payment terms?
Payment discounts / rebates
- What is the value of payments that meet 2/10 Net 30? (hint: roughly 36% return rate on cash)
- What is the value of negotiated rebates, directly to the bottom line?
- What can extending payment terms do for your organization’s Working Capital?
Accounts Payable, and the Treasurer, are able to leverage the company’s resources strategically, yet many current systems handcuff their ability to leverage their own buying power.
What if a supplier could log onto the same system they: 1) manage ALL their supplier master data with (e.g., contacts, banking, tax info, etc.); 2) submit their invoices to; and, 3) check on the status of their invoice/payment?
HICX’s Accounts Payable Supplier Manager offers Accounts Payable the ability to manage both the onboarding process of new suppliers, as well as the ongoing management of the suppliers. The solution would enable you to:
- Segregate duties PRIOR to approval
- Collect supplier master data, as it specifically relates to your needs, such as:
- Supplier accounts receivable contacts, internal contacts, etc.
- Negotiated payment terms
- Applicable rebate volumes
- Banking information and validation (e.g., IBAN, SWIFT, ABA, etc.)
- Tax information and validation (e.g., SS#, W8/W9, VAT, etc.)
- Syndicate master data to all relevant ERP systems and/or invoice systems.
- Collect invoices from the supplier, with applicable meta data (applicable PO, etc.), etc.).
- Matching invoices to purchase orders, buyer, etc.
- Direct suppliers to a helpdesk so that they can track their own status.
- Gain visibility into volume discounts and/or rebates.
- Communicate with suppliers in mass, and gain agreement, to adjust payment terms.
- Communicate with suppliers in mass, and gain agreement, to accept and/or negotiate early payment discounts.