AMERICAS FINANCE
Some companies may choose to dismiss these monetary charges as overhead or ‘just the cost of doing business’. Yet, there are other side effects that businesses cannot ignore. Failed payments can cause irremediable supply-chain disruptions. For example, imagine a major consumer retailer places a bulk order for shopping carts before a new store opening. Imagine that the payment failed, but no one discovered the transaction was incomplete until the night before the grand opening. The next day, there are no shopping carts for customers. Such a disaster would significantly damage the retailer’s relationship with its cart vendor as well as the location’s reputation with its customers.
Corporations should follow two best practice steps to become more equipped to handle the challenges of payments processing:
Most importantly, companies need to recognise that establishing global relationships that depend on accurate payments comes with high reputational risk.
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Businesses of all sizes must strive towards fast, timely payments as a standard. As customers (as well as vendors, suppliers, and contractors) are often unware of the difficulties involved in processing payments, a history of failed payments can lead them to doubt a company’s operational efficiency as well as its ability to deliver on its promises in other areas. Best practice steps to payment success Despite the numerous challenges discussed, ensuring accurate, timely payments can be simple. By investing in proper data management systems and implementing standardised protocols for payment processing, companies can significantly mitigate the risk of bearing heavy financial and reputational costs.
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Improve the company’s payments data. This means understanding the types of data required and creating a standardised method of organising existing data and collecting new information. Companies should also draft procedures for conducting research and repairs, so as to save both time and money. With these standards in place, businesses will be far more prepared to face the myriad of challenges that exist in the payments arena.
Sean Norris Executive Vice President EMEA & APAC Accuity
Integrate the data into an Enterprise Resource Planning (ERP) system and automate the payment process. Smooth integration and full automation will enable faster payments and streamline the onboarding process for new customers, vendors, suppliers, and contractors. Success in this area will provide businesses with the groundwork to build lasting relationships.
By overcoming the obstacles, businesses will be able to enter new geographies and feel confident that they have the ability to successfully complete transactions with any regional counterparty.
Meredith Wisniewski Portfolio Marketing Manager Accuity
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* In early 2017, Accuity conducted a survey study to investigate the priorities, goals, and pressing challenges of Multinational Corporations (MNCs) in the realm of payments. Researchers canvassed 95 senior professionals from the corporate sector—mainly Treasurers and Chief Financial Officers (CFOs)—and discovered a common intent among corporate leaders to bring their businesses abroad.
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