It may be hard to imagine a world without paper checks, but more and more companies are turning to automated digital payment solutions in order to drive cost reductions and optimize working capital
Last week, an article in Transport Topics stated that paper checks as invoice payments are still common for both trucking companies and 3PLs. But the article also noted that this traditional payment method is facing changes. The movement towards electronic payments has empowered AP departments to move from simply an operational role within organizations to offering strategic value to the entire company.
A cost center can be transformed to a profit center
Eliminating paper and creating more time for strategic positioning are two important results a company can realize through the implementation of an e-payment solution. An additional benefit will go straight to the bottom line; creating an additional revenue stream. That occurs through the use of virtual credit cards which enables customers to capture significant rebates that would otherwise be lost.
E-payments have also allowed customers working with a supply chain finance provider to create more advantageous payment schedules for themselves, which in turn gives them greater control and management of their working capital.
Teams can focus on higher value tasks
Implementing an e-payment system means there will be less manual tasks for teams, freeing them up to take on other roles and responsibilities to add value to their organizations. If a team isn’t as focused on payment processing, for example, they can instead concentrate on analytics and strategies to optimize working capital.
E-payments also strengthen relationships with vendors. The right e-payment solution makes the process completely electronic and automated on the payer side of the equation while providing the payee with multiple options to choose from (Virtual Card, ACH, Check) so they can choose an option that will allow them to maximize efficiency on their end.
Less paper means a better paper trail
This may seem obvious, but as e-payments continue to gain popularity within organizations, the use of paper will continue to decline. Reducing the amount of paper and manual processes is critical to streamlining operations. While the movement towards digitization may seem daunting at face value, once an organization has transitioned over to a digital and automated payment process, the time sacrificed to implement the new method will deliver an immediate return on investment.
Ironically, e-payment solutions leave a better “paper” trail than using actual paper for invoices and other transactions. This not only makes the process easier and more efficient, but provides better visibility and protection against fraud or theft.
Electronic payments may not be fully integrated into every company quite yet, but best in class companies are quickly moving in that direction. Companies that take advantage of a holistic e-payment solution stand to benefit in a deep way that will ultimately increase the value of their company.
See how e-payments can increase efficiency and give your staff the time it needs for more strategic endeavors.