As treasury organizations look to drive greater efficiency and cost savings through the optimization of their payables function, itís important to take advantage of industry best practices.
- Align corporate goals and objectives with automation goals in order to ensure a successful outcome.
- Rely on your bank to conduct a detailed supplier analysis and build an electronic payments strategy unique to the specific needs of your business model.
- Obtain buy-in from all company stakeholders, such as senior management, procurement, accounts payable, treasury, etc.
- Implement a companywide mandate for using purchasing cards at every opportunity.
- Issue virtual cards with card level transaction spend limits to reduce the incidence of fraud.
- Optimize the use of performance, audit and supplier reporting to gain visibility into the efficiency and effectiveness of supply chain business relationships.
- Utilize tailored supplier communications to create a positive supplier experience.
- Customize solutions by division to address different buying systems and supplier needs.
Payables optimization offers significant benefits for both buyer and suppliers, making this an extremely appealing treasury objective for organizations of all sizes and across most industries. Fifth Third Bank, serving in a consultative role, can help you evaluate your business needs, as well as those of your suppliers, so you can find the right solutions that will maximize treasury efficiency and free up critically important working capital.