Articles

Retailers are operating in a world which is vastly different from a few years ago. Faced with competition from across the globe, those organisations who fail to adapt and meet the new challenges will find themselves out of touch and out of business. With an ever increasing growth in the power of the consumer via internet and mobile purchasing applications, organisations need to be resourceful and innovative when tracking how trade is affected and adapt to suit. Nowhere is this more important than in Accounts Payable.

By James Tucker, Global Director of Marketing, Financial Solutions, Ariba Inc.

In recent decades, companies have devoted significant time and resources to improving the efficiency and effectiveness of their accounts payable (AP) organisation. And in the current economic environment where cash is king and companies are looking for any and all ways to free up and maximise it, many are stepping up their efforts. But what do they need to succeed?

Relevant stakeholders – Projects with broad-based support are more likely to be approved than those that lack it. No matter where the AP function sits organisationally (i.e. part of shared services or part of the finance department), the ultimate success of an ePayables project will depend on support from relevant stakeholders. This may include procurement, finance/treasury, IT, line of business and last but certainly not least suppliers.

How purchase-to-pay automation can give closer control of payment cycles – and over 30%  annual return on capital.

If you were offered a way to get a 30+% annual return on your capital, and more efficient financial processes, would you be interested? I’m guessing yes, especially now as businesses are tempted to hold onto their cash for as long as possible. While UK firms have reduced the time it takes to settle their bills, according to Experian’s Late Payments Index, they are still paying 21 days after agreed terms. Everyone’s doing it, but it isn’t good for supplier relationships. Nor does it make the best financial sense – so why do firms persist with it?