A/P Series Part 5: The Highest and Best Use – Consolidate Payments

by Feb 26, 2019A/P Series, Accounts Payable, Supply Chain Finance

“Quantity has a quality all its own.” Joseph Stalin is credited with saying this; and, unfortunately for his soldiers and subjects, he was not talking about the number of suppliers he was paying. And, while this strategy may be an advantage (albeit, a grisly one) in a war of attrition, it is not one a company wants to adopt to maximize the efficiency and effectiveness of its A/P department and working capital. In the world of making payments to suppliers, less is definitely more. One big advantage your clients will enjoy when using an ArtisPay Supply Chain Finance program is that they transfer the burden of paying some or all of their suppliers to you, their bank or lender.

Let’s look at how transferring the burden of paying their suppliers to their bank or lender results in a cascading effect of benefits to your client. When your clients use ArtisPay, their suppliers have full visibility and control of their approved invoices. This results in a drastic reduction or elimination of suppliers calling your client (their buyer) for information on their invoices and requesting payment. That is just the beginning, think of the cost, complexity, reconciliations and time saved by your client when they do not have to manage their payments. Essentially, what utilizing an ArtisPay Supply Chain Finance program does is remove the distractions – for both buyers and suppliers – that are created by awkward transaction processing and financing. Distractions of this nature pry management from its focus on customers and strategy – more than most realize.  Additionally, the stress of making administrative functions work takes the leaders’ minds off the prize. When you make all of that flow, the leaders on both sides can focus on the strategic initiatives that drive success.

Adding a bank or lender and an ArtisPay Supply Chain Finance program to a buyer and supplier equation turns an awkward transaction process into a sophisticated and smooth process. Banks and lenders are experts in payment processing and can now offer this expert service at no cost to their clients, the buyers. Buyers and suppliers now have less distractions and more time to focus on their business – their expertise.

Joseph Stalin made up for his lack of technology and sophistication with sheer volume of his greatest resource – people – but, using his soldiers as cannon fodder was not the highest and best use of this resource. While your clients have people processing payments, is that the highest and best use of their time? Definitely not, especially when you consider how an ArtisPay Supply Chain Finance program gives your clients technology and sophistication, at no cost, allowing them to focus on strategic initiatives rather than administrative cost center items. Don’t let your clients marginalize their resources, give them the highest and best use of their time, give them ArtisPay – and let the experts do their jobs.