Last week on the blog we talked about how regulation and new technologies, such as intelligent data capture, are helping large companies to pay small suppliers on time. In turn, this is enabling large companies to move towards an automated, paperless future. This is good news for both the environment and for company bottom lines.
Empowering Businesses with Data
At CloudTrade, we know that technology is improving the quality and accuracy of data capture across the payments cycle. We’re proud of the way our technology sits at the heart of this evolution, acting as an enabler by allowing our customers to capture granular data that they’re using to make better-informed business decisions.
When capturing data, being able to go deeper than header level has a host of benefits, especially when it comes to processing and paying invoices. Streamlining this process benefits both the company being paid and the company making the payment.
Want to understand how we can help with data capture?
A Stable Base to Build
The primary benefit is obvious – electronically processing invoices is more cost efficient than relying on a human, who should be focusing their intellect and time on higher value tasks. This is especially true in the public sector, where budgets are being squeezed, meaning that stable cash flow within the supplier base is critical to the ongoing sustainability of the sector. Efficient invoice processing can save public sector entities money by replacing manual processes with technology.
Across local government, councils are increasingly recognising the potential of emerging technologies to transform their back-office functions and change working practices to deliver real value. Early payment programmes, provided by CloudTrade partner, Oxygen Finance, demonstrate how effective use of technology, alongside process and change consultancy, can help organisations drive efficiencies within existing purchase to pay (P2P) processes, delivering multiple benefits for both buyer and supplier
There are two ways to make money
So, how does this process work? Using a combination of technology, process re-engineering and supplier on-boarding, Oxygen enables local authorities to pay their suppliers early. An early payment rebate is agreed with the supplier, relating to the amount of acceleration achieved on each invoice, creating an income stream for the council from its existing spend and injecting liquidity directly into the supply chain.
said Marianne Betts, Oxygen Finance’s Deputy CEO, highlighting how their technology is helping customers on a number of different levels.
“Suppliers who choose to join our early payment programmes benefit from improved cashflow, freeing credit lines for investment in growing and developing their business. The robust digital audit trail that tracks invoice payment means that suppliers spend less time chasing payments too,”
“At the same time, the buying organisation improves relationships with its suppliers, as well as securing the supply chain and gaining improved operational effectiveness from digitising back-office functions and optimising P2P processes.”
Marianne also highlighted the crucial role that CloudTrade’s technology plays in this process:
“CloudTrade facilitates the rapid and accurate capture of invoice detail at line level which maximises the efficiencies available.”
In business, there are two primary ways to make money. You can either save it by reducing costs or you can earn it by being paid earnings, payments or rebates. We’re proud to say that our work at CloudTrade alongside our partner, Oxygen Finance, is helping our customers to do both.