Inworks

For any AP department planning to implement an electronic supplier payment settlement system, making an informed decision is crucial. Although the process requires careful comparison, it doesn’t need to be confusing or complicated.

Five Important Aspects to Consider

In general, an ePayables system that offers the best ROI excels in all of these five areas:

1. Rebate revenue generation
2. Low maintenance
3. Reduced operating costs
4. Reduced check loss
5. Reduced related expenses, including late fees and penalties, and mailing and paper costs

Supplier Participation is Key

The crucial factor in an ePayables system’s ability to generate income (rebate revenue), while reducing costs and expenses, is supplier enrollment. If an AP department increases electronic payments, it will lower costs in check processing, mailing and paper—and lower the risk of late fees. Moreover, the higher the supplier participation, the greater the potential for generating rebate income.

The ability to grow and maintain the network of participating suppliers is essential to a thriving ePayables initiative. Unfortunately, achieving and maintaining robust supplier enrollment is often the most time consuming and challenging step, involving hundreds of initial and follow up contacts to suppliers. Even with diligent outreach to suppliers, most AP departments achieve ePayables enrollment of only five to twelve percent of their total supply spend.

Achieving Maximum Participation

A well-designed and successful ePayables program removes the burden of supplier enrollment from the AP department, and maximizes participation by making the payment service provider responsible for all supplier onboarding and communication. It also provides suppliers a broad selection of electronic payment methods to choose from, allowing suppliers to select the payment method that best fits their needs. A program that includes these services not only saves the AP department significant administrative time, it also helps it realize all the other benefits of full supplier participation: reduced operating costs and related expenses, and significantly increased rebate income.

A good ePayables program maximizes participation by:

• Managing all supplier enrollment and communication
• Offering each supplier a broad choice of payment methods to best meet its needs
• Providing access to its network of providers already comfortable with electronic payments
• Assuring suppliers on-time or early payments by providing supply chain financing to AP departments

The Inworks Strategic AP® program, for example, manages all supplier contact, onboarding and ongoing communication, including payment inquires, etc. It encourages supplier participation by offering more electronic payment methods than any other AP program. It also maintains high supplier retention by providing real-time, online access to invoice and payment status. And it offers supply chain financing to its customers, enabling AP departments to increase their days cash-on-hand, avoid late payment penalties, and achieve discounts for early payments.

The Inworks Strategic AP Program achieves:

• 35 percent or higher supplier participation
• 3X the industry average for invoice rebate income
• Lowest client operating costs

Contact Information

Matthew Carlson
VP of Sales and Marketing
866.986.1684
mcarlson@inworks.com