Tech Solutions for Payments Are Central to Optimizing Supply Chain
The global wholesale sector is expected to experience significant growth by the end of 2022, but late payments continue to be an issue that continually leads to cash flow problems. As supply chain needs have shifted, more companies have also turned to digital channels for sales, forever changing the landscape.
Distributors have to ensure they can provide the digitally-optimized services that businesses have come to expect by removing friction from the supply chain and from associated payment processes.
In the latest edition of The Treasurer’s Guide to AR Payment Optimization, PYMNTS took a look at how the payment needs of distributors are changing and why speed is at the intersection of acceptance and reconciliation of check payments. The report also examined how emerging digital payment tools are on the frontlines of client engagement and retention.
A survey of chief financial officers (CFOs) showed that 53% are on board with digitizing accounts receivable (AR) and accounts payable (AP) processes for the main reason of bringing about faster payments. The mindset aligns with shifting supply chain needs as businesses started relying more heavily on digital functions as more sales came from eCommerce channels.
The report also found that 37% of respondents pinpointed 20% of their annual revenue to digital buyers. Having a robust eCommerce strategy in complement to seamless digital payments is conducive to competitiveness.
The report examined the latest B2B and consumer payment trends and how businesses can keep pace with them. It also outlined which solutions and technologies are becoming key to companies’ payment optimization efforts.
Forecasts point to 80% of B2B payments being made digitally by 2025. The use of paper checks can bring about supply chain frictions that can end up compromising the ability of distributors to keep people engaged and lead to them being unsatisfied.
Learn more by downloading The Treasurer’s Guide to AR Payment Optimization Tracker, a PYMNTS and CheckAlt collaboration.