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9/8/2017 Proprietary & Confidential Presentation Prepared for:
Unlocking the Strategic Value
in Electronic Payments
Proprietary & Confidential 2
How CFOs are unlocking strategic value with Payment Optimization
“A 5% reduction in operating costs can have
the same impact as a 30% increase in sales.” – Gartner Group
Commercial Payments
One-Card | EMV
Expense Reporting
Invoice Automation
Procure–to-Pay
ERP Integration
Outsourced Payment
Execution
File Integration
Reconciliation
Optimized Payments
Electronic Settlements
Discount Realization
Working capital
Supplier Conversion
Enhanced Reporting
and Analytics
Decision Support
Cloud based solutions
Mobile enabled
Proprietary & Confidential 3
• Monitor spending areas 56%
• Manage cash flow 41%
• Control unauthorized spending 39%
• Ensure compliance with corporate policies 33%
• Streamline expense administration 31%
• Provide convenient expense management tools for employees 29%
Financial executives are focused on these key areas:
CFO Research
4 Proprietary & Confidential
The Current AP Environment
$3.00-$5.00 Check processing cost
1. The Institute for Financial Operations 2014 AP Automation Study
2. Association for Financial Professionals,
2015 AFP Payments Fraud and Control Survey
2015 AFP Payments Cost Benchmarking Survey
of organizations still make more than half
their payments by check. 63%
62% of organizations were targets of payment
fraud 3/4 of those instances were checks.
80% of companies are transitioning their B2B payments
from paper checks to electronic payments.
10x Checks cost more than ACH or virtual card
payments to process
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Resistence to change from suppliers
Difficulty of integrating with financial system
No compelling reason to change
Risk management issues
Cost of new technology required
Difficulty changing payments processes
Risk of damaging supplier relationships
Lack of support from the top
Difficulty coordinating with multiple banks
Other
38%
36%
28%
25%
25%
21%
19%
13%
8%
6%
Leaving the Check Behind Overcoming barriers is critical to success
6 Proprietary & Confidential
88% Suppliers also desire electronic
remittance and want to automate
the remittance exchange.
The Institute of Financial Operations 2014 AP Automation Study
Top Accounts Receivables Pressure includes:
high DSO (Days Sales Outstanding) and
lack of visibility into receivables.
Primary Drivers for Suppliers
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A Supplier’s Perspective of Virtual Accounts
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• A “single-use” 16-digit virtual Mastercard
account number
• Issued for a specific dollar amount and
period of time
• Assign key data elements to associate
with the transaction
• Safe, secure payment alternative to
check or physical card
• Ideal for one-time vendor payments
iSimplify portal, Batch or API
Virtual Account | A Secure Alternative iSimplifyPayments
Proprietary & Confidential 9
Unlocking the Strategic Value in Electronic Payments
Integrated Payables
• Multiple forms of payments
(Virtual Account – SIP/BIP, ACH,
Check with Positive Pay)
• Single payment file
• Closed loop reconciliation
Managed Payables
• Multiple forms of payments
including EFT with Discount
Administration and Global
Payment Delivery
• Complete terms management
• Single payment file
• Full payment optimization
Virtual Account AP
• Cardless
• Single-use accounts
• Supplier initiated (SIP)
• Set Supplier cost
• Streamlined reconciliation
Scaled Optimization
Moderate Maximum Minimum
Advantages
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Middle Market | Payment / Settlement Flow
• Bank-agnostic framework
• Optimized payment
timing and type
• 100% electronic
processing Day One
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Goals and Business Initiatives
• Reduce cost
• Increase control & efficiency
• Flexible payment execution from a
bank agnostic framework
• Strategic supplier engagement
• Margin improvement from discounts
and working capital considerations
The benefit of optimized electronic payments
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A Strategic Approach to Supplier Enablement
Supplier
Segmentation
Supplier
Engagement
Supplier
Management
GOAL
Migrate 75% of the targeted suppliers
to electronic payments in 120 days
APPROACH
RESULTS
Cost Savings Process Improvements Revenue Contribution
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Vendor Engagement Plan
1. Scrub and segment Target Suppliers (volume, spend, type, terms,
Top 25, industry, cash forward, etc.)
2. Internal Communications (AP, Treasury, Procurement, Operations,
etc.)
3. Terms, discounts, payment types, and check run strategy 4. Obtain Cash Forward Reports
5. Set goals, timelines, and milestones 6. External Communications (Letters, emails, scripts, microsite)
1. Executive Letters (CFO) 2. Phone Campaign
3. Check Stuffers 4. Emails
5. Joint Strategic Calls 6. Microsite
1. Weekly Progress Reports (Goals, Enrolled, volume, type, etc.) 2. Monitor Payments – Follow-up Calls
3. Supplier feedback 4. Campaign Adjustments
5. Best Practices 6. Market trends
PLAN
DO
REVIEW
14 14 Proprietary & Confidential
In Summary:
Payment Optimization is a formula for you to reduce administrative cost, streamline
business processes and contribute to margin improvement.
• Move to electronic payments
• Manage your discretionary business expenses
• Achieve savings with optimized payment strategies
• Drive the change you want to see in the business