Happy partners = happy business. Today’s successful companies run lean and use a network of partners and suppliers at the ready to support their market innovations. To maintain a strong relationship and maximize the effort made by procurement teams to establish that relationship, streamlining supplier payment management services is key.

But managing supplier payments is an effort that is often neglected because of the old-world perception that efficiently paying vendors is not strategic.

When it does matter, however, companies often have to add staff to communicate with suppliers and partners. They email requests, collect tax forms, answer payment inquiries, and onboard payees with their banking information. Companies may build custom web portals to handle this process, but they’re often simplistic and don’t account for the nuances of each partner.

How to Manage Your Supplier Payments

The key to efficiently and effectively managing supplier payments is to streamline communications and interactions with the partners and suppliers. If the business deals with hundreds or thousands of payees, reaching out individually to each is problematic and not scalable. And it’s why most accounts payable organizations only reach out to suppliers if there’s an issue.

Instead of ad hoc communications or only reaching out to payees when there’s an issue, a better approach is to build a more holistic process that incorporates supplier on-boarding, tax form collection, emailing payment status, and identifying payment issues. The second is to encourage self-service for routine tasks such as data entry of banking details, thereby motivating suppliers to provide the right information when it is convenient for them.

It’s a part of a comprehensive approach to accounts payable, it’s important to streamline and automate as many supplier engagement processes as possible.

  • Put the onus on payees to provide the right banking information (including local bank account information for global remittance)
  • Collect W-9 forms, W-8 series forms, and VAT ID information digitally
  • Automatically send templated emails to communicate virtually any issue or status update
  • Provide a branded, secure web portal for partners to view payment history or update account information
  • Offer payees freedom to choose from multiple payment methods (e.g. wire transfer, ACH, paper check, etc.), payment in local currency, and payment thresholds
  • Offer early payment in exchange for modest discounts
Click Here to Learn How to Automate Supplier Management