The world of retail has always had its share of inconveniences, and dealing with cash, checks, and money orders to process your B2B payments is no exception. These payment procedures still occur in many independent retailers only because it's a process everyone is used to using.
With mobile technology, however, things are starting to change. More and more independent retailers are adopting a B2B mobile payments solution that provides a simpler way for them to pay for vendor deliveries right from their smartphone.
Here's how independent retailers are reaping the benefits from B2B mobile payments and how you can do the same. You'll find more advantages to using this system than you ever thought mobile technology could bring.
Streamlining Payments to DSD Vendors
Trying to pay your Direct Store Delivery (DSD) vendors using cash, checks or money orders can be a hassle. The time spent trying to pay for deliveries at the back door can take away from your time on the sales floor or front end interacting with your customers.
Independent retailers can now request their invoices be submitted electronically for approval using an app downloaded to a smartphone. The entire payment process can be completed in 3 easy steps:
1.) The payment request is received and a notification is sent to the retailer
2.) The retailer can process payment approval right from their phone. This process eliminates the need for payments via cash, checks and money order altogether.
3.) The retailer then receives a payment confirmation that is electronically archived
In addition, by using a mobile payments application with a complementary enterprise desktop solution, independent retailers can review all pending approvals and process single, batch, and total payments centrally. Suppliers and distributors can upload invoices in the same, centralized manner.
Paying Vendors Accurately and Timely
Mobile B2B payments solutions that offer electronic invoice submission can allow suppliers and distributors to make changes to delivery invoices on the fly - ensuring that the final invoice that is submitted to the retailer is 100% accurate. This means all payments are processed and approved in real-time and vendors get paid with full confidence in the accuracy of the retailer's invoice payment.
Retailers can deny payment of an invoice, provide the vendor with an explanation, and then track cancelled transactions all from within a single solution. This allows vendors to re-submit corrected invoices for approval, and eliminate the need for retailers to request credits for erroneous invoices that were paid. Faster error correction means faster payment processing for both trading partners.
Suppliers and distributors can use this same platform to track overdue retailer payments and send payment reminders to ensure their invoices are paid on time, and according to the established payment terms.
Reducing Risk of Loss, Theft and Collusion
The use of cash, check and money orders to pay vendor invoices can create unnecessary exposure to possible loss, theft and collusion for both independent retailers and their vendors. These methods can be subject to loss caused by mishandling, and also potential theft as these funds change hands. Suppliers and distributors often have additional risk as route drivers must carry payments with them from stop to stop before they make a deposit at the end of their day.
Mobile payments help you get away from relying on these riskier payment methods. Funds are safely sent from the retailer's bank account to the supplier or distributor without physical cash, checks or money orders changing hands.
Reducing Time Spent Reconciling Bills and Payments
It is likely that your accounting staff is reconciling payments and delivery invoices manually - a tedious process that can drain time and resources. While moving to electronic payments can help streamline the payment process, we have yet to explore how they can also streamline back office work.
Because electronic payments also include an online archive accessible via a secure web portal, conducting research and reconciliation becomes much more efficient. Advanced search and filter options allow retailer and vendor accounting departments to quickly and easily find invoice and payment records, confirm approvals or denials, and download summaries and detailed backup as needed.
Another factor to consider is evidence showing data entry mistakes cost up to $100 per record if corrections are not made. It is becoming increasingly important for independent retailers to select a mobile payments option that also provides an ability to handle vendor invoice exceptions without taking away from the efficiency of electronic invoicing and payments. Being able to identify, track and resolve errors using an automated platform ensures that all corrections are processed consistently.
Click here to contact us and learn more about our mobile payment app that allows independent retailers to simplify their B2B payments and reconciliation.