The global wholesale industry is expected to see significant growth by the end of 2022, but late payments continue to be an issue that continually leads to cash flow issues. As supply chain needs have evolved, more companies have also turned to digital channels for sales, changing the landscape forever.
Distributors need to ensure they can deliver the digitally optimized services businesses expect by removing friction from the supply chain and associated payment processes.
In the latest edition of The Treasurer’s Guide to Optimizing AR Payments, PYMNTS examined how distributor payment needs are changing and why timeliness is at the intersection of accepting and reconciling check payments. The report also examined how emerging digital payment tools are at the forefront of customer engagement and retention.
A survey of chief financial officers (CFOs) showed that 53% agree with digitizing accounts receivable (AR) and accounts payable (AP) processes for the primary reason of speeding up payments. The mindset aligns with changing supply chain needs, as businesses began to rely more on digital functions as more sales came from e-commerce channels.
The report also found that 37% of respondents attributed 20% of their annual revenue to digital buyers. Having a robust e-commerce strategy alongside transparent digital payments is conducive to competitiveness.
The report looked at the latest B2B and consumer payment trends and how businesses can keep pace. He also highlighted the solutions and technologies that are becoming essential to companies’ payment optimization efforts.
Forecasts indicate that 80% of B2B payments will be made digitally by 2025. The use of paper checks can lead to friction in the supply chain that can end up compromising distributors’ ability to keep people engaged and make them dissatisfied.
Learn more by downloading the Treasurer’s Guide to Tracking AR Payment Optimization, a PYMNTS and CheckAlt collaboration.