Vendor Payment solutions

New age Vendor Payment Solutions – Top 7 features your vendors want

While many businesses focus on customer retention, there is a growing awareness of the value of vendor retention. Companies are increasingly focusing on strengthening their relationships with vendors and other third parties to increase efficiency in the supply chain and ensure a smoother business process.

One thing that can really help strengthen these relationships is an efficient vendor payment process. If you’re looking to overhaul your existing vendor payment solutions or set up one for the first time, here are some things you must consider:

What are the vendor payment solutions in consideration?

Based on the size of the company and the nature of requirement, there are two types of vendor payment solutions on offer: 

  • SAP, Oracle, Concur which are used by the large enterprises with hundreds of data points and variables. This makes the system difficult to use and takes months of training before it can be implemented fully.
  • Fast and agile solutions like Karbon Payout meant for Startups & SMEs that optimize time and target ease of use.

How easy is it to integrate the system with existing platforms and applications?

It can be quite difficult to get the system running, especially if it is not something you’re familiar with. So it is important to check that the vendor is able to integrate their accounts with your portal with ease.

Also, make sure that you ask for references from other companies who have successfully integrated their portals into the vendor payment solutions that you are considering. If a company has no such references then chances are high that the solution of your choice will not provide any relevant integration services either.

What is the error rate when paying vendors compared to using manual processes?

It is logical to think that the vendor payment automation solution is more secure, faster and cheaper than the manual process. It also eliminates human error and reduces costs by taking overall accounting activities associated with managing payments.

How can you improve vendor satisfaction with this solution?

Vendor satisfaction plays a huge role in the way your business is run. This is because if you have a top vendor from whom you source your “cash cow” products, it is important that your vendor stays satisfied with you and your payment portal. Here are some tips on how to improve vendor satisfaction with the payment solution of your choice:

  • Provide a good user experience.
  • Make it easy to use.
  • Make it easy to integrate.
  • Provide good vendor service (e.g., phone support).
  • Provide good support (e.g., FAQs).
  • Provide good training (e.g., webinars).
  • Provide good documentation (e.g., release notes).
  • Provide a stable payment channel
  • Ability to report errors via chatbot

Are there different levels of AP automation available, or do you have to choose between a comprehensive one-stop solution or nothing at all?

AP (Accounts Payable) automation is defined as making use of software to automate the entire vendor invoicing process. This helps create a fast, cost effective and intelligent workflow. 

Startups and SMEs need to select a vendor payment portal that is completely automated. Making selective nodes automated in the workflow is only a requirement that large enterprises need. Over here the need is very simple – collect beneficiary details, transfer money to multiple vendors, generate invoices and send automatically.

How secure is the vendor payment solution?

The security of your data is paramount. The vendor payment solutions you are considering should be compliant with all protocols and have strong security measures in place to ensure that your information is safe.

If you’re not sure about whether your prospective vendor payment solution is secure, ask them for more details on their security measures before signing up with them. This is key as an unsecure platform can break your entire business.

Paying your vendors efficiently and in an effective manner is an integral part of your business.

Paying your vendors efficiently will help you to grow, keep your customers happy and most importantly ensure that the cash flow keeps moving in the right direction.

Vendor payment solutions are a great way to pay vendors online. They eliminate the need for sending checks via snail mail and make it much easier to update your records with new information on vendors or suppliers. 

7 Reasons why Karbon Payout is the choice of thousands of Indian Startups & SMEs

vendor payment solution basic features

This is why our customers love our Payout as their vendor payment solution – 

  1. Lean and fast – Karbon Payout saves time and allows startups & SMEs to focus on what truly matters – survival.
  2. Seamless integration with current workflows of the organization – this means you spend less time setting up and more time growing your business.
  3. Zero % error rate in making payments – payout links ensure that the beneficiary details are collected fast and accurately. Beneficiary addition has never been so simple before.
  4. Stable vendor payment solution – the best payment channel (NEFT, RTGS, IMPS) is selected based on intelligent algorithms that make this choice simple for you. 
  5. AP automation allows you to automate your entire vendor invoicing process and reduce costs of manual efforts. This allows you to have better control over your spend.
  6. Secure solution for vendor payments. Your data is yours and yours alone. We use the latest technology to ensure that our data remains protected at all times.
  7. Payout links are a revolutionary innovation which is going to disrupt the online payments industry. Send links to your vendors that let you capture the beneficiary details & auto-add them to our payment platform.

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Written By

Nikitha Reddy
Growth VP @ Karbon


FAQ

What is payout, and how does it work?
How to do bulk transfer or multiple payments in a single transaction ?
What is payout link and how does it work?
Can I give payout access to Member?
Can I make vendor payment using Karbon Card?

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