GUIDE TO BATCH FILE UPLOAD
A step-by-step guide on how you to upload batch files on Billhop's easy-to-use platform. ...
Here are the facts. It takes around 6 to 18 months and between €50 to €70 to onboard a single supplier to your company’s Enterprise Resource Planning (ERP). Some companies have even reported onboarding costs of over €200. These disheartening figures are applicable across the board - even to one time, low spend vendors. Unsurprisingly, most enterprises view these transactions as more trouble than they’re worth and cannot justify dedicating their resources to properly managing them. Left unchecked, these purchases are left to accumulate and ultimately morph into a major pain point that becomes increasingly difficult to dismiss.
There is no catch-all term that perfectly defines tail end spend, also known as indirect spend or maverick spend. As with procurement, the tail spend for every organisation varies. With that said, a company’s tail spend is generally made up of 80% of transactions that cover only 20% of its total spend volume.
Essentially, tail end spend consists of many high volume, low spend suppliers. Due to the sheer amount of time, manpower and resources required to chase tail end spend, it often falls by the wayside as companies continue to prioritise their strategic spend. It thus comes as no surprise that 63.5% of all controllers cite accounts payable as a crucial area for improvement.
In recent years however, businesses have begun to view their much-neglected tail spend in a more favourable light. Instead of an unmanageable accounting nightmare, it is now seen as an opportunity, an untapped gold mine that when handled successfully, can drastically boost a company’s cash flow and result in increased Return on Investment (ROI) for the company.
A crucial reason for this shift in attitude can be attributed to the emergence of straight through processing payments companies like Billhop that can effectively tame the beast that is tail spend.
Billhop’s incorporation of proprietary technology into existing card payment rails elegantly caters to growing enterprises’ pressing need for alternative procurement processes - Processes distinct from their existing procedures that mainly targets strategic spend.
Billhop is an agnostic payment platform that allows companies of all sizes to pay any invoice and supplier with their preferred credit card.
With Billhop, you can pay all tail end suppliers, regardless of whether or not they accept credit card payments, without onboarding them to your ERP system. By the same token, your suppliers will not be required to make any changes to their existing receivable process as they will be paid by means of a regular bank transfer. For instance, a fortune 500 company that uses Billhop to pay its tail spend suppliers saw a 30% reduction in processing cost and had a net annual savings of €2 million. This was on top of the massive rewards and points that were racked up while charging such large purchases to their chosen credit card.
Yet another benefit of paying with credit cards is the extensive remittance data they provide, which is crucial when it comes to reconciliation and reporting. You will have the same level of control and transparency over payments made by credit card as you will over those in your ERP system without the hassle of having to onboard hundreds, if not thousands of suppliers.
With the considerable amount of time, effort and costs that can be saved by consolidating all tail spend into a single billing cycle, there is no denying that Billhop is the ultimate solution when it comes to tackling your company’s unruly tail spend.
Click here to learn more about how you can use Billhop to effectively manage your tail spend today!
