This release discusses a new service from Barclaycard that provides some additional capabilities around supply chain data. The service is called Barclaycard Payment Intelligence (BPI). As readers will know, supply chain management, working capital, cash cycle automation and other forms of digitalization have gained a high degree of corporate re-focus due to the pandemic.
In the case of AI, the prerequisite is capturing useful data, so without modernizing financial operations, using AI is a limited success proposition (or a non-starter). The cash cycle runs from procurement to reconciliation. In this case, Barclaycard is providing improved visibility and analytics into supply chains. Here’s more from the press release:
‘Barclaycard has launched Barclaycard Payment Intelligence (BPI), a new service which uses in-depth data analytics to provide procurement departments with the most comprehensive picture of their supply chain – driving cost efficiencies as result….The service combines hundreds of accounts payable data points with internal and third-party data. This helps customers develop the right payment solutions for their various suppliers in a fraction of the time it would take to do manually….The technology helps businesses catalogue their suppliers based on the number and value of transactions as well as their size, location, industry and whether early payment is likely to generate savings, to create a comprehensive overview of the entire supplier framework. For companies with thousands of suppliers – big and small – on their books, the new product can offer a significant time and cost saving for key decision makers.’
As Mercator Advisory Group has been saying for quite some time now, the procure-to-pay space has been undergoing a gradual convergence during the past several years, as former point solutions across the cycle are becoming more integrated through acquisitions, partnerships, and APIs. So as solidifying supply chains and creating more flexible and effective payment options is under critical review, the service should meet with some eager companies’ needs.
We have not yet received a briefing, but by its description, it would seem that Barclaycard uses machine learning and combines both client transactional data with 3rd party information to create best choice scenarios. In effect, it is least cost routing on steroids, with situational analytics to create intelligent choices.
‘Anna Porra, Commercial Strategy Director for Barclaycard, said: “Clunky and complex supplier payments processes mean that businesses of all sizes are losing out on time and money….“Barclaycard has looked to make use payments data to identify opportunities for improvements across the procure to pay process and drive actionable insights for both buyers and suppliers. Barclaycard Payment Intelligence is a new suite of tools that harness state-of-the-art data analytics and financial modelling to devise tailored, actionable solutions for our customers.’
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group