The business world is in the middle of a massive wave of digitalization. Old, manual, in-person processes are being automated across the board. These changes reduce costs and improve efficiency, specifically when it comes to the customer/business cash cycle. The proof is in the pudding: despite -3.4% U.S. GDP during the COVID-afflicted year of 2020, electronic B2B sales saw 7.4% increases over the past two years. Moreover, automated order-to-cash (O2C) processes directly led to 15-30% savings for participating companies and their customers. Rather than fight progress, businesses should seize the opportunity to add embedded B2B payments to their infrastructure.
Advantages of embracing digitalization
There are myriad benefits to automating O2C processes, including the following:
- Consistent and accurate data tracking
- Higher chance of on-time payments
- Easily available working capital
- Opportunity to explore modern technology
- Improved customer satisfaction
- Greater brand loyalty
All of these positive effects are interconnected and reinforce one another. Moreover, the move towards digitalization is not just a luxury, it is becoming a necessity. The COVID-19 pandemic forced people out of the office. A return to in-person operations is slow in coming, and in some cases no longer desirable. Any processes that can’t move to an online space are doomed to either become relics or overcomplicate business operations with disparate expenditures of time, energy, and resources.
Challenges of adopting automation
Several obstacles may get in the way of companies making the move to digitalized financial processes:
- Corporate inertia
- Misperceiving industry trends
- Issues with scalability
- Complex/multiple invoice management
- Lack of available funds
- Difficulty adapting to a larger market
Some of the problems that impede progress towards automated processes can be overcome with a change in attitude or some basic consulting, but the larger issues will need to be addressed with the sustained help of professionals. Digitalization brings access to a significantly expanded field of potential customers and almost universally ensures that businesses can grow beyond what was otherwise physically possible. However, smaller businesses may struggle to locate the funds to support such rapid growth, whereas larger businesses might require more up-front work to update widespread pre-existing systems.
Evaluating priorities and fostering trust
The most important question for companies to ask themselves is, Where should we spend our energy, and what areas are in the greatest need of outside help? Implementing changes can be a big risk, and so can outsourcing certain tasks to new partnerships. However, building trust in reliable third-party providers can be the smartest way to prepare for overwhelming yet ultimately beneficial renovations. Regular self-assessment and the incorporation of a growth mindset will allow companies to make a pivotal leap forward.
To learn more about how B2B embedded payments can fix the broken order-to-cash process and make it a business driver, and to learn from the practical wisdom of experts in the field, consider reading TreviPay’s whitepaper.
Access TreviPay’s whitepaper, Embedded B2B Payments Are Advancing the Order-to-Cash Process, by filling out the form below.
