Case Study: How a Retailer Unlocked Cash Flow from their Supply Chain

Saving Retail Margins – How to Monetize AP Drive Rebate and Incentive Cash Flow

Buyer Initiated Payments (BIP) Reduces Check Expense and Generate Rebates Rapidly

THE CHALLENGE

Grocery and general merchandise retailers depend heavily on supply chain efficiency to keep cash flowing and generate margins. One of the largest supermarket and general retail chains in the U.S. wanted to eliminate the cost of issuing, delivering and managing paper checks, maximize the automation of their process across procurement and integrate their accounts payable activities.

THE SOLUTION

Priority Commercial Payments implemented a custom supplier campaign on the CPX Platform to integrate payables and maximize the automation of their AP process from procurement and to payment.  While traditional programs only reach a small segment of suppliers, the CPX integrated Payables solution facilitates flexible payment processing that supports multiple payment options from a single payment instruction file (PIF) and easy to use platform – allowing customers the ability to reach 100% AP automation and full payments integration. 

Payment options include:

• ACH+ (Flat Basis Point Fee)
• Virtual Card
• CPX Direct 
• ACH
• Dynamic Discounting
• Proxy Pay
• Check Processing
• Wire

Results:

• BIP processing volume per month: $5 million
• Checks Converted to ePayments: 6,600
• Suppliers Enrolled in BIP Program: 542
• Annual Rebates: $600,000
• Annual Check Expense Savings: $80,000

The chain has reduced paper checks and administrative costs while generating rebates, value that continues to grow — and is targeted to double — within the next 12 months. 

They achieved these volumes rapidly by engaging Priority Commercial Payment’s custom Commercial Payments Supplier Campaign on the CPX platform.

As an added benefit, BIP provided efficiencies to their supplier partners by automating the processing of transactions while providing them with payment acceleration.  Building relationships with suppliers through win/win payment methods provides a competitive advantage to the retailer and supports growth in the future. Download the case study.

Contact us to discover your potential to monetize your accounts payable with an AP spend analysis, or watch this short video that explains how integrated payables work.