The 3 Most Common Causes (and Solutions) to Frictional Relationships
Avoidance of pain. It’s a critical motivating factor in both life and business. Yet, many of us continue to attract—or at least accept—relationships (personal and professional) that exacerbate friction and deplete us of resources and our ability to reach our potential.
Perhaps you’ll recognize some of the most common causes of frictional supply chain relationships, outlined below. And while acknowledging a problem is the first step in eliminating it, we’ve provided you the strategies to overcome these problems as well.
It happens. Sometimes invoices are unpaid because of mistakes or errors that hold up the invoice in the AP process. But if the Supplier is never made aware of the problem, the delayed invoice is, in effect, “invisible” and the delays can continue and cause additional problems down the supply chain.
Implementing an end-to-end e-invoicing system can eliminate these delays because any problems are transparent and visible to both Suppliers and Buyers. Errors can be remedied earlier in the process, ensuring Suppliers are paid and the delivery of goods and services is uninterrupted.
Yes, fraud is a strong word. Yet, over half of UK companies surveyed in 2016 viewed it as the biggest threat to their business—even more than losing a major contract, or competitor activities.
Implementing a comprehensive AP policy to vet all Suppliers as legitimate vendors is key to mitigating fraudulent transactions in your supply chain. Better yet, an e-invoicing system that requires invoices to be submitted through the platform ensures their legitimacy.
Businesses and specific offices change locations. Staff members, AP offices, and email addresses often change as well. The ensuing misdirection of important information to the wrong place can cause headaches—or chaos.
To ensure that all relevant departments, email addresses, staff and business contacts, etc. are up-to date, record all of this information in a single master supplier file. Better still, an e-invoicing system can ensure that addresses are consistent and validated against POs.
To see all 8 of the most common causes of frictional business relationships (and their solutions) please download our informative eBook: 8 Ways to Deal With the Friction in Your Relationships.