Simplification of the payment process to suppliers


The supply manager of a large mining company faced a problem as regards the payment to his SME (small and medium-sized enterprise) suppliers on time.

critical-issueCRITICAL ISSUE

The problem was that the SME suppliers continually complained about lack of compliance with the stipulated payment terms, affecting the relationship with those suppliers.


The main problems in the payment process to suppliers were related to the ignorance as regards the company’s contact point for enquiries. This, among other situations, caused the suppliers’ discontentment and high workload within the organization.


The client needed to comply with the payment terms, particularly with the regional SME suppliers and to reduce the payment terms from 30 to 7 days.

We made an assessment of the main problems when presenting the invoices and found out the following, among others: - Ignorance as regards platform management. - Ignorance as regards the process related to purchase order acceptance and payment status presentation, among others. Next, we redesigned the payment process, elaborated tools to train suppliers, and conducted face-to-face and virtual training through e-learning.

As a result of this project, we trained over 280 regional suppliers face-to-face and we elaborated e-learning material for virtual training. Besides, the client managed to decrease the payment term from 30 to 7 days.

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