STEP BY STEP: B2B Payments: The Final Frontier, with Paul do Forno, Deloitte
Future Commerce · with Paul do Forno · November 21, 2022 · 57 min
Summary
This episode dives into the overlooked realm of B2B payments, highlighting an $8 trillion opportunity in modernizing these transactions. For ecommerce operators, this means recognizing that optimizing B2B payment infrastructure is crucial for cash flow management, profitability, and expanding market reach in an increasingly competitive landscape. The episode makes a strong case for investing in digital solutions to streamline B2B payments, ultimately impacting the bottom line.
Key takeaways
Businesses are losing out on significant capital by not optimizing B2B payment processes; roughly half of the $17 trillion in B2B payments are still manual, representing an $8 trillion opportunity for digital transformation.
Reducing Days Sales Outstanding (DSO) directly impacts profitability; even marginal improvements in payment times can result in tens of millions of dollars saved for large enterprises.
Digital B2B payment solutions can help businesses broaden their market by enabling transactions with partners they might not have previously trusted due to payment complexities, by outsourcing credit and terms management.
The shift to modern B2B payment systems is not just about efficiency but also about customer experience, reducing friction for clients to fulfill their contractual obligations easily.
The move to platforms like SAP S/4HANA is forcing many industrial and manufacturing companies to digitally transform their back-office operations, creating a ripe environment for B2B payment modernization.
There are a million reasons why B2B payments are behind the times. In an era where margins are razor thin, businesses make irrational decisions that cause frustration and headaches for employees and for finance. The modernization of payments in business is the final frontier of digital transformation, employee experience, cash flow management, and profitability. When every point of margin matters, investing in your payments infrastructure is critical to your success. Listen in as Paul do Forno, Managing Director at Deloitte shares why he believes B2B payments is the next great untapped industry. Listen now!
What does this episode say about finance & fundraising?
Businesses are losing out on significant capital by not optimizing B2B payment processes; roughly half of the $17 trillion in B2B payments are still manual, representing an $8 trillion opportunity for digital transformation.
What does this episode say about supply chain & operations?
Reducing Days Sales Outstanding (DSO) directly impacts profitability; even marginal improvements in payment times can result in tens of millions of dollars saved for large enterprises.
What does this episode say about ai & automation?
Digital B2B payment solutions can help businesses broaden their market by enabling transactions with partners they might not have previously trusted due to payment complexities, by outsourcing credit and terms management.
What does this episode say about dtc strategy?
The shift to modern B2B payment systems is not just about efficiency but also about customer experience, reducing friction for clients to fulfill their contractual obligations easily.
What does this episode say about finance & fundraising?
The move to platforms like SAP S/4HANA is forcing many industrial and manufacturing companies to digitally transform their back-office operations, creating a ripe environment for B2B payment modernization.
