Mastercard pioneers new technology to improve supply chains; Basware partners at launch to quickly bring new service to customers.
More than 250 million companies around the world transact $125 trillion in goods and services each year, but inefficiencies and friction cost those businesses $500 billion annually.
As the global marketplace continues to expand and stakeholder expectations become increasingly more demanding, managing payments and risk in the supply chain is developing into a growing challenge, too.
Drivers of Change
Globalization, changing roles of procurement, and digital transformation are big catalysts driving change that bring both challenge and opportunity to the business-to-business (B2B) payments space. The supply chain has become much larger and more diverse across borders and because of this, risk management and payments have become highly complex and varied. The promise of digital transformation shines bright, but many companies adopt an “a la carte” approach and don’t see the value in connecting across systems or supplier networks. The rapidly changing landscape has created a deeper patchwork of backend solutions for procurement officers, leaving an urgent need to course correct.
These changes are creating gaps for procurement organisations as technology and resource investments are not keeping up with the rate of change. Here’s a look at some of these challenges:
Nearly two-thirds of business leaders report limited or no visibility beyond tier 1 suppliers. Up to this point, there’s historically been limited ability to monitor the risk profile changes for long tail suppliers, opening companies up to the risk of fraud or sanctions enforcement actions.
Supply chain disruptions from regulatory, natural disaster, or financial solvency can significantly impact the business, costing up to a 35% drop in shareholder returns over three years.
Cost pressures such as data spend and people resources for supplier management compete with the need for more strategic initiatives.
This all may feel like insurmountable challenges for procurement leaders, but luckily there is low-hanging fruit that can be used to implement enterprise solutions that create significant, tangible cost savings.
What Solutions Are Available?
The good news is that there are new and unique solutions that address the urgent need to better manage risk, increase visibility across the full supplier ecosystem, and reduce costs and labor associated with these processes. These simultaneously increase the speed, safety, and ease by which payments travel through the supply chain. Companies can connect or consolidate efforts that now exist across multiple channels (read: multiple expenses), to leverage trusted technology platforms that automate the secure, compliant and inclusive flow of payment information and actioning to drive efficiencies up and costs down.
Ready to Learn More?
Watch our on-demand webinar, “Innovation in Supplier Risk Management” to learn more about new ways to manage supplier risk and how you can employ them within your Basware system.
Learn more about the partnership between Basware and Mastercard Track. And as always, reach out – we’re here to help!