Virtual CArds:
Supplier Enrollment
Organizations continue to migrate suppliers from paper check payments to electronic payments, which include Virtual Cards. Often the biggest hurdle to such an initiative is supplier enrollment. Whether your organization tackles this hurdle on its own or you outsource the process, the same key strategies increase the likelihood of success.
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The following tips were shared by Matthew Dragiff, Vice President, Product Development, AvantGard Payment Services, SunGard. While he focused on Virtual Cards, the tips also apply to P-Cards.
Prep Work for Supplier Enrollment Campaign
Be strategic about the suppliers you target for Virtual Cards.
Identify the suppliers to target by considering current spend volume, frequency of use, spend category, etc. In particular, review suppliers currently paid via check.
Understand the supplier/buyer relationship and determine the best approach or tone to take for each supplier. Will you simply offer, strongly encourage or mandate your Virtual Card program?
Prepare customized communications (e.g., campaign letters) for each type of tone.
Ensure you have current contact information for each supplier, including mailing address, phone and email. Organizations often find that they lack a current email.
Executing the Campaign
Communications should include a letter and/or email plus a phone call. It takes an average of three calls to reach the right contact—someone with decision-making authority—within each supplier organization. For every two outbound callers, you will need one inbound call receiver. If a supplier declines participation in the Virtual Card program, document why. Plan to follow up again with the supplier at a designated time (e.g., in nine months) in case something changes.
Once a supplier enrolls, do not keep sending a check payment. This is confusing to the supplier. In addition, Recharged Education suggests adjusting your AP system/supplier records accordingly to indicate the preferred payment type.
Further, Recharged Education recommends incorporating education as part of the enrollment strategy. Explain to each supplier the benefits of P-Cards or Virtual Cards and how, exactly, the purchase-to-pay (P2P) process will work. You do not want to on-board a supplier only to have that supplier drop out of the program later because they didn’t understand what it entails. Re-boarding a supplier can be tougher than the initial on-boarding.
Ongoing
Verify that things are working as planned with enrolled suppliers. Continue to add suppliers, as appropriate.