The time it takes to pay your small business suppliers is now in the spotlight with the Payment Times Reporting Scheme. Seeing how you compare with other organisations in your industry and generally, can help you to solidify your supply chain, reduce supply risk and provide better economic outcomes as the recovery from the impacts of the COVID-19 pandemic occurs.
The Payment Times Reports Register makes data publicly available on the time it takes reporting entities to pay their small business suppliers, with the intent to provide greater transparency on payment terms and performance for small businesses. Utilising this dataset, our FairPayment solution and data scientists are able to compare your organisations payment performance to small business suppliers to the performance of organisations in the same industry and across the nation.
This means that you will be able to determine how you compare to other organisations in the same industry and how many days above or below average you are in terms of your average payment times.
A multi-national organisation payment performance assessed across dozens of entities and recommendations made to improve Payment Times Reporting compliance.
Before their first reporting period had ended, management were interested in gaining an understanding of their readiness to report under the Payment Times Reporting Scheme and any immediate actions they could take to improve payment performance to small suppliers, particularly in respect to unpaid invoices. Deloitte was engaged to review their performance against the legislation and to identify opportunities for enhancing payment performance.
We combined our finance expertise with Deloitte FairPayment to provide a robust, data-driven analysis.
Our process analysed supplier data and six months of invoice and payment data from across of reporting entities and over 7,000 suppliers.
Cleansed and structured the data and assisted with classification of various scenarios impacting reporting such as credit notes, foreign suppliers and excluded payments.
Close to 1 million invoices were rapidly analysed to identify the reporting population and established the baseline for the calculation of the payment performance to small businesses.
Analysed payment performance across entities, by month and between key dates including invoice receipt date and invoice date.
Augmented the data insights with a detailed qualitative assessment of the organisation’s current-state process to map out the desired future aspirations.
Data driven insights to drive change including improvement to data quality, payment performance and P2P process.
Increased accuracy of the first submission and compliant reporting whilst offering a board report.
Enabled a repeatable and simple on-going PTRS preparation process powered by Deloitte FairPayment.
Sustained 40%+ improvement to payment times and reduced 15 days to pay on average, since the first submission.