In our last blog, we discussed the importance of onboarding to the success of a supply chain finance program. LSQ approaches supplier onboarding as one of the most critical pieces to implementation of a supply chain finance program. In fact, supplier onboarding planning is a key step in our process even before the buyer is our client.
We take a data-driven approach to planning our outreach, followed by a human-centered approach to interacting with both our clients and their suppliers.
LSQ’s supplier outreach begins by utilizing our data science team to complete an analysis of the client’s suppliers and their payment data. Using this data we can determine which suppliers will be the likeliest to adopt LSQ FastTrack and use it to formulate an outreach strategy. This data is then used to create a three-tiered approach to supplier outreach based on the buyer’s individual goals:
Suppliers with larger amounts of open AR and longer DSO are more likely to enroll. These suppliers will be part of our target in our first wave of outreach.
Suppliers in this category will either have large amounts of AR that is paid quickly or low amounts of AR that are paid slowly. We will prioritize enrolling suppliers with larger amounts of AR.
Suppliers with smaller amounts of open AR and shorter DSO are less likely to enroll. These suppliers will be targeted in later waves of outreach depending on the amount of total suppliers.
Suppliers in the “high” tier will be the first to be targeted for enrollment, followed by “medium,” and finally “low.” This ensures the suppliers most likely to adopt a supply chain finance program will be the first to be educated on the value of participation. Additionally, we work with buyers to identify critical suppliers that may not represent a large portion of spend but provide materials or services vital to the buyer’s operations to include in the initial wave of outreach.
The LSQ outreach to suppliers will always be transparent and honest – not pushy or misleading. We will focus on educating suppliers on the value proposition of the supply chain finance program.
Our outreach and education campaigns utilize:
- Scalable call and email contacts to enroll suppliers
- Automated targeted marketing with your messaging
- Dedicated account management team to answer questions and support suppliers
Quick and Easy Supplier Registration
Once a supplier is ready to join the supply chain finance program, LSQ FastTrack makes the process as frictionless as possible, usually taking less than two minutes to complete. Suppliers receive an email invitation to enroll in FastTrack that will prompt them to create a login and account, followed by an email confirmation with code to be entered to move forward with three simple steps:
- Set up multi-factor authentication (MFA)
- Accept the supplier and end-user license agreements
- Verify banking information
Once completed, suppliers are able to request early payments on open, eligible invoices usually within one business day.
To make supply chain finance a win-win for buyers and suppliers, the program has to be used. If suppliers aren’t onboard, no one benefits. That’s why we have dedicated tremendous resources from our data science team, customer success group, marketing and sales organizations, and executive team to ensure supplier onboarding is done right and gives the program the greatest chance of success.