Why Automated Payment Process is Important for Positive Cashflow in Dairy Industry?

Digitalisation has broadened the horizon of the payment process by automating it. According to the Global Findex 2021 database, automated payments have escalated while increasing economic opportunities, and giving flexibility at the ground level to manage financial shocks. 

What is an Automated payment system?

In simple terms, it is the process of automatically generating invoices, sending these invoices via mail or sms, payment of the bill, and reconciling the payment. Customers can pay their bills either online or in cash, eliminating the hours of payment collection.  

Challenges in manual handling of the payment process

Payment collection, recovery, and reconciliation is a time-consuming and cost-inefficient tasks, especially for businesses being operated manually. 

1. Manual reconciliation of orders and invoicing- Reconciling the orders manually can include human errors making a difference in the invoice cause customer disputes.
2. Payment Collection- Manual cash collection can result in delayed payments in the case of the unavailability of customers to pay. Delayed payments can disrupt your cash flow.
3. Payment recovery- Manually managed data due to chances of human errors is not precise resulting in a flawed payment recovery process.
4. Payment reconciliation– Manually reconciling payments is a time-consuming task and is prone to human errors. This can lead businesses to incur losses.
5. Manually updating Payment status- Businesses might lose the track of payments if your driver, or you forget to update the transaction status. This can lead to a difference in the next invoice and leads to a negative customer experience. 

What can be done to deal with payment management issues?

1. Automatic payment and low balance reminder- A system supporting automatic online payment and due payment notification via sms or mail ensures timely payments and avoids confusion. Sending low balance notifications in the case of wallets makes sure that the customer adds money to his wallet.
2. Automated order reconciliation and invoicing- A system that automatically reconciles the order history and generates an invoice removes the chances of human error.
3. Proof of payment- Customers can upload the receipt of the paid payment to avoid disputes.
4. Easy payment methods- Link-based invoices attached in the mail or sms sent to the customers allow them to pay now.  This makes it easy for the customers and saves them time. 

How to employ the above-mentioned measure?

1. Automated order summary- All the orders and delivery history can be displayed on the customer website and mobile application along with the transactional summary. This increases the transparency between the business and the customers leading to a high customer satisfaction score.
2. Seamless payment experience- The availability of multiple payment options (wallets, online payment options like online wallets, card payments, payment gateways, and offline payment options) gives customers flexibility in making payments. This enhances the customer payment experience and ensures positive cash flow.  

Don’t let these issues come in the way! 

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