Tiffany & Co. to Automate Payment Settlements
By using a business-settlement network to eliminate paper invoicing, Tiffany & Co., New York City, is positioned to reduce its settlement-processing costs and cycle times.
The upscale-jewelry retailer is currently deploying the Order-to-Pay solution from New York City-based JPMorgan Xign. The Web-based portal, which delivers automated invoice management and contract compliance, is a single point of interaction between all participating Order-to-Pay retailers and their suppliers and service providers. The customized Web site is configured specifically to fulfill the requirements of purchasing, accounts payable and treasury operations.
By moving away from paper invoices, the retailer is primed to automate financial settlement operations. This transition “enables companies to leverage invoice discount opportunities” that can translate into approximately 2% profit gains, said Rich Erario, senior VP and business executive for commercial card and electronic procurement, invoicing and payables for JPMorgan Chase, Xign’s parent company.
Besides promising to reduce settlement-related operating costs by at least 50%, the solution also reduces fraud and errors. More importantly, “Companies have the opportunity to free millions of dollars of working capital and leverage invoice discount opportunities,” Erario said.