The challenge
Jetex encountered a multitude of challenges due to its operations in various jurisdictions and partnerships with numerous global banks. These challenges included a lack of cash visibility and control, delayed payments, and a limited range of working capital tools for supplier payments.
The company relied heavily on a paper-based and manual-intensive supplier payments system. Payments were made either through an internet-based browser or by issuing physical checks. Unfortunately, this process was not integrated with Jetex’s Enterprise Resource Planning (ERP) system. As a result, the finance team had to generate a payment file on the ERP and manually upload it onto the banking platform for approval.
The purchasing process involved the finance team raising a purchase order and seeking approval from relevant departments. Upon receiving the supplier invoice, manual checks were conducted to match it against the purchase order before forwarding the paperwork for payment approval.
Approval procedures necessitated sending original copies of invoices and obtaining signed approvals from authorised personnel. Payments were then subject to approval from each department head, and those exceeding a specified limit required additional endorsement from the head of the corporate finance team. Furthermore, checks had to be physically signed by authorised signatories.
The overall process was limiting, time-consuming, prone to error and delay, and not suitable for onsite and online merchant payments.
Consequently, Jetex’s finance team dedicated a significant amount of time to administrative tasks, diverting their attention from crucial responsibilities such as forecasting and cash management.
The solution
Jetex collaborated with its banking partner, HSBC, to facilitate its digital transformation journey. The initial phase involved enhancing connectivity and automating the existing payment process to integrate it with the company’s ERP system. By leveraging the Treasury APIs of its ERP system and establishing host-to-host (H2H) connectivity, Jetex successfully transitioned the manual payment process to an electronic format, allowing for online invoice viewing and approval.
The treasury team subsequently devised a streamlined workflow for conducting online vendor payments, incorporating a plastic card solution for utility bills and high-value supplier payments. These physical cards also serve as point-of-sale terminals for transactions that require a physical swipe, such as Visa fees.
With the new system in place, each company’s finance team can now generate purchase orders, review and authorise transactions directly within the ERP system. Once approved, whether by the company’s finance team or the global treasury team, the bank’s purchasing card can be utilised to initiate payments through a unified platform.
The suppliers receive funds in real-time, as the transaction is automatically recorded in Jetex’s ERP system via a file feed from HSBC. Additionally, users receive immediate notifications of transactions, empowering them with greater control over purchasing activities.
Through the card programme, the treasury team gains access to a comprehensive range of tools and features that enhance their ability to manage supplier payments effectively.
Best practice and innovation
By upgrading connectivity and integrating Treasury APIs with Jetex’s ERP system, the company has achieved automated payment solutions. This implementation of a scalable connectivity solution allows for the seamless integration of international accounts into a centralized treasury structure.
This centralised structure provides the necessary controls, flexibility, and scalability to accommodate future business growth.
The automated end-to-end payment process has significantly improved Jetex’s ability to manage and streamline supplier payments, granting them greater control over each transaction.
The corporate purchase card programme, with predefined spending limits, enables Jetex to make time-critical vendor payments and conduct point-of-sale terminal transactions efficiently.
The utilisation of plastic cards for merchant payments, with imposed usage restrictions aligned with corporate policies, mitigates the risks associated with manual payments to a considerable extent.
Group Treasury can now access end-of-day online statements, which provide comprehensive transaction visibility. This enhanced visibility and control over transactions have facilitated streamlined reconciliation processes.
Overall, the migration from traditional checks to purchase cards for supplier and ancillary payments has automated the entire process, allowing Jetex’s treasury team to allocate their resources to more strategic initiatives.
As a result, payments have become faster, more agile, and more secure and thereby reducing transaction risks.
Key benefits
