By Mark Davidson
Excelling outdoor retailer Go Outdoors is hoping to save around £9,000 annually by phasing out cheques and automating its payment solutions across all areas of the business.
The Sheffield-based company is using electronic payment solutions developer, Albany Software, to pioneer the transition and hopes the move will help manage relationships with its suppliers by ensuring that payment for products is smooth and without complications.
Roger Woods, Financial Controller at Go Outdoors, commented: “When it comes to making payments, business expansion has made a considerable difference to both us and our suppliers.
“As orders increase so do the magnitudes of payments and it has become ever more important to clear payments promptly in order to keep supplies flowing.”
Go Outdoors has grown rapidly in the last few years and plans to open ten new stores in 2011 after reporting record sales of £107 million for the last 12 months. This impressive expansion highlights the need for a change in payment system.
Woods continued: “As we become a more sizable customer to our suppliers, the implications of potentially receiving a cheque late through postal delays, plus having to wait three days for clearance, become greater in terms of their cash flow and business processes as well as our receipt of goods in a timely fashion.
“Internally, handing such a high volume of cheques is both time-consuming and resource-hungry. I personally sign each cheque, which collectively takes an hour or so of my time and is the most tedious part of my week.”
The company is also aiming to be greener by phasing out cheques, a move that will drastically reduce its paper consumption, especially in the finance department.