The problem

We need to pay invoices promptly because otherwise our supplier relationships are damaged, and this could impact on patient care.

The challenge 

How might we create a sustainable process that will enable the Trust to pay its suppliers in a timely manner and achieve the national requirement of the better payment practice code (BPPC) to pay 95% of undisputed, valid invoices within 30 days of receipt. The 95% is in terms of value and volume of invoices.

The outputs

Our innovation led to a number of tangible products, including:

• A suite of reports and updated responsibilities that streamlined the invoicing process, resulting in year-on-year improvements in payment times
• Improved communication with non-finance staff through the inclusion of a BPPC Key Performance Indicator (KPI) on the financial reports sent to each area.

The outcomes

Faster invoice payments: By streamlining the invoice payment process, the organisation has steadily reduced its backlog of unpaid invoices. In turn, this will have improved relationships with suppliers and has helped the business secure better terms and pricing on future orders.

Better communication and collaboration: By including a BPPC KPI on financial reports sent to each area, non-finance staff understand of the importance of timely invoice payment and how it impacts the trust. We expect this to lead to improved collaboration between departments and a greater sense of shared responsibility for financial outcomes.

Improved customer and supplier relations: By consistently meeting or exceeding BPPC targets, the Trust is building a reputation as a reliable and trusted partner for both customers and suppliers.