Confirming is a financial service in which an entity pays suppliers on behalf of the company before the due date. The buyer then settles that obligation on the date agreed with the intermediary.
This service has positioned itself as a strategic tool, not only to improve cash flow, but also to integrate financial management with purchasing processes.
How is confirming linked to cost management?
Cost management is not only about how much you pay, but when and how you pay. This is where confirming has a direct impact:
- Reduces hidden financial costsby avoiding overdrafts, interest or loss of discounts.
- Strengthens relationships with suppliersby offering them advance payments with better terms.
- Optimizes financial planningbecause it allows to have control over the flow of outflows without slowing down the operation.
In addition, if activated from the purchase order, integration with the entire supply cycle, from quotation to payment, is achieved.
How to integrate confirming into the cost strategy?
- Evaluates: Analyze the financial impact of your current purchases and what percentage of your payments generate costs associated with delays, overdrafts or lack of planning.
- Id: Determine the suppliers to implement the model and prioritize those with the highest volume or with whom there are payment tensions.
- Digitize: Use digital platforms that allow you to activate confirming schemes from the beginning of the process.
Cost management goes beyond negotiating prices, it is about implementing smart strategies with efficient, connected and sustainable operations. That's why integrating confirming into cost management is ideal for driving operational planning and sustainability.
With Suplos, you can integrate digital confirming into your processes and transform your cost management.Contact us and take the next step!
