When none of the different parties of an international payment transaction knows where a payment is in transit, fixing any delays is a challenge. L’Oréal, with support from BNP Paribas has created a simple solution that shines a light on every payment-related move, for all involved.
With L’Oréal Group executing international transfers on behalf of most group entities worldwide, every transaction passes through L’Oréal’s treasury systems. This, says Justine Dimovic, Global Head of Treasury & Financing, L’Oréal, means that treasury is the nexus for all flows and settlements, and therefore the point of contact for each supplier looking for information about an expected payment.
With the L’Oréal-developed BENETracker, the group’s operational units upload their transfer orders into the treasury system, signing them biometrically. An email is then generated for the relevant beneficiary, informing them of the impending payment. This includes identifying details such as the invoice number and a URL enabling the beneficiary expecting the payment to track it online and in real time. There is no longer a need to call L’Oreal’s team to investigate the payment and when it can be expected to appear on the beneficiary’s account. It is a system that works well. But it has not always been this way, comments Dimovic.
Previously, there was no visibility over the payment process once the request for payment transfer had been lodged in the banking system. With every payment “disappearing into a black box”, when a problem arose, fixing it was a drain on resources for all. Tracking a misplaced payment can demand time-consuming three-way conversations, says Dimovic.