UOB Malaysia collaborates with Plenitude Solutions and Visa to launch the country’s first end-to-end procurement solution
Businesses will now be able to use the UOB Visa Payables Automation suite to procure goods and to pay their vendors online conveniently
Kuala Lumpur, Malaysia, 19 November 2021 – UOB Malaysia today announced its collaboration with Plenitude Solutions and Visa to develop the country’s first end-to-end procurement solution to help local businesses manage cost efficiently and raise productivity. The UOB Visa Payables Automation (VPA) suite enables companies to procure goods with Plenitude Solution’s e-procurement solution and to pay their vendors through UOB’s virtual Visa commercial credit card account, even if these vendors do not accept card payments.
Using digital technology to manage cash flow better and to improve cost-efficiency is a top priority for more than 75 per cent of businesses in Malaysia1. The UOB VPA suite automates the purchasing process, from requesting for quotations and issuing purchase orders to invoicing and payments, offering the convenience of a fully-integrated supply chain solution. Businesses can also enjoy interest-free credit on their purchases and extend their cash flow for up to 60 days2. When making payment, their vendors will also be able to receive payment immediately. As the account reconciliation process is also automated, businesses will be less reliant on manual processing and can redeploy their resources to focus on other areas of business.
Ms Ng Wei Wei, Deputy Chief Executive Officer, UOB Malaysia, said that companies are looking for ways to use technology to streamline their operational processes and to sustain their businesses post the COVID-19 pandemic.
“The movement restrictions and lockdowns enforced during the pandemic have led to more businesses sourcing for their stocks and raw materials online, and in turn re-evaluating their financial supply chain strategy to save time and cost. As the country restarts its economic activities, it is imperative for businesses to step up their adoption of technology to manage their cash flow better and to increase productivity for continued growth. At UOB Malaysia, we are constantly thinking of how we can help businesses to innovate and to grow sustainably for the long term. That is why we are pleased to partner Plenitude Solutions and Visa to launch the UOB VPA suite to support businesses in achieving greater efficiencies in their procurement and financial management.”
Dato’ Mohamad Razali Mohamad Rahim, Chairman, Plenitude Solutions, said, “Our procurement solution enables businesses to automate their purchasing processes conveniently. Instead of writing multiple cheques and juggling multiple payment terms and dates, businesses using our solution will pay their vendors using Visa’s virtual credit card facility and UOB Malaysia will facilitate the cash settlement at the end of the month. In addition, businesses can enjoy a discount on their purchases if they select immediate cash settlement.”
With Visa Payment Controls, the UOB VPA suite also offers businesses peace of mind when setting spending controls and payment authorisation. These enable them to reduce risk of fraud and misuse by their employees. As an added layer of security, every transaction done with the UOB VPA suite is provided with a Visa Commercial Token that shields the primary account number from any unauthorised usage.
Mr Ng Kong Boon, Visa Country Manager for Malaysia, said, “There are tremendous opportunities in the business-to-business (B2B) payment space to convert cash to secured digital payments. Today, many businesses in Malaysia may not be equipped with the relevant solutions as they still rely on labour-intensive ways with cash or cheques to pay their vendors. Through Visa’s virtual credit card solution, we are transforming how businesses can pay their vendors through digital means. Our goal at Visa is to work continuously with the industry to bring innovative and relevant solutions that can better support the B2B transactions.”
Payments made simpler
JX Nippon Oil and Gas Exploration (Malaysia) Ltd (JX Nippon) is the first company in Malaysia to utilise the UOB VPA suite with its suppliers as part of its digital procurement drive.
Mr Yasuto Ariga, Managing Director, JX Nippon, said, “Smart use of technology and a bold change initiative are the key to successful supply chain management. The UOB VPA suite is an effective financial supply chain e-procurement solution that has enabled us to improve our cross-functional capability by unifying and rationalising our procurement and accounting work processes. This has enabled our Finance team to reduce the time spent on clearing invoices and reconciling payments, thus improving the payment terms with our vendors. Human error is also minimised as the processes are now largely automated.”
For more information about the UOB VPA suite, please visit www.uob.com.my
1 Source: ASEAN SME Transformation Study 2020 by UOB, Accenture and Dun & Bradstreet. The survey was conducted among 1,000 businesses with annual turnover of S$20 million (RM61 million) and below before and during the COVID-19 pandemic, in the third quarter of 2019 and May 2020 respectively. Businesses across five ASEAN markets – Indonesia, Malaysia, Singapore, Thailand and Vietnam – were surveyed.
2 Subject to UOB Malaysia’s Terms and Conditions