The world is evolving day by day, and supply chains are becoming more complex. The topic of cashless systems has been at center stage for some time now. Cashless procurement systems are now no longer something of a distant future but one of sudden reality.
The following are benefits of cashless procurement systems:
1.) Reduction of corruption: These systems eliminate tax evasion and loss of revenue for state and federal agencies. The ability for company employees to be on the take or receive bribes is also diminished as all activities can be tracked and effectively quantified.
2.) The efficiency of transactions: All transactions can be implemented without having to manage the logistics and risks associated with moving huge sums of money or waiting in line which adds considerable costs. Therefore, the total cost of ownership of goods and services can be significantly reduced. Cashless procurement systems can lead to a reduction in handling, errors in counting, and reduction in the cost of managing cash systems.
3.) Easy auditing: Cashless procurement systems make the adulting process easier to implement. Erroneous purchases can be monitored and put to an end by smart and autonomous mechanisms. As these systems become more widespread the criminal element will be forced to operate within the confines of the visibility that cashless procurement systems bring forth.
4.) Real-time interaction and cash flow accounting
These systems provide rapid visibility of cash flow positions of companies without any lag. Ledger activity can be monitored in real-time and business leader can make it easier to balance their books.
While cashless procurement systems provide great benefits, we must examine the drawbacks that can occur. One such drawback is the willingness to use credit and go into debt as individuals and companies alike may be tempted to buy more than they can afford. This type of impulsive an unplanned buying can lead to out of control spending and financial ruin.
Just one cyber attack can compromise the entire global financial system, whereas in the current part system can be partially immune to such attacks. Just something to think about be we go full-blown into cashless systems!
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