FREMONT, CA: Industries have sparked the cutting-edge advances that will carry innovative thinking to all of its functions. The Accounts Payable (AP) process is still bogged down with paper-based payment schemes for many manufacturers. These manufacturers rely on AP teams to handle payments manually, including keying in data and routing for approval and finally posting. When it comes to strengthening relationships and ensuring a continuous stream of necessary supplies and equipment, paying suppliers on time and in their preferred format can make a huge impact. To drive more significant efficiencies manufacturers are now automating AP processes to reduce costs across the organization.
It may seem like an intimidating task for the transition to payment automation, but the integration can be seamless with the correct partner. The preferred solution allows the AP department to leverage existing accounting systems and bank relationships to make secure electronic payments to the vendors. It will benefit the suppliers from the convenience of electronic payments. This process is less time consuming and can often bring earlier payment terms or Automated Clearing House (ACH), which deposits funds directly into bank accounts. Manual paper check process helps both manufacturers and suppliers save time and cost.
The ability to provide detailed remittance data in suppliers’ preferred formats is another point that is vital while paying suppliers electronically. Transitioning to electronic payments also helps to mitigate the threat of fraud. Electronic payment partners have built-in monitoring, which helps in identifying risks and stop the unauthorized movement of funds protecting the business and supply chain alike. It is time to move forward from the era of paper checks and revolutionize AP processes by transitioning to electronic payments.
The most prominent advancement in the history of modern civilization is the industrial revolution, and the manufacturing industry has its roots intertwined within. The manufacturing process was transformed overnight from a labour-intensive to one that utilizes intelligent machines to increase the production of goods exponentially.