Procurement and supply chain management are some of the challenging areas that businesses face. Without sufficient monitoring of critical processes, it can lead to delays which can become costly. Hence, it becomes pertinent for companies to explore the potential of using software to streamline tasks. The following are ways automation can support your business operations and resolve supplier friction.
Reduce Payment delays
Payment delay is a critical issue that AP automation can address efficiently. The problem can come from various issues, including strained relationship with suppliers, bottleneck in invoice processing, or potential disputes. The inability to resolve these matters can create inherent challenges to a company’s cash flow. Having an online platform in place gives better controls to monitor the flow of invoices and identify upcoming payments. The availability of transparent information enables partners to resolve misunderstandings and expedite collection.
Improve Inquiries and Updates
Another advantage of using computerized platform such as Nexus automation comes from the potential to perform inquiries and updates. Specifically, there can be difficulties in going back and forth to gather relevant information. These activities can create backlogs and become challenging to monitor especially in a long thread. When businesses automate, they have the chance to categorize item and access these developments in a portal. More importantly, complex requirements such as international tax, exchange rates, and regulatory compliance become easier to handle with an automated system in place.
Resolve Cash Flow Issues
Using an AP automation system also reduces instances of cash flow problems. Companies that experience payment delays have the potential to disrupt business operations. The issue can also tarnish business reputation as failed obligations can also mean repercussions to suppliers. That is why it is crucial to automate the invoice process due to its potential to reduce handling time and delays. Companies also can add buffers or allowance for lead time to ensure that suppliers settle their dues on-time.
Alleviate Paper Invoices
While some companies prefer the use of paper for invoices, it can become tedious to oversee and manage. That is why it can become advantageous to utilize Nexus automation to reduce administrative charges or transition towards paperless invoices. Making the jump to electronic invoices give businesses the chance to take advantage of efficiencies and customize on processes that complement their preference. At the same time, companies can delegate their resources in fulfilling productive tasks instead of managing paper trail and documentation. All these results in significant cost reduction and better time management.
The Bottom Line
Overall, technology is a powerful instrument that continues to help businesses reduce cost and achieve an effective practice. Part of the process feature automation where the use of systems helps address mundane and time-consuming tasks. The points above are some of the benefits of using a platform and resolve supplier friction. While there are clear benefits, it is crucial for businesses to examine in-depth their existing process and determine areas for improvement. Such an approach can help companies source qualified automation providers and customize solutions according to their needs.
Nexus automation solutions help you gain full control of your workflow from purchase to payment. Contact us for a free demo.