Spotlight on managing vendor relations

Developing a strong focus on vendor relations and management is integral to maintaining a healthy, thriving business ecosystem. At an operational level, the AP (accounts payable) team is responsible for managing vendor interactions concerning payments and any other financial transactions that may form part of the business relationship.

AP’s performance of its core function plays a crucial role in determining the tone surrounding these relationships. An enterprise that processes invoices by relying in some part on manual methods is likely to be prone to errors and inefficiency.

Invoice processing automation revolutionizes the speed and accuracy with which AP is able to perform, enhancing the way an enterprise interacts with its vendors. Across the depth and breadth of individual supplier relationships, automating accounts payable goes a long way toward creating a stronger and more mutually beneficial network.

The value of vendor knowledge

Over time, through working routinely with vendors, the AP team acquires a wealth of knowledge. This includes a detailed understanding of matters such as payment terms, the history of aged-debt and on-time payments, and any potential risks. For key suppliers, direct contact between key team members may help to smooth out wrinkles, helping to build trust and better working relationships.

Such knowledge and personal familiarity are valuable assets, serving as the cornerstone of effective vendor management. It enables enterprises to optimize their interactions with suppliers, ensuring they receive the best treatment and benefits.

Maximizing benefits through automation

Implementing AP automation with APMatching allows enterprises to take vendor management to the next level by streamlining processes and enhancing efficiency. APMatching strengthens vendor relationships through:

  • Improved communication: APMatching AP automation provides tools that enable seamless communication with vendors. Whether it’s invoice submission problems, missing information, or unrecorded invoices, timely communications reduce the risk of misunderstandings.
  • Prompt payments: APMatching AP automation ensures on-time payments. Few things enhance an enterprise’s reputation for trustworthiness like settling its debts on time.
  • Data-driven decisions: By providing insights into vendor performance factors such as timely delivery and fulfillment, APMatching allows enterprises to make informed decisions about their supplier relationships.
  • Negotiation leverage: Equipped with data, reports, and business intelligence from APMatching, enterprises are empowered to negotiate preferential pricing, volume discounts, and improved payment terms, obtaining more value from the vendor partnership.
  • Reduced errors: Automating AP with APMatching produces levels of speed, efficiency, and accuracy that an enterprise has likely never achieved before when processing invoices. APMatching minimizes the risk of errors and discrepancies, further fostering positive vendor relationships.

The AP team’s evolving role

With APMatching automation doing the heavy lifting and ripping through the routine invoice and statement matching, as well as duplication detection tasks that close the loop in AP, an enterprise AP team is freed up to evolve its role.

The AP team has the breathing space to be more proactive and focus on activities that deliver greater value to the enterprise, including tasks that are of more strategic importance. Proactively nurturing, and developing the vendor network is certainly a prime area of focus.

Develop stronger vendor relations and networks with APMatching

AP automation with APMatching is a game-changer for enterprises that transforms the efficiency and strategic value of the AP department. See how APMatching accounts payable automation software supports enterprises in their quest to maximize financial performance.

Take a personalised demo with one of our representatives, and we’ll show you how the software eliminates tedious, time-consuming manual invoice processing and automates duplicate invoice detection.

If you like what you see, we’ll give you full support so that you can more fully evaluate APMatching with a Proof of Concept (PoC), demonstrating how effective it is using your own data.