Supply chains are becoming increasingly complex, and businesses are looking for ways to streamline them. Accounts payable (AP) automation software is one such tool that can help manage supply chains more effectively.
To understand the automation side of it, let’s first define accounts payable – it’s the process that includes all of the activities necessary to pay for goods and services that have been procured. This includes everything from creating invoices to issuing payments.
The goal of AP automation is to make this vital ongoing business task, as efficient as possible – especially when applied to a business’s supply chain.
What is the role of AP automation software in supply chains?
AP automation software helps to reduce the need for manual input and speeds up the processing of invoices. This leads to a more streamlined workflow and improved transparency and security. In addition, it also helps to reduce labor-intensive tasks, making the entire process more efficient.
The 5 different ways AP automation streamlines supply chain management
When it comes to supply chain management, there are many different factors that need to be taken into account in order to ensure smooth operations.
Here are 5 ways AP automation can do its part in streamlining supply chain management:
1 – Streamline sourcing
Supply chain management can be greatly streamlined with AP automation tools. By automating the sourcing process, you can quickly and easily find the best suppliers for your needs, compare prices, and make sure that you’re getting the best possible deals.
2 – Easier virtual payments
AP automation also makes it easy to make payments electronically, which can save a lot of time and money. With virtual payments, there’s no need to print cheques or send out invoices, and you can track all of your payments in one place.
3 – Eliminate manual work
Automating your AP process can help you eliminate tedious and labour-intensive tasks like data entry and invoicing. This can free up your time so that you can focus on more important tasks, and it can help improve your bottom line.
4 – Go paperless and digitize your workflows
AP automation can help you go paperless, which can save time, money, and resources. With a paperless workflow, you can eliminate the need to print invoices, and you can store all of your documents electronically. This can help reduce clutter and make it easier to find what you’re looking for.
5 – Get transparent and more secure
AP automation can also help improve transparency and security in your supply chain management process. With better visibility into your AP process, you can catch errors and fraud early, and you can track all of your payments in one place. This can help reduce the risk of loss and increase your overall security.
Tips to improve supply chain channels with AP automation
If you’re looking for ways to improve your supply chain, consider using AP automation tools. AP automation can help you streamline your supply chain management and save time and money. Here are some tips to get the most out of your AP automation:
- Use an automated system to track invoices and payments. This will help you keep tabs on your spending and ensure that all invoices are paid on time.
- Automate as much of the invoice process as possible. This includes creating invoices, approving them, and sending them to vendors.
- Set up automatic payments for your invoices. This will help ensure that all invoices are paid on time and help avoid late fees.
- Use AP automation to track your spending. This will help you see where your money is going and identify areas where you can save.
How to get the best out of your supply chain channels with AP automation software
When it comes to the software you use, there are some general features that you should look for in any AP automation solution.
First, the software should be able to integrate with your existing accounting system. This will make it much easier to keep track of all of your financial data in one place. Second, the software should be able to automate many of the tasks associated with accounts payable, such as creating invoices and issuing payments. Finally, the software should provide you with real-time visibility into your AP process so that you can identify any potential bottlenecks or issues.
By investing in AP automation software, you can streamline your supply chain management processes and free up time to focus on other aspects of your business. This will ultimately lead to improved efficiency and profitability — book a demo with DOKKA to see how our AP automation solution can help you gain control over your AP.
