Understandably, you might be cautious about investing your money in new technology or tools, especially amid unprecedented disruption. The costs associated with purchasing solutions, implementing systems, and training employees can be enough to scare away your executive leadership, but the costs of doing nothing can be more detrimental than the costs associated with investing in smarter, more helpful tech.
Below we highlight 3 points of ROI for AP automation when it comes to your supply chain:
The whole point of investing in AP automation is to reduce the amount of manual work associated with your processes. After all, why would you invest in something that doesn’t make your life easier?
With AP automation technology, you can delegate the tedious and time-consuming parts of your processes. No longer will you have to sift through mountains of paperwork to track down an invoice from a seller or flick through a Rolodex of contact information for your business partners.
Instead, you can utilize the advanced machine learning AI to code and approve invoices and effectively eliminate those steps. With the ability to scale up and down the level of involvement automation plays in your organization, you can gain complete control over your processes.
AP automation captures invoices with high accuracy and uploads the invoice information automatically from invoices sent as scanned documents or pdfs. This means that up to 90% of manual data input can be removed with AP automation. This frees up your AP team to work in more constructive and strategic ways.
Which invoice do you think you’ll receive sooner: one that is printed and mailed to your office or one that is sent electronically?
The answer, we hope, is clear.
E invoices and digital processes are much quicker and more reliable than traditional paper methods.
Automating your approach to AP drastically cuts down the time it takes to collect and access transaction data. A cloud-based AP automation software like Tradeshift takes it further and stores all your invoice and payment-related information in one central and secure location. That means it is much easier to access all your information and pull detailed data than with traditional methods.
The benefits of AP go beyond accessing data more quickly. AP automation lets you customize your workflows, rules, and restrictions, meaning you can cut out the middle man and automatically move invoices into the approval stage.
When it comes to cost savings with AP automation, labor costs are where you’ll see your best ROI. Considering labor is one of your biggest expenses and the time it takes to train employees to process invoices, you cut back your expenses significantly. Additionally, you’ll find yourself saving on hidden costs associated with manually processing invoices.
When you invest in a digital approach to AP and seller communication, you reduce the likelihood of miscommunication and errors from occurring.
Humans are prone to make mistakes, especially when working with dozens or hundreds of invoices and client communications. The slightest error in contact information or payment methods can cause significant delays down the line with order fulfillment and invoice payment.
AP automation means that you can reduce the influence humans have on the process, practically eliminating invoice exceptions at the implementation stage.
Additionally, with an advanced AP and digital supply chain solution like Tradeshift, you can be certain that your processes and invoices are compliant across global borders. Within the 190 countries that Tradeshift operates, we can help offer a degree of protection against fines and fees.
Bonus Material: To see a list of all countries where Tradeshift offers support with compliance, check out this article.
The costs associated with investing in AP automation might seem steep, but the benefits far outweigh any hesitations you might face. When you work on digitizing your approach to accounts payable and embracing a more advanced supply chain, you can not only save time but prepare for future disruptions down your supply chain. To learn more about our Ap automation solution and see how Tradeshift can help you build out a more strategic approach to AP, reach out to our team and schedule your demo today.