Manufacturing shop floors are now characterized by the Industrial Internet of Things (IIoT), smart manufacturing, and intelligent automation. Manufacturing Accounts Payable (AP) departments, however, still struggle with serious inefficiencies. See the top five challenges impacting manufacturing organization when paying vendors according to Strategic Treasurer.
Top Five Challenges Impacting Manufacturing Organizations When Paying Vendors
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Managing and updating vendor bank account details
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Timely approval of invoices and payments
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Difficulty capturing early payment discounts due to slow approvals
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Missing vendor information
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Manual workflows and excessive delays caused by legacy payment processes
Read on to see how manufacturing companies are transforming AP to combat these challenges.
How manufacturing companies are transforming AP:
Process Automation
75%
of manufacturing CFOs report that optimizing AP processes is their top focus for digitization efforts
50%
of manufacturing organizations plan to invest in AP automation technology over the next year
Digital Payments
86%
of manufacturing organizations plan to increase their use of ACH payments over the next year
75%
of manufacturers state that converting from checks to ACH and virtual card payments is their top priority when automating AP
48%
of manufacturing organizations plan to increase their use of virtual card payments over the next year
Top benefits of digital transformation in
manufacturing AP
Time Savings
60% of manufacturers say that time savings and improved productivity are the top drivers of AP process automation at their organizations
Data Visibility
55% of finance executives cite improved AP visibility as a top priority and key benefit of automating accounts payable
Fraud Detection
64% of manufacturing organizations have experienced a payment fraud attempt within the past year, with 14% having suffered more than one loss
Over $275 billion in ACH and virtual card payments are made using Paymode every year, all with zero fraud
Vendor Relationships
58% of Bottomline customers report improved vendor relationships as a result of using Paymode
Cost Savings
Organizations save up to $4 per check by converting to digital payments and automating processes
Late Fee Elimination
Only 48% of payments are made on-time without automation
But 90% of payments are made on-time even with a modest level of AP automation
