Turning accounts payable departments into a competitive advantage for manufacturers and their suppliers.
Accounts payable (AP) automation is no longer just a back-office efficiency tool link opens to a Commerce Bank page; it’s a strategic investment that can strengthen supplier relationships and improve operational resilience. In years past, some companies hesitated to adopt AP automation, concerned it might disrupt supplier partnerships. However, the narrative has shifted — automation is now recognized as a win-win for both buyers and suppliers.
Manufacturing suppliers stand to benefit significantly from the decision to implement AP automation. Predictable payment schedules, improved transparency and faster processing times enable suppliers to streamline their operations and plan effectively. For manufacturing businesses navigating tight supply chains, the advantages are clear: automation fosters trust, efficiency and mutual growth. Let’s explore how AP automation directly impacts supplier relationships and enhances manufacturing operations.
Predictable processes.
Manufacturers thrive on predictability, and AP automation delivers exactly that. By establishing a consistent and transparent AP process, suppliers will have clear expectations for payment timing, reducing uncertainty and enabling accurate cash flow forecasting. Fewer inquiries about payment statuses mean teams can focus on core business activities instead of fielding supplier calls.
Accelerated payment cycles.
The manufacturing industry’s reliance on just-in-time inventory underscores the importance of timely payments. Automation eliminates manual bottlenecks, allowing for quicker invoice approvals and payments. Electronic payment methods like ACH or virtual cards further expedite the process. Suppliers may even offer discounts for early payments, providing a direct financial benefit to businesses while reinforcing trust with outside companies they work with.
Enhanced transparency.
Real-time payment tracking is a game-changer for suppliers. With AP automation, manufacturers can grant suppliers visibility into the status of their invoices, from submission to payment. This level of transparency reduces uncertainty, enhances trust and enables better financial planning on both sides of the transaction.
Reduction in check payments.
In today’s age, waiting for checks in the mail is outdated and inefficient. Most suppliers prefer electronic payments for speed and convenience. Offering digital payment options not only accelerates payment delivery but also eliminates the risks and costs associated with paper checks. Transitioning to electronic methods means reduced administrative burdens for suppliers and enhances their overall experience.
Fewer errors.
Automation drastically reduces human errors associated with manual data entry. For manufacturing suppliers, this translates into fewer invoice discrepancies and payment disputes. Streamlined processes minimize frustration and free up valuable time for all parties.
Supplier support.
Comprehensive support is essential for supplier adoption of AP automation. Solutions like those from CommercePayments® offer dedicated supplier hotlines, ensuring that suppliers have a direct line for questions or concerns. This level of support simplifies the transition to automation and reinforces their value.
A look to the future.
Suppliers who adapt to automated systems today will be better equipped to integrate with future technologies and processes. Choosing a solution that prioritizes ease of use and robust supplier support ensures a smooth transition and paves the way for long-term success. Our solutions include dedicated supplier support, a variety of payment options and innovative features like “auto-acceptor” programs provide an unmatched level of service. Once suppliers gain confidence in automation, it sets the stage for smoother collaborations and improved efficiency across supply chains. In an industry where trust and timing are paramount, AP automation is not just a convenience — it’s a necessary strategic advantage.
Learn more about how CommercePayments® link opens to a Commerce Bank page can revolutionize your AP processes and position your manufacturing business for success in 2025 and beyond.
CommercePayments® solutions are provided by Commerce Bank.
