Businesses rely upon their vendors to provide on-time supplies and services, and their success hinges upon a successful working relationship that supports a strong and continuous supply chain. Companies can’t afford to lose vendors due to an inefficient accounts payable process that results in late or lost vendor payments.
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Why Vendor Relationships Depend on an Efficient AP Process
When a company’s AP process is automated, the relationship with a vendor can take precedence, and the vendor’s payments are more likely to be on time. It’s truly a win-win situation in the company-vendor relationship. By eliminating manual tasks, this frees your accounts payable staff to focus on value-added tasks such as:
- Reporting and analytics
- Increasing communication with vendors
- Better maintenance of the vendor master
- Negotiating more early-pay discounts
- Helping error-prone vendors
- Strengthening fraud controls
Numbers Don’t Lie: How AP Automation Improves Transparency & Strengthens Vendor Communication
With AP automation, your AP team can provide enhanced data and analytics to procurement and management, helping them better manage vendor relationships. Comprehensive reports on late payment fees, process bottlenecks, and payment delays shine a light on areas for improvement so you can address issues before they escalate.
Here’s how AP automation strengthens vendor relationships:
- Improved Payment Timeliness: Automating AP ensures invoices are processed and paid on time, reducing late fees and building vendor trust.
- Better Transparency for Vendors: Tools like the Vendor Inquiry portal let vendors track their payment statuses anytime, cutting down on frustration and unnecessary back-and-forth.
- Streamlined Communication: With fewer manual tasks, your team can focus on nurturing vendor relationships and resolving issues proactively.
- Faster Access to Early Payment Discounts: Automation makes it easier to identify and capitalize on early payment discounts, saving your company money.
- Data-Driven Insights: Detailed reports help procurement and finance teams pinpoint and fix issues before they impact vendor relationships.
How AP Automation Unlocks Cost-Saving Opportunities
Automating accounts payable doesn’t just streamline your payment process–it unlocks significant cost-saving opportunities. By reducing manual handling, your AP team can focus on strategic activities like negotiating early-pay discounts and resolving vendor issues.
Capitalize on Early Payment Discounts
Automated systems track due dates and payment terms, ensuring you never miss a discount. For example, a 2% discount for paying within 10 days can add up to significant savings over time.
Prevent Invoice Errors & Capture Savings with AP Automation
Automation validates invoices against POs and contracts, catching discrepancies early and reducing the risk of fraud or penalties.
With AP automation, you’re not just improving processes—you’re building trust, saving money, and creating stronger vendor relationships. Happy vendors mean smoother operations, right?
Case Study: How Wente Family Estates Strengthened Vendor Relationships with AP Automation
Wente Family Estates, the oldest continuously operated family-owned winery in the U.S., started using the DataServ APA solution in 2009 to automate their accounts payable. The results? Better visibility, improved vendor management, and more timely payments.
Sebby Hansen, Wente’s Accounting Manager, explains:
“Invoices are paid on time more frequently because they’re no longer getting lost on someone’s desk. They come directly to DataServ, eliminating delays like forgotten emails or missing paperwork.”
With AP automation, Wente also gained the ability to track early payment discounts more effectively. Regina Jaderstrom, Wente’s Corporate Controller, shares:
“With increased visibility and quicker invoice processing, we can act faster and secure more early payment discounts.”
But the benefits don’t stop there. By automating time-consuming tasks like invoice intake and tracking, Wente’s AP team was freed up to focus on what people do best: building stronger vendor relationships. Whether it’s negotiating early-pay discounts, resolving disputes, or nurturing new partnerships, AP automation gave Wente the tools to foster long-term, mutually beneficial relationships.
Ready to Strengthen Your Vendor Relationships?
Automating your AP processes can free up your team to focus on high-value activities, like improving vendor communication and addressing challenges like fraud or payment errors. With the right AP automation solution, your team will be positioned to drive business growth and secure stronger vendor partnerships.
Take the first step toward smoother vendor management—Contact us to learn how our AP automation solution can benefit your business!
