A 2013 market research report focused on the state of procurement found that every time an average department processes an invoice, it costs $19. Over 25,452 invoices are processed per year by every FTE in accounts payable and the dollars really add up quickly. Companies that are considered “AP Change Makers” who are correctly utilizing an AP payments vendor save $16.80 per invoice and cut the number of invoices that they process by 40%.
Analyzing vendors means looking at the following 5 characteristics:
Company History – How long has the vendor been in business and does it have a solid reputation.
Expertise and Innovation – the AP space is constantly changing and developing to provide users with better, faster, stronger and easier ways to manage, automate and track commercial payments. It is important to choose a vendor that is leading the charge in innovations and can provide a firm with expertise to navigate the payments landscape.
Security – Data security can never be taken too lightly. Make sure to pick a vendor with the most advanced security protocols to prevent a costly and potentially fatal data accident.
Customer Service – Customer service is just as important in the B2B space as it is when dealing with your own customers. Make sure the platform has the ability to easily reach a live person at any time, incase of an issue.
Success Stories – The best way to assess a solution is to look at what other customers have to say about the service. Check for references and see how other companies have improved their operations by using the AP technology.
Automating and improving AP programs to save money isn’t the only set of factors that should be considered when picking an AP vendor. It is important to make sure to consider the company’s reputation, success, position as leading innovator and ensure that they are reliable. Without covering these steps, it may turn out that sticking with the manual process that you have been using since the 00s would have been a whole lot better.