Manufacturers are no strangers to operational challenges. Complex supply chains, fluctuating material costs, and tight margins create constant pressure. One area where these challenges often show up is in the accounts payable (AP) process. Accounts payable is a vital part of manufacturing operations. Invoices, supplier payments, and financial accuracy directly impact your bottom line.
If you're still using a traditional, manual AP process, you're likely eating up valuable time and resources — and creating delays that can derail your entire workflow. But by automating your AP process, you can transform your operations and boost your team's productivity. AP automation offers faster, more efficient invoice processing — so your team can focus more time on other essential tasks.
The question is: How does your AP process compare to others in the industry? And what can you do to overcome these business operation challenges to keep your manufacturing business running smoothly?
Let’s dive into the data:
1. Invoice Exceptions
STAT: A staggering 51% of mid-market manufacturers report invoice exceptions as a top challenge.
Invoice exceptions — like mismatched data or missing details — can throw a wrench in your entire operation. These errors not only slow down your payment cycles, but can also lead to costly late fees or pentalties.
If your team is constantly battling exceptions, you should consider it a sign that your current process needs a revamp.
Automating your AP workflow can greatly reduce these errors. AP automation solutions help you catch catch discrepancies early by validating data in real-time. The result? Fewer exceptions, faster payments, and a smoother end-to-end AP process.
2. Invoice Payment Approvals Taking Too Long
STAT: 48% of manufacturing companies struggle with lengthy invoice payment approval processes.
Long approval workflows can give you more than just a headache — they can also have a negative impact your bottom line. When approvals drag, you risk missing out on early payment discounts, which could save you money over time.
Additionally, delays can strain your relationships with suppliers who rely on timely payments.
By automating your approval process, you can streamline things with rule-based routing that ensures invoices land on the right desk, at the right time. Automation removes bottlenecks, speeds up approval timelines, and keeps your suppliers happy.
3. High Invoice Processing Costs
STAT: 34% — or more than one third — of mid-market manufacturers are concerned about high invoice processing costs.
Manual invoice processing is not just time-consuming — it’s expensive. With hundreds, or even thousands, of invoices to process each month, manufacturers can easily find themselves spending too much on things like staffing, fixing errors, and paper supplies.
Automating your AP process can turn things around by reducing the manual work involved and improving accuracy across the board. This doesn’t just lower costs; it also streamlines your team's overall productivity — and boosts your bottom line.
4. Working Remotely
STAT: Over a quarter of manufacturers (26%) find the need to adapt to remote work environments challenging.
The shift to remote work has been a major hurdle for many AP teams, especially those relying on outdated, paper-based processes. If your team struggles to keep things moving smoothly while working remotely, it’s time to consider new solutions.
AP automation allows your team to operate from anywhere by giving them secure, cloud-based access to invoices and payment systems. This not only supports a distributed workforce but also ensures consistency across your team — no matter where they're located.
Benchmarking Your AP Process
Understanding the key challenges facing the manufacturing industry is just the beginning. Now it's time to benchmark your AP process against these industry standards. Start by asking yourself the following questions:
- Are invoice exceptions a common issue in your AP department? If the answer is yes, it's time to explore automation solutions that offer intelligent data capture and validation.
- Is your approval process causing delays? Streamlining your approval workflows using automation can significantly reduce processing times.
- Do you have a handle on your invoice processing costs? AP automation can help you save money and improve cash flow by saving your team time and helping them focus on other strategic tasks.
- Can your AP team effectively work in a remote or hybrid work environment? If your team's tied to the office because of a manual process, you may want to consider technology that digitizes the AP processes.
Addressing Operational Challenges in Manufacturing
For manufacturers, operational challenges are often tied directly to AP inefficiencies. Nimbello is designed to address these challenges head-on, offering a scalable solution that grows with your needs. Our AP automation solutions streamline your AP process, helping reduce errors, and improve overall efficiency.
Here’s how Nimbello helps manufacturers overcome AP-related challenges:
- Nimbello watches for new invoices and processes them automatically, so you never lose another invoice.
- Nimbello pairs each invoice to purchase orders with touchless, multi-line authentication.
- Nimbello helps you reduce payment delays with a configurable dashboard to quickly view the status of each invoice.
- Nimbello allows you to increase processing speed with automatic processing and rapid corrections to triple the processing rate per employee.
- Nimbello connects your account payable process and ERP system to seamlessly pair vendor and invoice data.
The Path to a More Efficient AP Process
Manufacturing will always come with challenges, but your AP process doesn’t have to add to them. By embracing automation, manufacturers can streamline their AP processes with ease. With Nimbello's AP automation solutions, you can overcome the operational obstacles that hold you back — so your business can keep moving forward.
Book a demo and learn how Nimbello can improve your accounts payable workflow today!