Recently, automation has proved itself highly useful and effective in the automotive manufacturing industry. Here’s why AP automation is a must for automotive manufacturers.
Accounts Payable automation enables businesses to automate the entire process, cut costs and streamline transactions. Automating the AP process can give human resources enough to focus on more revenue-generating projects. Automation addresses the issues of data accuracy and reliability and increases the quality of the process and the productivity of the company.
AP automation in the manufacturing industry
Recently, automation has proved itself highly useful and effective in the automotive manufacturing industry. The automotive industry generally deals with thousands of invoices coming in from hundreds of suppliers and customers. This can be quite overwhelming. To add up, the industry is facing challenges when it comes to supply due to the strains of the pandemic, the ongoing Russia-Ukraine war, and the rising inflation. Moreover, the global labor shortages have also made it hard to keep up with consumer demand. However, automating the Accounts payable process in the automotive industry can bring many advantages.
Why AP automation is important to automotive manufacturers?
Listed below are some reasons why AP automation is a must in the automotive industry.
The effectiveness of the automotive industry is time-dependent. Time management is therefore essential for the Accounts Payable process.
In the past, the accounts payable process was carried out manually, and bills and invoices would accumulate on desks for days before being entered into the company’s financial database. It eats up a lot of time, wears out the workers, and is error-prone. Especially, in the automotive industry where the supply should be steady and each transaction should be carefully processed, this may have a significant negative impact on the regular flow of your financial services. And the purpose of AP automation is to put an end to this time-consuming project.
Without human intervention, AP automation can enter data, match invoices, and code them quickly, stopping the lag. The employees can save time and use it more effectively to expand their services.
Provides collaborative workspaces
Since automotive manufacturers deal with long lines of suppliers and customers, it is vital to increase the visibility and transparency of the financial processes.
Automation offers a collaborative space where financial teams, suppliers, and customers can work together. This makes, the visibility and openness of the transaction processes are increased by AP automation, which can record transaction data and correspondence throughout the process. The status of the bills for the unpaid purchases and payments can be seen by the staff, stakeholders, and service providers.
The account teams of your automotive manufacturing company and service providers can access the extracted data at any time, from any location thanks to AP automation’s ability to save it on cloud storage. Additionally, they can easily review, change, and analyze the invoice data.
Traditional manual AP processes can be inaccurate in addition to it taking a lot of time. Manual AP procedures may lead to the entry of inaccurate numbers, duplicate statistics and inconsistencies. These issues can jeopardize the value of the transactions. The automotive manufacturing industry cannot afford to have these difficulties.
Due to the automation systems’ ability to detect duplicate payments, track typical errors like inconsistencies, and enable invoice matching, these errors can be reduced by 99 percent. This increases the accuracy of the process.
Additionally, the efficiency you have gained from AP automation might help you draw in additional customers and business partners and foster stronger bonds with your vendors.
Streamlines the process
Since maintaining a steady supply is crucial, as soon as the automotive manufacturers get an invoice, the AP automation program may handle it. Without human intervention, it makes the laborious task of entering data easier. It supports keeping your business’s services streamlined. This improves the interaction between your customers and vendors and has a beneficial effect on the growth of your business.
How can ELIPO help you?
ELIPO is a product of PEOL Technologies that helps you to automate your manual invoice process. ELIPO seeks to bridge the gap between you and your vendors by assisting you with invoice processing procedures while ensuring visibility, accuracy, productivity, and save your time.
Email us at [email protected] for more information.