This posting in CFO Dive is offered by a Capgemini senior and subject matter expert, who provides some reminders as to the overall benefits of accounts payable automation. The company has a Frictionless Finance offering under which AI.Payables is one of the solutions. Readers of these pages will know about payables automation, which we cover in member research and other ways. The full procure-to-pay cycle is one of the key automation targets of forward-thinking organizations.
‘Let’s take the accounts payable (AP) function. Data discrepancies or errors can be costly – but they are also bad in other ways. For instance, they can be damaging to supplier relationships, and to brand image. They can take up time, too, because those errors are going to need rectifying…
So, it’s not just about money, then. Except, well, maybe it is. Because damage to supplier relationships and to brand image can affect demand, as well as supply – and damage to either can affect sales. Which means money. And fixing those errors isn’t free, either, because as we all know, time is money, too. So, yes. At least as far as AP is concerned, maybe it really is all about money.’
The author goes on to point out the sources of friction in payables that have a predominantly analog processing model, including onboarding, invoice matching, and payments errors. He then goes on to describe a frictionless enterprise that automated payables helps to deliver. Benefits include straight-through processing (cost reductions) and happier clients/partners. A good quick read for those who need reminding of why to move in this direction.
‘Well, it’s true that in accounts payable, everything could indeed be interpreted that way, and it’s equally true that a Frictionless Enterprise approach to finance can help to lower costs, protect sales, and so, ultimately, maintain and even boost margins…
But in fact, and in spite of what I said at the outset, it’s not just about money. Sure, you could measure supplier and customer goodwill in purely financial terms – but this goodwill also has emotional value. It’s good for a business to know it’s doing things right, and it’s good to know that it’s treating people well. It’s good, too, to know that by streamlining processes and removing hassle, it’s also making life better for employees…
Business is about more than money. And the Frictionless Enterprise is about more than efficient processes. It’s about making, and keeping, people happy.’
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group
