Your procurement team has been hard at work scouting and onboarding vendors that can take the company to the next level. However, it’s the AP team that keeps these relationships on firm foundations. Late payments can strain or even destroy otherwise positive supplier relationships – even if the cause is due to a small error. And errors are common. Due to manual processes, AP staff end up spending up to three hours a week or more correcting errors and other issues. At the same time, time-consuming processes often prevent AP teams from capturing early payment discounts. The key to stronger vendor relationships is an efficient AP process.
How can AP support stronger vendor relationships?Positive vendor relations can ensure that the internal supply chain runs smoothly and securely. A disorganized approach to supplier management can result in openings for fraud, while also reducing trust and increasing friction between suppliers and the company. The AP team is on the front line of supplier relationship management. Ensuring that a vendor is paid on time, every time is the best way to keep the supplier relationship in good standing. And there are many ways a accounts payable department can keep vendor strong supplier relationships. But the top three ways AP teams can truly build long-lasting relationships are through three factors: