Guest contributor |
Less reliable supply chains, economic turmoil and changes in investment tied to sustainability and ethics are all challenges that complicate operations for even the most sophisticated manufacturing enterprise.
To address these challenges, manufacturers are increasingly turning to technological solutions to streamline operations and boost efficiency. In addition, accounts payable (AP) automation is revolutionising how companies manage their finances. By integrating advanced AP automation software like MetaViewer with existing enterprise resource planning systems, companies can dramatically increase productivity and accuracy while reducing costs.
One steel manufacturing company implemented MetaViewer’s AP automation solution alongside its existing Microsoft Dynamics platform and achieved impressive results. Before automation, the AP department processed about 3,000 invoices, but this number rose to 3,600 after implementation, marking a 20 per cent increase. There is also potential for further growth.
Financial visibility also improved significantly. The company’s daily received not invoiced (RNI) report, which tracks accrued payables, initially showed $8 million worth of unpaid materials. After deploying the solution, this figure dropped to just $1 million, indicating significantly improved financial control. Moreover, the company benefited from enhanced accuracy and efficiency. The reduction in the RNI report led to fewer incorrectly vouchered receipts, saving the AP department valuable time while increasing overall accuracy.
These improvements demonstrate how AP automation can transform financial operations in manufacturing. By eliminating manual data entry, reducing errors and accelerating invoice processing, companies can redirect resources to more strategic activities.
There are other benefits too. AP automation enables digital transformation in the manufacturing industry. It provides real-time visibility into financial data, enabling better decision-making and cash flow management. This transparency is crucial for navigating economic uncertainties, meeting evolving sustainability requirements and providing a real-time view of supply chain disruptions.
As manufacturers continue to adapt to changing market conditions, embracing AP automation alongside other technological advancements will be essential to maintaining competitiveness. By modernising financial processes, companies can improve operational efficiency, reduce costs and position themselves for success in an increasingly digital and data-driven manufacturing landscape.
Learn more about artificial intelligence-powered AP automation on the Metaviewer website.
Andy Birkey is marketing communications specialist at Metafile Information Systems
Discover more insights like this in the Autumn 2024 issue of Technology Record. Don’t miss out – subscribe for free today and get future issues delivered straight to your inbox.