Accounts payable (AP) is the amount of money a business owes suppliers and is an essential part of working capital. If you optimize accounts payable, the aim is to extend the credit period until the payment of supplier invoices. ​
There are different approaches you can take in optimizing your accounts payable: optimization of payment processes, such as payment run frequency or discounts for early or on-time payments; optimization of the own payment behavior through, for instance, avoidance of early payments; or optimization of payment master terms and application of these master terms. One of the critical factors in optimizing accounts payable is a good relationship with suppliers, as it may get you a more extended period to pay bills.
In the last few months, we have seen how important liquidity is: as the COVID-19 crisis hit, a threat to the survival of many companies surfaced within the first few weeks. More than ever, this shows the importance of working capital management as an existential element to the financial health of your business. Watch our on-demand webinar on working capital optimization.
Issues in Accounts Payables we encounter often.
Up to 40% increase in accounts payable productivity
Up to 75% reduced accounts payable process time
Up to 5% EBIT increase through better payment terms
With AIO Insights, we create the required transparency to reveal areas of improvement, highlighting specific observations in payment terms application, process inefficiencies, and supplier segments.​
With AIO Intelligence, we evaluate improvement concepts using advanced algorithms that enable optimization of accounts payable through supplier segmentation and evaluation of payables scenarios, such as payment frequency optimization.​
With AIO Impact, we initiate, execute and monitor short- to long-term improvement measures that leverage a library packed with best practices, tracking the implementation progress on, for instance, the SKU, supplier, or invoice level.​
In addition to our AIO platform, we offer managed consulting services to optimize your purchase-to-pay process.