The world today is reeling from a pandemic of a proportion that has never been seen before. And, the one sector that needs to carry on relentlessly even during such difficult times is healthcare. While quality is their highest priority, there are several other intricate aspects such as accounts payable (AP) that must be taken care of, to ensure a smooth process.
The medical equipment manufacturing sector plays a crucial role in enabling healthcare professionals to do their job efficiently. To provide those tools, they want to streamline all their business processes to enhance their supply chain. They are continuously under pressure to improve efficiency and decrease costs, among other things. Just like for other industries, technology is here to help them as well.
In this article, we will be focusing on how an AP automation solution can support the medical equipment manufacturers. At To-Increase, we understand the top challenges that medical device manufacturers face. Our experts believe that our accounts payable automation can help them immensely.
Let us find out how accounts payable automation will help medical equipment manufacturers.
How will automating accounts payable help medical equipment manufacturers?
Here are some of the aspects of medical equipment manufacturing that AP automation can help with:
Ensure improved relationships with suppliers
A critical requirement for medical device manufacturers is to be supplied with the finest quality components in the right quantities. AP automation can help with this by ensuring a good rapport with suppliers with timely payments.
Once the suppliers have an assurance that they can send supplies and bills for payments without the need to always follow up, the purchase process becomes smoother, and the supply of quality components can be ensured.
Provide the means to keep costs down
Once you have accounts payable automation in place, the issues related to manual processing of invoices, lost paperwork, missed payments, errors in the amount to be paid, etc., are removed. A largely touchless invoice processing, mobile invoice management, and two-and-three-way matching processes ensure that payments go on time.
When you pay your suppliers and vendors on time, you can negotiate for substantial early payment discounts and are in a better position to bargain for excellent terms. All these factors can help you keep the cost of medical device production lower.
Offer paper trails to meet audit and regulation requirements
One of the banes of any industry, especially one as complicated as the medical device manufacturing, is the audit and compliance requirements you are required to meet. With accounts payable automation, the “paper trail” for your purchases is automatically present in the system.
This not only has details of costing and approvals but also includes that of the supplies you sourced, which includes the quality data related to the supplies. All this paperwork makes it easier for the medical device manufacturer to meet the audit and regulation requirements.
Control non-core spending and improve cash flow
Today companies, are looking at ways to curb spending that is not connected with their core business. The e-procurement module will help you simplify your request process, allowing you to curb indirect expenditures and help you regulate your cash flow.
Another aspect is that accounts payable automation helps regulate the flow of payments that you make by ensuring that you pay invoices on time. Doing this ensures that you can avoid a situation where you are not faced with a considerable amount to be paid out because you had no control over your invoice processing.
Here’s what you need to do next
From the above points, it is clear that now is the right time to automate your accounts payable to improve focus on your core business, ease worries about invoice processing, and regulate cash flow.
Given below are some next steps that can help you select the right accounts payable automation solution:
- Review how you are managing accounts payable at present
- Talk to your finance and IT people on the requirements they have
- Make a checklist of features that you need in your accounts payable automation solution
- Calculate the savings you will realize from automating accounts payable
- Talk to solution providers and check on testimonials
- Convince your top management about the merits of automating your accounts payable function