How Document Management Benefits Accounts Payable: Managing Vendor Relationships

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Managing vendor relationships includes everything from making timely payments to monitoring vendor performance.

Document management software saves time and money by automating labor intensive business processes for accounting and finance departments. In addition to the significant savings that can be realized, there are other significant advantages associated with accounts payable automation, among them improved vendor and supplier management, enhanced employee performance review capabilities, and more efficient transaction verification and audit control. When properly deployed, document management can result in a better, faster and cheaper accounts payable (AP) process. 

Managing Vendor Relationships

Managing vendor relationships is critical to the success of any business. Making timely payments not only takes advantage of early payment discounts, but may also lead to better price negotiations in the future. On the flip-side, eliminating underperforming vendors leads to bottom line gains as well. The use of EDM for accounts payable helps maintain, grow and/or prune vendors.

Having all documentation for a particular vendor in one place at one time can help when making vendor relationship decisions. Key data can be gathered from indexed documents in real-time to create spreadsheets and charts depicting the overall reliability and performance of a vendor without the need to find each piece of paper and input the results into a spreadsheet. Having quick access to vendor performance statistics makes vendor review much easier and therefore increases the likelihood that regular vendor reviews will occur.

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