In manufacturing, efficient payment automation processes are essential for maintaining smooth operations, preventing delays, and fostering strong supplier relationships.
An industrial machinery manufacturer in the Pacific Northwest leveraged Priority’s payment automation platform, CPX®, to streamline its payment processes, resulting in significant efficiency gains and multiple business benefits.
The company faced serious challenges with its accounts payable processes, especially during the pandemic:
- Manual Check Payments: All payments to suppliers were sent as checks. This process was especially cumbersome during remote work, requiring physical signatures before checks could be issued.
- Inconsistency and Delays: The reliance on manual processes led to inconsistencies and delays in payments.
- No Existing AP Solution: There were no automated AP solutions in place, making the payment process inefficient and time-consuming.
In 2022, the manufacturer selected CPX®, powered by Priority, as its AP solution. CPX® eliminated physical checks by sending virtual card payments to suppliers. More importantly, CPX® ushered in a host of benefits:
1. Improved Supplier Relationships
Manual payment processes are time-consuming and prone to errors, leading to delays and inefficiencies. Automated payment systems can handle approval workflows and payment execution seamlessly, ensuring that payments are made accurately and on time.
After the manufacturer introduced CPX®, it was able to reduce its payment time by 85%. This significant reduction in time has greatly advanced the company’s automation goals. Its AP team receives a daily custom report to reconcile cash. The accuracy and efficiency achieved by implementing CPX® has solidified the team’s confidence in payment automation.
2. Automated Payment Processes
Manual payment processes are time-consuming and prone to errors, leading to delays and inefficiencies. Automated payment systems can handle approval workflows and payment execution seamlessly, ensuring that payments are made accurately and on time.
After the manufacturer introduced CPX, they were able to reduce their payment time by 85%. This significant reduction in time has greatly advanced their automation goals. Also, the AP team receives a daily custom report to reconcile cash. The accuracy and efficiency achieved by implementing CPX have solidified their confidence in payment automation.
3. Monetized Routine Payments
One of the primary ways CPX® helps monetize payments is through rebate programs. By utilizing virtual card and other electronic payment methods, businesses earn rebates on supplier payment transactions. These rebates provide a direct financial benefit, turning routine payment processes into revenue-generating activities.
With the rebates earned through CPX®, the manufacturer was able to implement an AP robot program to further enhance workflow efficiency, at no extra cost to the company. And, because of CPX® and the AP robot, it was able to eliminate a part-time position in the accounting department.
For manufacturers aiming to improve efficiency and minimize errors, automating payment processes is a strategic imperative. Advanced payment platforms like CPX® can help manufacturing companies strengthen supplier relationships, streamline payment operations, and monetize routine payment processes. This approach not only reduces labor costs but also positions manufacturers to stay competitive and resilient.
Download the case study here, and contact us to learn more about how CPX® can transform your AP processes.
