AP Innovation Expected to Improve Relationships with Vendors

There’s no reason merchants shouldn’t be able to communicate well with their vendors, but aging accounts payable systems can make these critical interactions a headache.

A PYMNTS study found that poor communication with vendors and service providers was the number one challenge cited by online marketplaces looking to modernize their accounts payable (AP) systems. This is also the challenge that the marketplace is most likely to consider the most important. After all, marketplace vendors embody the brands of many consumers.

Other vendor complaints include an inability to keep clients informed of product shipment progress, customer complaints, and payment status. The rapid growth can be particularly frustrating for online merchants, where 98% of industry executives say they plan to increase AP volume over the next three years. This growth rate could be threatened, as 82% of online marketplaces said their business expansion would be at least partially or slightly hampered if they could not cope with projected growth in AP volume.

According to 54%, automation is key to addressing this explosive volume growth, with online markets using legacy or unmodernized AP systems struggling to keep up with exponential growth. This is the root cause of poor vendor communication. The potential benefits of modernization through automation are clear. 70% of the market expects vendor relationships to improve as they innovate their AP platform, which could directly limit their growth expectations, especially when it comes to payment processing speeds.

Efficient communication is essential for markets to grow at a healthy rate and maintain productive relationships with those who move them. As a result, marketplaces need to provide their clients and suppliers with important information such as transaction details, returns, promotions, inventory, fulfillment details, and product performance. Given these factors, finding a responsive AP automation partner is critical to the seamless processing and fulfillment of consumer purchases.

Luckily, online marketplaces give you options when deciding on an AP automation partner. For example, last week, Nimbello, a provider of buy-to-pay cloud software for AP professionals, announced that it is helping companies scale their operations, strengthen their vendor supply chain, increase efficiency and profit. announced the launch of his AP automation solution for enterprises, with the goal of Spending Insights.

A day earlier, New York-based fintech Metaprize Banking introduced a B2B payment tool for entrepreneurs and small businesses. It allows freelancers, retailers, and others to receive payments via multiple options, generate online invoices using links within the platform, and request and receive payments.

Not all of these developments took place in 2023. Late last year, cloud software provider SutiSoft introduced an upgraded version of its AP solutions software, SutiAP. New features in the program include options to print multiple invoices at once, select multiple cost codes, and generate expense reports based on search criteria. The program also offers tools designed to automate manual workflows.

Clear communication between stakeholders is essential in any business, but this is especially true when it comes to partnerships involving vendors and marketplaces. A modern and automated AP system is essential to sustaining these critical relationships and maintaining the ability to scale. Finding the right automation solution can therefore help marketplaces maintain productive and professional relationships with their clients, suppliers and, in turn, customers.

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