How to Negotiate with Vendors: Why AP Automation is Essential

Being adept with the knowledge of negotiating with the vendors is an imperative part of running a business and leading it to success. However not all negotiations will give you desired results, there is always some give or take and intermittently you will also find only cracking certain percentage of the deal in the favour of your business. While this acceptable in many cases in business some negotiations should be in your favour like the one Why AP Automation is essential?

So, if you are considering AP automation as the new direction for your business and are yet to talk to the vendors this blog provides you with some insight.

It is understandable that not all vendors will have the equal knowledge about the emerging tech in business. At the same time Vendors not willing to adopt an arrangement that is untried and opposite to the usual, owing to risk can be common reaction. Therefore, being able to negotiate with them in a justifiable approach is vital.

Why AP Automation is essential? - Reaching out to the vendors.

To begin with even if it doesn't appear so, AP departments may be negotiating with potential or current vendors on a regular basis. Even if they aren't aware of it, everything from down payment and delivery terms to scopes of work and goods production stands as a negotiating opportunity.

AP department often have less-than-ideal payment schedules and terms for goods and services. They might not get the best delivery schedules, either. However, if both the parties come to term with AP automation and automated invoice processing the pressure can be clipped out for greater benefit.

The best way is to start with what it has to offer to the vendors, how AP automation can ease up the process and clear transparency. The three prominent point to stress upon while negotiating with the vendors regarding AP automation can be

• Streamlining the schedule

The timeline involved in the Accounts payable process right from extracting the invoice data to payment spirals and tangles up in delay and reworks. These occurrences can be eradicated with the clever use of the modern solutions of AP automation. The most effective AP automation models like Skyscend offer the businesses with a self-service portal and supports the very requirement of streamlining the process.

• No back-and-forth follow-ups

Have you ever kept a count of the calls your AP team is engaged in for following up on payments. Or calculated the cumulative time spent on these calls and let us also not forget your telecom bills. Everything has a cost and AP automation can do away with all these extra expenditures for both you and your vendors. AP automation portals are mobile friendly for the parties involved to access them easily at the same time most of them come with WhatsApp notification or other such options to keep up with the follow-ups and more.

• Elimination of paper work

We have almost done away with physical records, documentations, keeping contact number books and similar arrangements to go paperless and align ourselves with the digital era. Same goes for the accounts payable process. The snail mail interfering with the timelines, the pile of papers, the missing documents or duplicate invoices are now thing of the past. AP automation and the current provisions of invoice automation are paperless, releasing both the parties from maintaining and preserving a paper record which are conveniently tamper-able.

These are some of the substantial causes you can shoot out to the vendors and negotiate for the requirement of AP automation. However, make sure not to pester them endlessly and make them overwhelmed. To make things easy you can also opt for a demo session which can provide them with clarity on how AP automation actually works.