Ap Strategy

Account Payable strategy

Historically the management of accounts payable by financial services organizations has been poor. As cash rich organizations the imperative for tight control on expenses that manufacturing companies apply was not regarded as important This has lead to a number of common themes

  • Inefficient multiple processes in multiple locations
  • Multiple suppliers
  • Loss of purchasing power such as discounts
  • Bad publicity through slow payment of creditors
  • Poor financial control

Recent competitive pressure on margins has forced many of these companies to reconsider the importance of having an efficient accounts payable function. Companies have considered improvements in the following areas:

Cost

  • Multiple suppliers
  • Loss of purchasing power such as discounts
  • Bad publicity through slow payment of creditors
  • Poor financial control

Purchasing

  • Rationalization of the supplier database
  • Loss of purchasing power such as discounts

Financial Control

  • Implementation of purchase orders and good received notes
  • Reviews of authority limits

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