In today’s competitive manufacturing environment, most process improvements focus on the production line. But what about the back office?

A recent article by MNP makes an important point: sustainable success requires improving all business processes—especially the ones hidden in finance and administration. That includes accounts payable (AP), one of the most overlooked areas with the biggest potential for impact.

What Is Accounts Payable and Why Does It Matter?

Accounts payable is the money a company owes to its suppliers for goods or services it has received. It shows up as a current liability on your balance sheet—and managing it properly is critical for cash flow, supplier relationships, and avoiding late fees.

When AP is handled manually, with paper invoices and email approvals, it’s slow, error-prone, and costly. Delays hurt cash flow, mistakes damage vendor relationships, and finance teams waste time chasing down approvals or reconciling records.

The Typical AP Process (and Where It Goes Wrong)

A standard AP workflow looks like this:

1.     The company receives an invoice.

2.     It’s matched to a purchase order and delivery receipt.

3.     If everything checks out, the invoice is approved and scheduled for payment.

4.     The payment is made and recorded.

But when this is done manually, problems quickly pile up:

·        Invoices are entered by hand into ERP systems, increasing the risk of errors.

·        Approvals get stuck in inboxes or wait on someone being in the office.

·        Paper documents go missing.

·        Finance teams can’t answer basic questions like, “Where’s this invoice now?”

·        And the cost? Manually processing a single invoice can range from $10 to $20.

Multiply that across thousands of invoices per month, and the inefficiency becomes expensive.

Why Manufacturers Are Automating AP

Many manufacturers have started modernizing their AP processes—and they’re seeing real results.

Modern AP automation software and AP automation systems leverage artificial intelligence and machine learning to streamline operations, enhance operational efficiency, and automate accounts payable processes. These automation systems support payment scheduling, offer robust integration capabilities with ERP and financial technologies, and ensure timely payments to vendors. By automating accounts payable and using accounts payable software, organizations can improve the entire payment process, gain better access to payment data, and achieve greater visibility and control over the company's cash flow and overall financial health. Automation also helps manage the company's short-term liquidity and supports the selection of the right AP automation software to meet specific organizational needs.

With the right AP automation solution, you can:

·        Cut invoice processing time by 60–70%

·        Reduce manual data entry by up to 80%

·        Track invoice status in real time

·        Eliminate late or duplicate payments

·        Save up to $15 per invoice

Modern tools use artificial intelligence to capture invoice data, route approvals automatically, detect anomalies, and integrate with your existing ERP system.

A Real Example: How Laurentide Controls Modernized AP

Laurentide Controls, a leading Canadian industrial automation provider, was processing over 5,000 invoices per month, most of which required manual handling and paper-based approvals. Their AP process had a 20-day average approval cycle, which often resulted in delays and inefficiencies.

To solve this, they implemented Process Fusion’s AP automation solution—eliminating paper, streamlining workflows, and gaining full visibility across their AP operations.

The results were immediate and measurable:

·        75% faster invoice processing

·        Over $120,000 in annual cost savings

·        Zero late payment penalties post-implementation

·        Real-time tracking of invoice status

·        Significant improvement in vendor satisfaction

·        No need to increase AP headcount despite growing volumes

By automating AP, Laurentide freed up staff time, improved accuracy, and turned a costly manual process into a strategic asset.

Why AP Is the Ideal Starting Point for Process Improvement

Improving operational efficiency doesn’t have to start on the factory floor. AP is a practical, measurable, and cost-effective place to begin. By automating AP, manufacturers can:

·        Improve cash flow and liquidity

·        Strengthen supplier relationships

·        Reduce processing costs and errors

·        Free up resources for broader process improvements

As MNP put it, “Improving operational processes is one of the fastest ways to increase profitability.” And automating AP is one of the fastest—and smartest—ways to start.

 What to Look for in an AP Automation Solution

A good AP automation platform should offer:

AI-powered invoice capture – No manual data entry
Workflow automation – Automatically routes invoices for approval
ERP integration – Works with systems like SAP, Microsoft Dynamics, and QuickBooks
Payment scheduling – Helps optimize payment timing and improve cash flow
Analytics and compliance tools – Track performance and ensure audit readiness

Why Start with AP on Your Process Improvement Journey 

The MNP article makes a compelling point: “Improving operational processes is one of the fastest ways to increase profitability.” But many manufacturers feel overwhelmed by where to begin.

AP is the low-hanging fruit. It’s measurable, repeatable, and primed for automation. Improving AP processes can also positively impact the cash conversion cycle by reducing the time it takes to turn inventory into cash, and supports better double-entry bookkeeping by ensuring every transaction, such as accounts payable and cash disbursements, is accurately recorded with both a debit and a credit. Accurate purchase order matching within AP further strengthens process improvement by verifying and authorizing payments to vendors, reducing errors and supporting compliance in the procure-to-pay cycle.

By modernizing AP first, you unlock time, talent, and capital—resources that can be reinvested in optimizing more complex business areas.