Aside from customer loyalty, a good supplier relationship is critical for running smooth day-to-day operations as well as to sustain the long-term growth of a business. From a finance and accounting perspective, paying the suppliers on time and accurately is important to build trust with suppliers.
Establishing a symbiotic relationship with suppliers allows your business to save money from trade credit, and enables you to have your goods and services on time, allowing you to make strategic decisions for your products, and gain a competitive advantage in the market.
We’ve gathered some of the tips that will help you establish a solid relationship with your suppliers through effective and efficient accounts payable function.
- Know Your Suppliers
- Improve Accounts Payable and Procurement Coordination
- Follow “No PO, No Pay” Policy
- Outline a Dispute Management Process
- Improve Invoice Accuracy
- Conduct Periodic Vendor Master Maintenance
- Use Real-Time Analytics for Decision Making
- Use the Right Tools
There are more ways to win over your supplier through effective accounts payable functionality, but the steps mentioned above are a good place to start and are very useful tips that can help you manage your accounts payable more efficiently and effectively.