Rolling with the punches: Accounts Payable for resilient supply chains

The economic volatility and supply disruptions of the past few years have brought far-reaching changes to supply chain management. The result is that the stability and transparency of supply chains have emerged as top priorities and strategic assets for many firms.

Accounts Payable functions have the ability to shape and fortify the crucial connections that build resilient commercial ecosystems. Yet, what actions can Accounts Payable teams take to improve the management of supply chains? Furthermore, how can they leverage new tools and perspectives to build real supply chain resilience?

As more firms focus on nurturing robust supplier relationships, fresh perspectives on supply chain management are emerging. Buyer and supplier pain points are oſten shared through different lenses in the organization. With a holistic approach to supply chains, companies are increasingly offering value-added services to suppliers as part of a business strategy.

For Accounts Payable teams, the selection of payment mechanisms and systems can add value for suppliers through timing and a range of payment options. Checks have historically been a simple payment solution for many suppliers because they are aligned with traditional processes. However, payment methods have emerged that offer opportunities for process efficiency and digitization. Along with data, these tools can enable and empower the right suppliers to grow as your business grows.

There is no one-size-fits-all solution. Supporting the needs and health of suppliers at various points of their digital journey requires adaptability and optionality.

The role of Accounts Payable teams in nurturing resilient suppliers cannot be understated. With new perspectives and a coordinated strategy, Accounts Payable and the payment systems and tools they employ can foster the health of suppliers. By supporting growth and digital adoption, they enable the whole supply chain to meet future business needs. The insights from supply chain transparency and accounts payable data also speed up decision-making so that smaller suppliers can weather volatility and uncertainty.

While digital payment adoption may face some hurdles, the opportunities for data, insightful business decisions, and higher levels of automation are significant. At the end of the day, accounts payable and receivable are different sides of the same coin, using the same data. Therefore, an investment in accounts payable systems and tools should lead to improvements and value-added capabilities that are shared with suppliers.

Achieving ambitious aims for supply chain integration will require partnering with suppliers to truly understand and address their pain points and needs. It will also require the right technology and payment partners. Bank of America’s comprehensive payment solution offers a growing network of over one million suppliers, along with the payment, remittance and data tools to automate, streamline and secure your supply chain.

Our comprehensive payment network also allows your suppliers to access a global network of buyers and digitization capabilities through a single point of access. This single source for automation can give them the ability to rapidly scale their digital adoption and seamlessly tap into new growth opportunities.

Speak to your Bank of America relationship manager to understand how our comprehensive payables solutions can help your Accounts Payable team adapt to whatever may come and empower your businesses to excel through resilient supply chains.