With the global supply chain experiencing profound disruptions in an era of rising inflation, relationships with suppliers are more important than ever. Unfortunately, those relationships are nearing a breaking point for many organizations as suppliers struggle to fill orders and payments are delayed.
The increasing cost of supplies isn’t the only thing that can hurt operations during inflation. Without the right AP processes in place, organizations can put significant strain on supplier relationships to the point where they dissolve. This is perhaps most evident when organizations opt to outsource their AP function entirely. (More on this in a bit.)
At the end of the day, accounts payable (AP) holds a lot of power to either improve or hurt supplier relationships for one simple reason. The department controls what suppliers care about the most: getting paid on time.