P2P,Payments,Rebates,Discount's Optimization and benefits for organizations

• AI business automation can benefit procure-to-pay and payment processing in several key ways:

• A company with an accounts payable balance of $100 million that takes advantage of a 1% early payment discount would save $1 million annually. So, the savings for discount optimization are significant, even for businesses with large accounts payable balances.
• Negotiate better terms with suppliers.
• Set up a tracking system for tracking discounts. This will help businesses ensure they take advantage of all available discounts.
• Automated invoice processing - AI can extract critical details from invoices like amounts, dates, PO numbers, etc. This reduces manual data entry and speeds up the processing and payment of invoices.
• Predictive analytics - AI can forecast future cash flow needs by analyzing historical data and patterns. This allows better planning to ensure sufficient funds are available.
• Contract analysis - AI can scan contracts to identify terms like payment due dates, early payment discounts, and volume-based rebates. It can then optimize expenses or surface rebate opportunities.
• Anomaly detection - Machine learning algorithms can detect abnormal invoice patterns like duplicate payments or fraudulent changes to vendor details. This increases compliance.
• Dynamic discounting - AI tools can negotiate short-term discounts with suppliers based on cash flow availability. This generates working capital for buyers.
• Automated approval workflows - Invoice and payment details can be automatically routed to approvers based on spend thresholds and policies, avoiding bottlenecks.
• Vendor portal - Suppliers can directly upload invoices and track status, enabling touchless procure-to-pay. AI bots can handle vendor inquiries.

Technology solutions like IBM Process Mining are one that every organization must have if they want to invest safely to make significant improvements in departments such as P2P, AP, AR, HR, Marketing, etc. The ROI is guaranteed, and the payback period is really short.

AI delivers increased process efficiency, insights, visibility, control, and cost savings across the procure-to-pay process from POs to payments and reconciliation. It's a vital tool for optimizing cash flow and working capital.

By improving cash flow, businesses can increase their financial flexibility and make better financial decisions.