The manufacturing and distribution industries have been forever changed by a pandemic that's created both challenges and opportunities. Supply chains have been disrupted, for example, while demand has surged for a variety of products.

As manufacturers and distributors consider new opportunities, embracing automation will be key. It gives them a competitive advantage over competitors that are still using manual processes. Automation can help improve back-office efficiencies, increase cash savings, decrease costs and increase security against fraud, according to Tom Harmon, president of Commerce Bank in St. Louis. Manufacturing and distribution customers are especially interested in increasing efficiencies these days so they can save money and better serve their customers.

Taking burdens off employees

Many manufacturers and distributors are facing a number of pressure points now, Harmon said, including dealing with the personal challenges their employees are facing, working to prevent COVID-19 on the shop floor, reacting to customer demand that can fluctuate wildly and scaling operations accordingly. Finding ways to take burdens off their employees is important.

The Association for Financial Professionals reports there have been some barriers that have slowed the adoption of new payment technologies -- such as a lack of information technology resources and difficulty convincing business partners to shift toward different ways of receiving payments -- but some are more willing to change during the current health crisis, Harmon said.

One way businesses automate is by working with a bank that can take on their accounts payable and receivable processes through the use of an online payment hub. The hub interfaces with the company's existing accounting system and creates an integrated and automated payment strategy that saves time and money.

From a single payment file, suppliers can be paid by their preferred method. The solution also creates a reconciliation file that goes back to the company, simplifying the reconciliation process. Real-time reporting shows the status of all suppliers and payments through the portal and gives the company an instant look at its cash position, which improves cash management.

Whether you're looking to earn additional revenue through electronic payment types or completely automate your AP/AR processes, our consultants at Commerce Bank will be there to guide you through every step along your payments journey.