When done at an average level, the AP function can keep things moving along. When done well, it can operate as a profit center. It takes effort and discipline in the approach, but enforcing consistent processes can benefit many factors which can affect your spend. As you may well know, in an already tough industry like hospitality, the smallest savings can make the biggest difference.
Avoid Erroneous Payments
With so many suppliers, it’s easy to pay a vendor twice accidentally or to pay the wrong vendor entirely. After all, in a hectic accounting workflow, Marcos and Marcus Evergreen Gables can look pretty similar. The AP automation tools platform can automatically alert you about potentially duplicate invoices, while the oversight provided by our approval workflow can help prevent misdirected payments.
When it comes to pricing, volume is your most significant source of leverage. For many in the hospitality industry, there are purchases required across all units. Be it linens, cleaning supplies, or condiments, there are opportunities for unit savings. If locations are independently securing their own suppliers for these types of goods, you could be missing out on substantial cost savings. By consolidating suppliers, your overall purchase volume can have a direct impact on your unit price.
Most industries have some involvement with vendor credits, but for those in the hospitality industry, it’s virtually a daily occurrence. To put a finer point on it, between 25-30% of food and beverage invoices include some form of credit. From spoiled produce and broken safety seals to incorrect wine vintages and the wrong brand of supplies, the sheer variety and value of such credits can add up fast. But unless these are correctly documented, managed, and applied, a massive amount of cost savings could otherwise go unrealized.