How We Helped an E-commerce Retailer Reduce AP Processing Costs by 50%

A fast-growing e-commerce retailer was struggling with a growing pile of vendor invoices. With over 500 invoices monthly from 200+ suppliers, their small finance team was overwhelmed. Late payment penalties were mounting, and they were missing early payment discounts worth thousands of dollars annually.

The company approached Wired Back Office for a complete accounts payable transformation. Our goal was to streamline their AP process, eliminate late fees, and provide real-time visibility into their cash flow obligations.

The Challenge

The retailer's manual AP process involved paper invoice receipt, manual data entry into QuickBooks, disjointed approval workflows via email, and check runs that often missed payment deadlines. Key challenges included:

• Average invoice processing time: 12 days
• Late payment fees averaging $2,500 per month
• No centralized vendor management system
• Difficulty tracking payment status and cash flow projections

Our Solution

We implemented a comprehensive accounts payable solution tailored to their business:

• Invoice Digitization: All paper and email invoices captured and digitized within 24 hours
• Automated Approval Workflow: Custom approval routing based on invoice amount and category
• Three-Way Matching: Automated matching of purchase orders, receipts, and invoices
• Scheduled Payment Runs: Optimized payment calendar to capture early payment discounts
• Real-Time Dashboard: Live view of AP aging, cash requirements, and vendor status

The Results

Within 90 days of engagement, the retailer saw dramatic improvements:

• 50% reduction in AP processing costs
• Zero late payment fees for 6+ consecutive months
• $18,000+ captured in early payment discounts annually
• Processing time reduced from 12 days to 2 days on average
• 100% visibility into cash flow obligations

The client has since expanded their engagement with us to include accounts receivable and management reporting, further streamlining their financial operations.

Ready to achieve similar results for your business? Contact us for a free AP process assessment.