Prior to using BravoTran, our customers were realizing 18.5% gross margins per shipment. After using BravoTran for one year, that had increased to 23.0%, a 4.5% increase.

Where did these margin gains come from? Speaking with our customers, we found this resulted primarily from (a) a more centralized, standardized, and auditable AP process, and (b) the better accruals that resulted from it.

Getting invoices out of operators’ inboxes and into a single automated process means that operators are no longer in a see-invoice-pay-invoice mindset. Fully automating invoices that match your accruals means that much more attention can be placed on discrepant invoices. Exceptions from agreed rates can be closely reviewed and disputed.

The implication is that your vendors are probably routinely overcharging you. Few will be surprised by this, but what may be surprising is the extent to which operators are going along with these overcharges. In the moment, it is often simpler to just approve the discrepancy than to dispute the invoice. Exposing that process to scrutiny is the first step toward higher margins.

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This is the first post in a series. The next will discuss another non-labor advantage to payables automation: Getting invoices posted faster. Follow us on LinkedIn to get notified when it’s published, or book your own BravoTran demo today.