Why AP optimization programs fail—and how to fix them

Is your organization under constant pressure to increase productivity, reduce costs, and improve efficiency? Many Accounts Payable (AP) teams face the same challenges. To achieve these outcomes, optimization programs are often designed, promising to deliver results by automating invoice processing, improving compliance, and analyzing data. Yet, many AP optimization programs fail to meet expectations. 

So, why do these programs fail? And more importantly, how can organizations avoid common pitfalls to ensure success? Let’s explore the reasons behind AP optimization program failures and outline actionable steps to address them.

What is an AP optimization program?

An AP optimization program is a structured initiative that compounds a set of strategies and tools designed to improve the accounts payable processes within an organization. By leveraging technology, process improvements, data insights and strategic collaboration, the program aims to reduce costs, enhance accuracy, ensure compliance, boost productivity, build stronger vendor relationship, improve decision-making, and more, resulting in better financial performance. 

Common stages and steps in an AP optimization program: 

• Assessment and planning: Start by thoroughly analyzing current AP flows to pinpoint inefficiencies and challenges. Define clear objectives, such as reducing invoice processing time or increasing automation levels. Engage stakeholders across finance, procurement, and IT to align on goals and priorities, ensuring everyone is working toward the same outcomes. 

• Design and standardization: Create standardized flows for invoice receipt, validation, approval, and payment processes. Develop clear policies to address exceptions, disputes, and vendor inquiries, ensuring consistency and minimizing delays across the board. Validate these findings internally across multiple departments to ensure alignment on the outcomes of a potential new way of working. 

• Technology selection and implementation: Identify and implement an AP automation tool that aligns with your organization’s needs, such as invoice scanning, AI-based matching, and ERP integrations. Ensure these tools are properly configured and seamlessly integrated with existing systems to optimize performance. The global adoption of a single standardized tool is highly preferable. 

• Change management and training: Effectively communicate the program’s goals and benefits to all stakeholders to build support and understanding. Provide hands-on training for AP staff and other affected teams, equipping them with the skills and knowledge needed for smooth adoption of the new processes. 

• Monitoring and continuous improvement: Leverage dashboards and reporting tools to track key performance indicators (KPIs) such as cycle time, error rates, and cost savings. Regularly review and refine processes based on data insights and feedback from users, ensuring continuous improvement and sustained success.

Key stakeholders in an AP optimization program: 

The success of any AP optimization program relies heavily on the involvement and collaboration of key stakeholders. Each group brings unique perspectives, expertise, and responsibilities that are crucial for driving the program forward and achieving its objectives. Below, we outline the critical stakeholders: 

• Accounts Payable team: Leads the execution of day-to-day processes and provides insights into pain points and needs. 

• Finance leadership: Ensures the program aligns with organizational goals and secures funding. 

• Procurement department: Collaborates on vendor management and purchase order flows. 

• IT Team: Facilitates seamless integration of the automation tool with existing systems while ensuring data security. 

• Vendors and suppliers: Participate in the transition to new processes, such as e-invoicing and self-service portals. 

• Compliance and audit teams: Ensure adherence to financial regulations and internal policies. 

By involving the right stakeholders and following these stages, an AP optimization program lays the foundation for sustained efficiency and success. 

With the framework for an Accounts Payable (AP) optimization program in place—covering its key drivers, steps, and stakeholders—it’s important to address a crucial question: why do these programs sometimes fail to deliver the expected results?

Recognizing and understanding the common obstacles is the first step toward overcoming them. By identifying potential obstacles and proactively addressing them, organizations can pave the way for a successful AP optimization journey and establish a sustainable cycle of continuous improvement. Let’s explore these challenges and how to avoid them. 

Why AP optimization programs fail 

The complexity is underestimated

At first glance, AP optimization might seem straightforward—standardize workflows, adopt automation, and eliminate inefficiencies. However, the complexity of AP processes, which often span multiple departments and systems, is frequently underestimated. 

As a result, teams implement tools or workflows without accounting for dependencies like procurement, vendor communication, and compliance requirements. The program falters when these elements are misaligned. 

To avoid such outcomes, AP teams should identify all stakeholders and systems involved in invoice processing and thoroughly analyze the new process before launching the program. 

The "set it and forget it" mindset

Many AP optimization programs are often treated as one-time projects rather than ongoing initiatives. Teams focus heavily on implementation but neglect continuous monitoring, resulting in missed opportunities to identify and address bottlenecks or inefficiencies. Reporting is often insufficient, further compounding the issue. 

As a result, over time, these programs stagnate and become outdated as business needs evolve. This lack of active engagement causes the program to lose relevance, eventually necessitating the creation of a new initiative altogether. 

To prevent this, AP optimization must be approached as a continuous journey of improvement. Establishing a feedback loop to gather input from users and stakeholders ensures the program remains dynamic and aligned with evolving needs. This can be achieved by scheduling regular reviews to assess performance and make necessary adjustments, as well as actively communicating progress and results to maintain visibility and support. 

Insufficient resources 

AP optimization demands financial investment, time, and skilled personnel, yet many organizations fail to allocate adequate resources, leaving teams overwhelmed and underprepared to execute the program effectively. Common challenges include insufficient budgets for technology upgrades or training, limited time or knowledge to support the program, and a lack of tools to achieve desired outcomes.

To address these issues, AP teams can take several proactive measures: secure executive buy-in to ensure adequate funding, assign a dedicated project team to oversee the program, seek external consulting assistance for expert guidance, and invest in AP automation solutions to streamline processes and achieve greater efficiency. 

 Resistance and failure to change 

Resistance to change often stems from a reluctance to move away from familiar flows. Low adoption rates and a persistent reliance on manual processes can significantly undermine the potential of an AP optimization program. 

On an enterprise level, failure to adapt is equally detrimental. Business needs, regulatory environments, and technologies are constantly evolving. AP optimization programs risk becoming outdated or ineffective when they cannot keep pace with these changes. 

To address these challenges, AP process improvement leaders must develop a comprehensive change management plan. This includes preparing the organization by communicating the benefits of AP optimization early and consistently, fostering an understanding of its long-term value. Additionally, providing thorough training and ongoing support is crucial to building confidence and trust among stakeholders, creating a culture that embraces improvement and adapts to change effectively. 

Lack of benchmarking and success metrics 

Without clear benchmarks and success metrics, measuring progress or identifying areas for improvement becomes nearly impossible. This highlights the importance of defining key performance indicators (KPIs) such as invoice cycle times, error rates, and automation levels. In this blog, we discuss the most relevant KPIs for AP teams to help you get inspired and set meaningful goals. 

Additionally, benchmarking your performance against industry standards or your organization’s previous results can not only demonstrate success but also enable more detailed and effective monitoring. As emphasized earlier, continuous monitoring is crucial for achieving and sustaining success. 

For instance, when using Cevinio AP Automation and its powerful Analytics Suite, you can harness dashboard insights to track KPIs and make data-driven decisions that contribute to ongoing optimization and efficiency.

Conclusion 

AP optimization programs can transform financial operations, yet many fail due to underestimated complexities, inadequate resources, and resistance to change. Success requires a holistic approach—combining clear goals, robust processes, and continuous improvement to ensure long-term efficiency and cost savings. 

At Cevinio, we specialize in helping organizations achieve their AP optimization goals with cutting-edge automation tools, advanced analytics, and expert consulting. Our solution is designed to address the root causes of AP inefficiencies, enabling your team to focus on strategic initiatives rather than manual tasks. Contact us to learn more and take the first step toward unlocking your organization’s potential.