Payments are what shape the multitrillion-dollar B2B landscape. Agreements are what shape those payments.
Bill360 announced this month, for example, that it is launching new features designed to ease payments for buyers. The company is letting buyers choose whether they want to make or schedule payments through a client portal or pay directly from an invoice email, and download a PDF version of an invoice directly from their email. This streamlines agreement management workflows.
Once a manual, often lengthy process, agreement and vendor lifecycle management is being reshaped by advanced technology, particularly artificial intelligence, digitized payments, and accounts payable and accounts receivable automation.
ProviderTrust and Ntracts, for instance, partnered Oct. 14 to give healthcare organizations visibility into their vendors’ payment eligibility at contracting and throughout contract execution.
These innovations are enabling B2B businesses to handle contracts with greater agility and transparency, fostering more sophisticated, data-driven relationships that go beyond traditional, paper-based contracts. At the core of this evolution are the enhanced efficiency, responsiveness and trust these innovations provide, setting new standards for how agreements are negotiated, monitored and executed.
Read also: OCR’s Key Role in Scaling Paperless Invoicing and AP/AR Automation
To get a sense of the scope and complexity of vendor management, consider that joint guidance from the Federal Deposit Insurance Corp. (FDIC), Office of the Comptroller of the Currency (OCC) and Federal Reserve lists 17 items about contractual controls that govern third-party vendor relationships. Complexity reigns, which can create friction.
The PYMNTS Intelligence report “Automating Accounts Payable for Cost Savings“ found that 34% of businesses process more than 5,000 invoices per month, each tied to various agreements. Absent the assistance of digital tools, the sheer volume of an AP/AR department’s to-do list can leave many employees drowning in paperwork.
Agreements govern terms, set expectations and mitigate risks between businesses. In sectors where partnerships are built on precise terms and high-value transactions, agreement management must be accurate, compliant and accessible. Traditionally, these agreements have been mired in paper trails and manual oversight, making them susceptible to human error, delayed approvals and versioning issues.
However, by using digital solutions, companies have control over the complexities of their agreements, from drafting and negotiation to monitoring compliance and facilitating payments.
Digital payment platforms allow companies to track incoming payments, calculate dues instantly and update agreements based on real-time financial status. By providing a clear, updated picture of cash flow and outstanding invoices, businesses can eliminate friction and promote faster, seamless transactions.
Payments are now more frequently tied directly to contract milestones. When a service milestone is completed, the payment can be automatically triggered through the digital system, enhancing transparency and accountability for both parties. The feature is especially valuable in long-term projects, where payment schedules and project deliverables are often closely intertwined.
See also: How RPA Makes AP/AR Automation More Accessible for Small Businesses
AI stands at the forefront of agreement management’s transformation. AI’s capabilities extend from natural language processing to machine learning algorithms that analyze and learn from agreement data, unlocking new efficiencies in several ways.
In May, for example, Zilliant integrated AI across its pricing lifecycle management solutions.
AI can help optimize each stage of the contract lifecycle, tracking renewal dates, compliance checkpoints and payment schedules. Automating these reminders and updates allows companies to avoid missed deadlines, enforce penalties when necessary and adapt to evolving client needs. AI-driven tools also provide real-time insights into contract performance, which can guide strategic decisions and adjustments.
AI and digitized payments are laying the foundation for more dynamic, responsive relationships between B2B companies. This shift is helping firms move away from static, one-size-fits-all agreements toward arrangements that are adaptable to both parties’ evolving needs.
As AI and digital payment platforms continue to advance, agreement management in B2B will see improved contract drafting, monitoring and renewal.
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