Payable management, the process of managing obligations to suppliers, vendors, and other parties, is integral to efficient business operations. For instance, a manufacturing company must effectively track and pay its suppliers for raw materials to ensure a steady production flow.
Effective payable management is crucial for maintaining healthy cash flow, optimizing supplier relationships, and ensuring regulatory compliance. Historically, the development of enterprise resource planning (ERP) systems has greatly enhanced payable management capabilities, automating tasks and providing real-time visibility.