4 Ways AP Automation Enhances Just-in-Time (JIT) Manufacturing
3/19/2025 by Andy Birkey
For companies that rely on Just-in-Time (JIT) manufacturing, a strategy focused on reducing inventory waste and increasing operational efficiency, precise timing and seamless coordination across supply chains is crucial. Any delays in procurement or payment processing can disrupt production schedules and impact profitability. And that’s why Accounts Payable (AP) automation solutions like MetaViewer are an essential piece of the production puzzle.
- Reducing Payment Processing Delays and Labor Costs
JIT manufacturing depends on receiving materials exactly when they’re needed—no sooner, no later. Staff must time payments exactly to match production schedules. But, if you are using manual AP processes, this is a huge, costly labor expense that can result in errors that disrupt the JIT system and require large-scale human oversight.
With AP automation, invoices are processed in real time, approvals are streamlined through digital workflows, and payments are scheduled precisely when they’re due. - Improving Cash Flow Management
One of the key advantages of JIT manufacturing is the reduction of excess inventory costs. However, to fully realize these savings, companies must also optimize their cash flow. AP automation provides visibility into outgoing payments, allowing manufacturers to strategically manage expenditures and take advantage of early payment discounts. This creates a more predictable financial environment, aligning cash outflows with the lean principles of JIT. - Minimizing Errors and Fraud Risks
Errors in invoice processing or fraudulent transactions can be costly for JIT manufacturers, where precision is paramount. AP automation reduces these risks by integrating AI-driven data validation, three-way matching, and fraud detection mechanisms. This ensures that only accurate and legitimate invoices are processed, further strengthening the reliability of supply chain operations. - Seamless Integration with ERP Systems
JIT manufacturing operations typically rely on ERP systems to manage procurement, inventory, and production scheduling. AP automation tools like MetaViewer integrate seamlessly with existing ERP platforms, ensuring financial data aligns with supply chain processes. This integration enhances visibility across departments, enabling better decision-making and eliminating silos between finance and operations.
For JIT manufacturers, precision in AP functions is key to success. Want to learn more about how MetaViewer can add precision to your JIT manufacturing strategy? Contact us today!