Accounts Payable (AP) is one of the most important functions within the Pharmaceutical industry. With huge numbers of transactions taking place every day across hundreds of key suppliers, AP teams need to be efficient and reliable.
However, the manual processes still used by many Pharma companies’ AP functions soak up valuable resources. These processes also leave the business vulnerable to financial loss through fraud, duplicate payments and other payment errors. Identifying these problems in global organisations can be extremely tricky.
In this blog, we’re looking at why resolving these issues is so difficult and how Pharma Finance teams can benefit from crossing this hurdle. We’re also going to discuss why it’s important to resolve AP inefficiencies and offer insight into how you can do this by embracing automation.
The hidden bottleneck in Pharma finance
Across Pharma organisations, supplier networks are often vast and specialised, covering everything from niche raw material providers to cold-chain logistics partners. These relationships span currencies and tax jurisdictions, increasing the volume and complexity of transactions.
When teams rely on manual invoice handling and spreadsheets, it’s easy to miss errors, pay duplicate invoices or delay time-sensitive payments, especially when each vendor may have different payment terms, tax rules or compliance documentation.
Workflows are another challenge. It’s common for large Pharma companies to have decentralised AP processes across Research and Development (R&D), manufacturing and commercial divisions. Without standardised workflows or integrated systems, AP teams spend valuable time navigating various procedures and workflows and chasing down information, which can delay payments and frustrate stakeholders.
Finally, ERP silos are common in global Pharma firms, especially those that have grown through acquisition. When Finance data lives in different systems or geographies, AP loses visibility, which increases the risk of payment errors and fraud.
The real cost of doing nothing
Speed and compliance are crucial in Pharma, so neglecting AP comes at a real cost.
Manual, disconnected processes slow down R&D and production by delaying critical vendor payments, such as raw materials for vaccine batches or components for medical devices. These aren’t just financial delays. They can also affect product timelines, trial schedules or even patient delivery. A slower AP output affects more than just business health.
Overpayments and duplicate payments are an age-old problem that won’t go away. These issues can arise in various ways, from manual entry errors to OCR mis-scans during invoice processing. Many companies rely on ERP systems to catch discrepancies, but these systems typically detect only the most basic issues, such as exact duplicate invoice numbers. Without more advanced checks in place, many errors still slip through.
This is why it’s vital for AP teams in Pharma to implement additional controls to proactively prevent duplicate payments and other costly mistakes.
In these errors lies a reputational risk, too. Life sciences suppliers often operate on tight margins and strict delivery timelines. If your AP team delays payments or mishandles invoices, key vendors may deprioritise your business, apply stricter credit terms or escalate complaints.
Modern cures for the AP headache in 2025
Legacy AP processes simply can’t keep up with the demands of today’s Pharmaceutical operations. Many Pharma Finance leaders are turning to AI for solutions and to guide their strategy going forward.
AI-powered automation is already transforming the way some AP teams operate. For instance, you can flag and solve discrepancies in an instant or eliminate them altogether by reducing the opportunity for human error. Automation can also ensure high levels of accuracy when it comes to matching invoices, purchase orders and Goods Received Notes (GRNs).
All this speeds up processes and keeps costs down whilst freeing up team members to focus on other higher-value tasks. Your team can also avoid late-payment fees and unlock early payment discounts.
System integration helps you connect siloed ERP platforms, giving Finance teams a single view of holistic spend. Additionally, analytics-driven tools turn raw data into meaningful insights so you can spot trends, uncover bottlenecks and make confident decisions backed by real numbers.
These aren’t just upgrades. They’re essentials for fast-moving, compliance-heavy businesses like Pharma. Whether you’re scaling production, supporting global trials or responding to regulatory shifts, automated AP tools give your team the visibility and control to do more with less effort and lower risk.
Prescribe a healthier AP process—starting now
Ready to diagnose and treat your AP pain points?
With Xelix, you can automate key Accounts Payable processes that could be costing your organisation millions in payment errors and taking up countless hours of your team’s time.
Our pattern-based detection methods identify hidden threats and errors while minimising false positives, enabling us to detect errors that would be missed by other controls. The platform even offers dynamic interactive dashboards for working capital management, giving you enhanced visibility and accurate Accounts Payable data.
Book a call with the team to find out more.
