What immediate action could a company take to improve supplier payment timelines?

Automating invoice approvals can significantly streamline the payment process to suppliers. This immediate action reduces the time taken for invoices to be processed, as it minimizes manual intervention and potential errors that can cause delays in payments. With automated systems in place, invoices can be reviewed and approved much more quickly, ensuring that payments are made on time.

This efficiency helps maintain good relationships with suppliers by demonstrating reliability in payment practices. Furthermore, automating the approval process can also provide better tracking and visibility into expenses, allowing for improved cash flow management and financial planning. By adopting technology, businesses can enhance their operational efficiency and contribute to a healthier supply chain relationship.

Other options, while they may have their own benefits, do not address the immediate timing of payment processing as effectively as automation does. For instance, negotiating longer payment terms might improve cash flow temporarily, but it could strain supplier relationships. Increasing purchasing limits does not directly impact payment timelines, and hosting customer engagement events is unrelated to the supplier payment process. Thus, automating invoice approvals is the most direct and effective choice to improve supplier payment timelines.