Forge Biologics Case Study: Scaling AP Automation to Support 200+ Employees and Achieve $80K Annual Savings
Introduction
Forge Biologics is a mid-size enterprise with over 200 employees, operating in a complex business environment that demands efficient procure-to-pay processes. Like many similar companies, Forge Biologics faced common accounts payable challenges such as manual invoice processing, limited scalability, and the pressure to reduce operational costs. These issues slowed payment cycles, increased risks of errors and fraud, and strained vendor relationships.
This AP automation case study explores how Forge Biologics transformed its accounts payable operations by adopting advanced automation and accounts payable AI technologies. The company increased electronic payments to 90%, strengthened vendor relationship management in AP, and achieved $80,000 in annual savings without adding headcount. This transformation delivered measurable procure to pay business outcomes by improving AP process scalability and control.
Organizations aiming to modernize their AP functions will find insights into overcoming typical accounts payable challenges, leveraging agentic AI in accounts payable, and integrating automation with ERP systems for centralized management. The Forge Biologics example illustrates practical steps to enhance efficiency, reduce fraud risks, and support business growth.
Understanding the Accounts Payable Challenges at Forge Biologics
Manual Processes and Operational Inefficiencies
Forge Biologics initially relied on manual, paper-based AP workflows. These processes required significant time to review, approve, and pay invoices. Manual handling led to slow invoice processing cycles, increased errors, and higher operational costs. The lack of automation limited visibility into AP status, making it difficult to manage cash flow or capture early payment discounts. Such inefficiencies are common in enterprises that depend on legacy systems without integrated electronic payments in AP.
Risks of Fraud and Compliance Complexities
Manual accounts payable processes heightened the risk of fraud, including duplicate payments and invoice fraud. Compliance with tax regulations and payment standards across multiple entities added complexity. Without real-time data and automated controls, Forge Biologics faced challenges in detecting anomalies and maintaining audit readiness. These accounts payable challenges increase financial exposure and reduce confidence in AP operations.
Difficulty Scaling AP Operations with Business Growth
As Forge Biologics expanded, its AP team struggled to scale operations using existing manual methods. The volume of invoices grew, but adding headcount was not feasible. The company needed scalable AP process solutions that could handle increased workload without sacrificing accuracy or control. This situation is typical for mid-size enterprises aiming to improve procure to pay business outcomes without proportionally increasing costs.
Leveraging AP Automation to Overcome Challenges
To address these issues, Forge Biologics implemented an integrated accounts payable automation platform. This approach combined workflow automation, electronic payments, and accounts payable AI to enhance accuracy and fraud prevention. The system integrated seamlessly with ERP and financial systems, enabling centralized control and real-time visibility. The adoption of agentic AI in accounts payable allowed the company to automate decision-making steps, reducing manual intervention and accelerating invoice processing.
These improvements helped Forge Biologics overcome operational inefficiencies, strengthen compliance, and scale AP functions effectively. For more on tackling common AP problems, see The Most Common Problems in Accounts Payable & Their Solutions.
1. Understanding the Accounts Payable Challenges at Forge Biologics
Like many growing mid-size enterprises, Forge Biologics faced a critical juncture in their accounts payable operations. With over 200 employees and expanding business operations, the company was experiencing the growing pains common to organizations that have outgrown their initial financial processes but haven’t yet implemented enterprise-grade solutions. The challenges they encountered reflect broader industry trends affecting companies across manufacturing, healthcare, and technology sectors.
2.1 Manual Processes and Operational Inefficiencies
Forge Biologics’ AP department was struggling with labor-intensive, paper-based processes that created bottlenecks throughout their procure-to-pay workflow. Invoice processing required multiple manual touchpoints, from receipt and data entry to approval routing and payment processing. This manual approach not only consumed significant staff time but also created delays that strained vendor relationships and missed early payment discount opportunities.
The company’s growing transaction volume meant that their existing AP team was increasingly overwhelmed, facing the prospect of either adding headcount or risking service level deterioration. Common accounts payable challenges like these often force companies to make difficult decisions about resource allocation and operational priorities.
Processing times for invoices stretched from days to weeks, creating visibility gaps that made cash flow forecasting difficult. Without real-time insights into pending payments and approval statuses, finance leadership struggled to optimize working capital and make strategic financial decisions. The manual nature of these processes also made it challenging to capture and analyze data that could inform process improvements and vendor negotiations.
2.2 Risks of Fraud and Compliance Complexities
Manual AP processes inherently carry elevated fraud risks, and Forge Biologics was no exception. The lack of automated controls and audit trails created vulnerabilities around duplicate payments, unauthorized transactions, and invoice manipulation. With paper-based documentation and manual approval workflows, establishing clear accountability and maintaining comprehensive records for compliance purposes became increasingly complex.
The company also faced challenges ensuring consistent compliance with tax regulations and payment standards across different vendor categories and geographic regions. Common accounts payable problems often include compliance gaps that can expose organizations to regulatory penalties and audit complications.
2.3 Difficulty Scaling AP Operations with Business Growth
Perhaps most critically, Forge Biologics’ existing AP infrastructure couldn’t scale effectively with their business growth trajectory. As the company expanded its operations and vendor network, the manual processes that had worked for a smaller organization became increasingly inadequate. The linear relationship between transaction volume and staffing requirements meant that continued growth would necessitate proportional increases in AP headcount.
3. Leveraging AP Automation to Overcome Challenges
3.1 Implementing Integrated AP Automation Solutions
Recognizing these challenges, Forge Biologics embarked on a comprehensive accounts payable transformation initiative. The company prioritized selecting an integrated automation platform that could address their end-to-end procure-to-pay processes rather than implementing point solutions that might create new silos.
Achieving Business Outcomes Through AP Automation at Forge Biologics
The transformation of Forge Biologics’ accounts payable operations demonstrates the tangible impact that strategic AP automation can deliver for mid-size enterprises. By implementing comprehensive automation solutions, the company achieved remarkable outcomes that directly addressed their core challenges while positioning them for sustainable growth.
Increasing Electronic Payments to 90% and Capturing Rebates
One of Forge Biologics’ most significant achievements was the dramatic shift to electronic payments, reaching an impressive 90% electronic payment rate. This transformation from traditional paper-based processes eliminated the administrative burden of manual check processing while opening new revenue opportunities through payment rebates and early payment discounts.
The automated system intelligently identified optimal payment methods and timing, enabling the finance team to capture rebates that were previously missed due to manual oversight. This strategic approach to payment optimization contributed significantly to their $80K annual savings, demonstrating how accounts payable best practices can directly impact the bottom line.
Maintaining Strong Vendor Relationships with Faster, Transparent Payments
The automation implementation at Forge Biologics revolutionized vendor relationship management by providing unprecedented transparency and speed in payment processing. Vendors gained real-time visibility into payment status, reducing inquiry calls and disputes that previously strained relationships.
The streamlined approval workflows ensured that legitimate invoices moved through the system efficiently, while AI-powered validation caught discrepancies before they could impact vendor relationships. This balance between speed and accuracy proved crucial for maintaining the trust and cooperation essential for business operations, particularly in the specialized biologics industry where vendor partnerships are critical.
Realizing $80K Annual Savings Without Adding Headcount
Perhaps the most compelling outcome was Forge Biologics’ ability to support their growing workforce of 200+ employees while achieving substantial cost savings without expanding their AP team. The $80K annual savings resulted from multiple efficiency gains: reduced processing time, eliminated duplicate payments, captured early payment discounts, and minimized late payment penalties.
The automation solution handled the increased transaction volume that came with business growth, effectively scaling AP operations without proportional increases in labor costs. This scalability addressed one of the most pressing accounts payable challenges faced by growing organizations.
Best Practices for Scaling AP Automation in Mid-Size Enterprises
Ensuring User-Friendly Interfaces and Low-Code Customization for AP Teams
Forge Biologics’ success emphasizes the importance of selecting AP automation platforms that empower existing staff rather than requiring extensive technical expertise. The solution’s intuitive interface enabled quick adoption across the finance team, while low-code customization options allowed them to adapt workflows to their specific business requirements without IT dependency.
Leveraging AI-Driven Insights for Continuous Process Improvement
The implementation showcased how AI in accounts payable extends beyond basic automation to provide strategic insights. The system’s analytics capabilities enabled Forge Biologics to identify spending patterns, optimize vendor terms, and make data-driven decisions that continuously improved their procurement outcomes.
Recommendations for Selecting Proven, Integrated AP Automation Platforms
The case study reinforces the critical importance of choosing integrated solutions that seamlessly connect with existing ERP and financial systems.
Forge Biologics faced common accounts payable challenges, including manual workflows, fraud risks, and difficulty scaling AP operations as the company grew. By adopting advanced accounts payable automation combined with accounts payable AI and agentic AI in accounts payable, they transformed their procure-to-pay business outcomes effectively.
The automation platform integrated seamlessly with their ERP and financial systems, providing centralized control and real-time visibility. This integration supported a shift to electronic payments in AP, raising the rate to 90%, which helped Forge Biologics capture valuable rebates while accelerating payment cycles. Faster, more transparent payments strengthened vendor relationship management AP, ensuring suppliers remained satisfied and engaged.
Importantly, these improvements were achieved without increasing headcount, delivering $80,000 in annual AP cost savings. The scalable AP process accommodated the company’s growth, reducing operational inefficiencies and errors. Leveraging AI-driven insights enabled continuous process improvement and enhanced fraud prevention, addressing compliance complexities effectively.
Forge Biologics’ experience demonstrates how mid-size enterprises can overcome accounts payable challenges by choosing proven, integrated AP automation platforms with user-friendly interfaces and low-code customization. Such solutions empower AP teams and support sustainable business growth.
In summary, this case highlights the strategic value of combining accounts payable automation with AI technologies to optimize procure-to-pay workflows. Organizations seeking to improve AP process scalability, reduce costs, and maintain strong vendor relationships will find valuable lessons in Forge Biologics’ approach to AP transformation.