Why Procure-To-Pay (P2P) automation is is a smart move
When we talk about the procure-to-pay (or P2P) cycle, we are encompassing every task in the realm of requesting, receiving, and paying for goods and services.
Let’s take a look at a breakdown of the steps:
As part of supplier onboarding, a vendor is invited via email to supply relevant information and documents to use a self-service portal. From here, items are requested for order from an online catalogue of approved suppliers:
Purchase requisitions are forwarded to management for approval, with all necessary policy compliance in check
Once approved, the requisition is automatically converted into a purchase order no sent to the supplier
Goods/services are received, and the user can add comments, attach documents etc.
The invoice is received and automatically matched to the corresponding purchase order and goods receipt
Invoice verification and payment approval processes are carried out
The key technology behind the magic
● Automation of Accounts Payable workflows
● Artificial intelligence
● ERP integration
● Dashboards and analytics
● Electronic archiving
● Supplier information management
● Robotic Process Automation
● Electronic invoicing
● Mobile access
Control and Efficiencies
Whilst the advantages of an automated P2P system go much further and deeper than you probably realise, some of the key benefits are:
● More timely and accurate data entry
● Automated approval workflows
● Reduced errors
● System consolidation
● Access to regular updates
● Complete audit trail
● Ability to recall any document instantly
● Customisation of KPIs
● Less expenditure on overtime and new hires
● More frequent take up of early payment discounts and less late fees
● 24/7 mobile access to documents
Spend Compliance and Management
One of the pressure points of P2P is the management of spending. The ability to pinpoint where, when and how money is spent can have a real impact on the financial health of a business.
An automated P2P system has the ability to capture that data and present it in a robust system, with guaranteed compliance.
● Standardised purchase order workflows eliminate paper, ensure invoices are approved and paid on time, and provide budget overview information
● Pre-approved vendor catalogues are readily accessible for staff and prevent maverick spending
● Integrity and quality of processes and internal controls, as well as data protection
Supplier and employee experience improvement
As important as efficiency of processing is, comparable to that. Is the experience of people interacting with the P2P cycle - staff and suppliers alike.
Automating the cycle provides many improvements on the experience.
● Staff are empowered by meaningful tasks, having greater control and planning over their workload and increased mobility
● Stronger relationships with suppliers due to more transparency, faster payments, and simple vendor onboarding
● "Soft" cost savings from productivity, staff retention, lower vendor and employee churn, and by avoiding visibility issues
● Harmonization throughout the organisation as well as accountability on a team or individual level
Intelligence in Agility
Combining cost savings with productivity and experience from improvements brought about with an automated P2P system, overall your organisation will be better equipped for a future of growth and informed decision making.
● Exciting things on the horizon, such as forming new supplier relationships, increased savings to put towards research and development, as well as expansion into new markets
● With more accurate data, more transparency and vision into performance and processes, and access to data that helps identify focus areas
● Future proof business plans for the future, and move forward with fewer technology restraints and security and compliance measures in place
The all important bottom line
After delving into these strategic advantages of P2P automation that will enhance the performance of your business, there is of course one main benefit - increased profits and an overall healthier bottom line.
