Organizations have realized it is imperative to take a holistic approach to all facets of the business. That is creating a change in the way tasks are performed, especially within the procurement and finance functions.
Hence organizations are continuously re-evaluating how:
- To reduce the overall supply chain and inventory cost
- To achieve operational excellence
- To make improved operational and financial decisions
- In addition to cost control, better operational visibility, and effective communication with vendors in terms of item delivery and payment.
Procure-to-Pay (also known as P2P) is an automated system that simplifies the procurement process from buying, approvals, payments, compliance, and delivery on a single platform.
Procure-to-Pay solutions main role is to:
- Streamline purchasing process – providing connectivity throughout the organization so requisitions are requested and approved faster.
- Ensure accuracy and create efficiencies in cost and time due to the entire process involving many individuals across different parts of the organization which can create complexity.
- Electronic exchange of documents – Purchase Requisition (PR) is created and approved by management, the procurement will go through the supplier list and select the best supplier to automatically issue a Purchase Order to be approved and sent to the supplier.
- Invoice automation – Invoices can be sent automatically by the supplier to the buyer.
- Matching invoices with purchase order and delivery order (Three-way Matching).
- Ability to integrate with ERP’s system for invoices to be paid.
Procure to Pay Process flow
1. Guided Buying
Guided templates, ensuring best practices, operational efficiency, and visible audit trail
- Gain 100% visibility – Providing buyers and suppliers the ability to view invoice status in real-time which results in better visibility.
- Better decision making with data capture – Data capture abilities through access to real-time and historical data resulting in better decision making, gaining better control over cash flow and capital.
2. Maximize Savings
Maximize savings from sourcing with efficient negotiations by driving prices to the bottom line.
- Reduce cost significantly – Automating repetitive tasks to reduce time and cost by going paperless. The staff can focus more on other tasks and become more productive to the company.
3. 3-Way Matching
Facilitate the process of procurement between Supplier, Buyer, and Receiver by ensuring ease and transparency.
- Streamline procurement processes – Purchase Requisitioning and approval can be done faster, suppliers can be chosen and issue Purchase Order effectively throughout the organization which is easily trackable.
- Improve transaction – invoices that pass the 2-way or 3-way match are put straight through to the organization’s ERP for payment.
4. Improved Accountability
- Promote accountability among all employees and departments. Record-keeping is made seamless; all records are centrally accessible, making spend analysis easier than ever before.