Purchase-to-Pay (P2P)
Introduction
Digital Purchase-to-Pay (P2P) systems streamline the operational procurement processes from requisitioning to payment. These solutions integrate indirect purchasing and accounts payable functions, enabling seamless transactions and efficient procurement workflows.
First Principles
The P2P process is founded on the integration of procurement and financial systems to ensure end-to-end visibility and control. It includes stages such as requisitioning, workflow/approvals management, e-procurement/catalogues, purchase order management, goods receipt, invoice processing/3-way matching, and supplier payment. Automation and standardization of these processes improves cost control, contract compliance and reduces manual intervention and errors.
Indirect, frequently purchased items and non-strategic spend can be automated via online catalogues to reduce procurement's workload, reduce maverick spend and enhance process and contract compliance.
Additionally P2P can optionally integrate with legacy systems such as ERP or Source-to-Contract (S2C) and digitally connect these systems for improved end-to-end process automation and efficiency.
Benefits
Implementing a P2P system offers benefits such as improved procurement efficiency, reduced maverick spend, better financial control, and enhanced compliance to existing advantageous contracts, terms & pricing. Organizations can enhance internal user experiences, reduce processing times, improve supplier relationships through timely payments, and gain greater insight into spending patterns and financial commitments.
Head over to our Savings Calculator to estimate your P2P savings potential.
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