A new digital era is emerging, with procure-to-pay (P2P) now developed as a digital process. P2P services enhance collaboration between buyers and suppliers and generate an increased value to the supply chain.
Going digital with the P2P process allows buyers and suppliers to develop a relationship that benefits both parties. Cloud-based P2P software platforms act as a uniform for your business, allowing you to put standard business rules, workflows and systems in place.
According to the 2018 procurement insights report, over 80% of businesses still use manual or only partly-digital tools to manage their P2P cycle. Predominantly, organizations are using procurement software as an integration tool with their accounting or enterprise resource planning software. In all honesty, this is similar to using a hammer to tighten a Phillips screw. Sure, it may get the job done, but it’s not the right tool, there is a much more efficient way of doing things.
The repercussions of running inefficient systems and software stacks for a company can have devastating outcomes and damage the organization’s bottom line. In 2019, you must move away from your outdated, traditional approach and embrace P2P software to not only survive but out-class the competition. Here are all the benefits you unlock when you implement the right P2P software.
What Is A Digitized P2P Process?
The P2P process is the coordinated action of fulfilling a requirement for goods and/or services promptly. It involves several stages from identification requirement for invoicing approval to vendor payment. Each step is compulsory and needs to be executed in a strict, structured order.
Digitizing this process means no paperwork, no spreadsheets, and no misinterpreted information, with everything stored clearly on your cloud-based p2p software.
Enhanced Collaboration With Vendors
Buyers need to ensure they carry out a sleek approach to procurement to achieve a high level of collaboration that is required for an agile supplier and supply chain. Fast communication with suppliers supports the automation exchange of orders, despatch advice, order response, GRN’s, and invoices.
P2P optimization is a must-have in the consumer packaged goods, food services, and pharmacy industries. All of which support complex, very time-sensitive supply chains. Digital P2P software transforms vendor-client relationships, allowing you to bring suppliers with you, fully engaging them in the procurement process. A robust relationship improves vendor selection, compliance, and makes it easier to evaluate vendor performance.
Through digitizing the P2P process, you give your company the ability to retain accurate and updated suppliers, products, prices, and information. All of this information is also readily available thanks to insightful dashboards and instant reporting.
What Digital P2P Process Means For Your Business
- Reduce/cut out manual processing
- Remove manual controls and inefficiencies
- Certified Data Quality
- Streamline document matching
- Prevent unwanted transactions from entering the system
- Free Flowing data between all supply chain parts
What Problems Does P2P Solve?
The hardest challenge of procurement is displaying the different conditions and pre-requisites of all departments based on a standard uniform process.
Beginning with a purchase requisition, the procurement process usually take place across multiple organizational units throughout the business. There are numerous stakeholders that communicate with each other to determine specific factors. The main goal of digital P2P is to optimize the procurement process in its entirety through flawless data exchange.
Cut Long Process Cycle Times
P2P can often become prolonged and ineffective when you use manual, paper-based methods. Procurement, in essence, is multiple actions made through individual decisions. If one action is delayed, the entire process comes to a stop.
Say, for example, your purchase requisitions are regularly forgotten and not completed due to the manual process being overlooked. However, digital P2P solutions function as a digital brain for your company. Thanks to intelligent workflows with escalation and reminder functions, all process participants are automatically reminded of their outstanding tasks.
P2P solutions are uncovering new money-saving opportunities, digitally enhancing companies. From preventing manual data entry faults to improving spend visibility, digitized P2P software supercharges your companies procurement processes. ProcurePort’s P2P digital software has digital forms, cloud-based technology, smart processes, and detailed analytics to help you get more value out of the P2P process. Contact a solutions specialist for more information about digitizing your process.