The procure-to-pay (P2P) process helps businesses and organizations oversee their purchasing processes by allowing employees to electronically place orders, track shipments and payments, and get approvals. P2P also includes any activities related to tactical bidding (aka “3 bids and a buy”), source determination, and carrying out purchases.
Digitizing and automating these processes make it easier for buyers and suppliers to collaborate. This saves both parties time and money. According to McKinsey, businesses that collaborate with suppliers experience more growth, lower operating costs, and higher profitability than their industry peers.
Because having the right supplies and services is a critical part of any company’s daily operations, the procure-to-pay process plays a vital role in the success of your business. Unfortunately, paper-based procedures and outdated methods can turn P2P into a slow, tedious cycle prone to errors or unexpected delays.
Transforming your company’s P2P processes using a solution like Vroozi can cut purchasing costs by up to 30 percent and help you achieve higher savings and increased financial control. This transformation can also reduce overall payment costs by 65-75 percent and invoice costs by 30-40 percent.
How can you streamline your company’s procure-to-pay process?
A company’s P2P processes can be slowed down by a lack of transparency and inefficient practices. These sluggish or outdated procedures can result in rogue spending, duplicate purchases, and unapproved purchases from unapproved suppliers. It can even lead to fraudulent invoices that cost businesses significant amounts of money.
Transforming your procure-to-pay process will increase purchasing accuracy and improve efficiency through automation and digital tracking. Features like three-way matching between purchase orders, goods receipts, and invoices can also give companies better control and insight into their overall procurement efforts.
How can your business start updating its P2P process?
- Focus on achieving higher transparency.
- Focus on implementing automated processes.
- Encourage collaboration and communication internally and with suppliers.
- Improve the volume of data and data quality.
What should you look for in a procure-to-pay solution?
Before transforming your P2P processes, it’s important to find an intelligent purchasing and spend management platform that offers the following features:
- The ability to reduce or eliminate rogue spending, invoice fraud, and errors, achieving higher spend control and more transparency
- Features that can achieve higher levels of efficiency, speed, and accuracy using automated processes, artificial intelligence, and data analytics.
- Faster payment processing that allows your suppliers to receive payments early or on time to work with company working capital benefits.
- A marketplace that allows you to browse through already-approved suppliers.
- The ability to scale with company growth.
- Electronic and digital connections that reduce paper-based processes.
- A highly-organized way to oversee data, improving spend and process visibility using a centralized platform.
- The ability to automate repeatable tasks, allowing your employees to focus on more strategic work and problems.
- The ability to manage, interpret, and update KPIs related to procure-to-pay and accounts payable (AP) procedures, leading to improved efficiency and higher savings.
- Purchase requisition that allows your employees to request the goods and services necessary to operate your business.
- Invoice management that allows you to manage, track, and reconcile invoices.
- Payment management that allows your employees to digitally schedule and automate payments, reducing the need for paper checks.
Start boosting your company’s P2P processes today.
Vroozi’s modern and mobile platform makes it simple for organizations to find, order, and pay for goods and services. With a single platform, multi-device access, and seamless processes, Vroozi can streamline your P2P operations. Schedule a demo today.
