9. Procure-to-pay (P2P)

Procure-to-pay refers to the processes that occur when a company purchases, receives, and pays for goods and services. The procure-to-pay process includes activities ranging from identifying the initial need for procurement of goods or services to the final steps of approving invoices and paying suppliers.

A growing number of businesses are looking for ways to significantly increase their turnover while maintaining the quality of their products or services. A well-functioning Procure-to-Pay system enables the procurement sector to meet its profitability targets.

What processes are covered by Procure-to-Pay?

Procure-to-Pay, also known as Purchase-to-Pay or P2P, refers to the three major processes in the procurement lifecycle: requisitioning, purchasing, and payment.

P2P procurement typically includes everything from product sourcing to supply chain management to accounts payable maintenance. This includes, in particular:

• Product sourcing;
• Shopping basket creation;
• Purchase requisition;
• Requisition processing and approval;
• Purchase order preparation;
• Receipt of goods;
• Conformity assessment of the order;
• Invoice receipt;
• Invoice reconciliation and processing;
• Payment settlement;
• Accounts payable maintenance.

Of course, each company can design its own procure-to-pay process and incorporate additional steps. P2P Sourcing can be customized for any business or enterprise. It's all about making the procurement process as efficient as possible.

What is a Procure-to-pay software?

Some providers offer end-to-end procure-to-pay solutions aimed at automating the entire P2P process. Technology also plays a role in streamlining certain elements of the procure-to-pay cycle, from vendor management platforms to systems that automate the generation of invoices and the issuance of purchase orders.

In addition, businesses can use invoice automation solutions to streamline invoice data collection, reduce the risk of errors, and automate accounts payable processes.

Suppliers take steps to reduce the risk of errors or delays in sending invoices to customers by utilizing electronic invoicing solutions that ensure invoices are sent to the right place in the right format. can also be taught. These include solutions that automatically convert purchase orders to invoices and high-volume invoice system-to-system integration.

Benefits of Procure-to-Pay solutions

• Optimizing process efficiency: Process automation reduces labor costs, processing time, and risk. This directly affects a company's productivity and profitability.
• Improving visibility and control: By consolidating data, businesses can gain greater visibility and better control of their spending.
• Upskilling teams: Freed from repetitive administrative tasks, procurement teams can focus their time on more strategic projects. This allows them to keep track of the latest developments in their field and learn about innovative practices.