Procure-to-pay (also known as p2p) is a business process that involves the purchase of goods and services from an external vendor and the subsequent payment for those goods and services.
It encompasses the full cycle of sourcing and procurement, requisitioning, ordering, receiving, payment, and accounting activities required to purchase goods and services.
Businesses use p2p to streamline their procurement processes, reduce costs, and increase efficiency. It helps businesses to manage their purchasing activities more effectively and to ensure that they are buying the right products at the right price.
Additionally, it helps businesses to track their spending, ensuring that they are staying within their budgeted amount.
The main benefits of using p2p are:
Yes, the software is used for p2p.
Software solutions are designed to automate the procure-to-pay process, making it faster and more efficient.
They provide tools for sourcing and procurement, requisitioning, ordering, receiving, payment, and accounting activities.
The software also allows businesses to track their spending, manage vendor performance, and monitor supplier relationships.
A wide range of business sectors use p2p, including:
It depends on the size and complexity of your procurement processes. If you have a large and complex procurement process, then it may be beneficial to hire a p2p consultant to help you with the process.
A consultant can provide advice on how to optimize and streamline your procurement processes, as well as offer support with implementing and managing a p2p system.
The future of p2p looks bright. As technology advances, the potential for automation and AI in the p2p process will become even more viable.
This will result in faster, more efficient, and more accurate procurement processes. Additionally, more businesses will be able to take advantage of the cost savings and improved supplier relationships that come with using a p2p system.
The p2p cycle consists of six steps.
These steps include:
Each step in the cycle is designed to ensure that the process is efficient and accurate and that the necessary goods and services are purchased in a timely manner.
With Procure Consult, we offer support with tender management and ad-hoc procurement consultancy. Our expert team will manage the end-to-end procurement process or offer assistance at any stage, as and when required.
With Procure Health Check, we’ll conduct a full review of the strategic and operational procurement processes within your organisation. We’ll identify the areas that need improvement and help you drive greater value from the procurement process.
The purpose of Procure Analyse is to conduct a high-level analysis of your spending activity. We’ll help you understand your current purchasing behaviour and highlight areas that can deliver greater value. Procure Analyse is also offered as part of Procure Health Check or as a standalone service.
With Procure Outsourcing, we deliver a range of procurement solutions on an outsourced basis, completely bespoke to you. This can range from delivering multiple tender projects as a package to delivering the full procurement function of your organisation.
Are you trying to find a supplier for your project? Post your tendering opportunity onto any of our 11 sector-specific portals for FREE with Procure Post!
Housed by our sister company, Hudson Discover, our portals host thousands of tendering opportunities for organisations of all sizes. For an additional cost, we’ll even help you identify your requirements and find the most suitable suppliers for your business.
Get in touch for a consultation and find out how we can help your business drive better value from procurement.
Top 10 Tips to Improve Your Supply Chain Management Improving your supply chain management is…Read More