Procure-to-Pay
What is procure-to-pay (p2p)?
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.
Why is procure-to-pay used by businesses?
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.
What are the benefits of using procure-to-pay?
The main benefits of using p2p are:
- Streamlined processes which reduce manual effort and time spent on procurement activities
- Automated processes help to reduce errors and improve accuracy
- Improved visibility into spending and budgeting
- The ability to track payments and vendor performance
- Improved supplier relationships
- Increased efficiency and cost savings
Is software used for procure-to-pay?
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.
What business sectors mainly use procure to pay?
A wide range of business sectors use p2p, including:
- Manufacturing
- Retail
- Logistics
- Hospitality
- Healthcare
- Education
- Government
- Non-profit organizations
Procure-to-pay consultants, do I need them?
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.
What is the future of procure-to-pay?
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.
What is the procure-to-pay cycle?
The p2p cycle consists of six steps.
These steps include:
- Sourcing and Procurement
- Requisitioning
- Ordering
- Receiving
- Payment
- Accounting.
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.
Our services
Procure Consult
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.
Procure Health Check
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.
Procure Analyse
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.
Procure Outsourcing
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.
Procure Post
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.
