Why purchase to pay is a disruptive trend?
Rapid technological innovations promise to bring disruptions in purchase to pay processes. The advancements in blockchain technology and artificial intelligence offer unparalleled transparency, which will radically alter the way businesses purchase and pay for goods and services. Purchase-to-pay or P2P is a seamless process enabled by technology. It speeds up the process of purchasing from the point of order to payment and entails the full cycle of procurement. It has been designed to help business professionals examine the benefits and limitations of the process, and to gain a better understanding of the implementation processes. In recent years, companies have carefully looked at their purchase to pay processes to decrease overall costs, free up needed cash, improve operational performance, and make better financial decisions. In addition to reducing overall costs, refining the purchase to pay process can add visibility that provides an opportunity to have better communication with the vendor. Moreover, web-based procurement systems provide the tools for purchase and supply management professionals to consolidate information and increase services.
Developing an effective purchase to pay strategy is essential for business to gain traction over competitors in the industry. Request for a FREE proposal to discover how you can conceptualize the benefits of strategic sourcing and category management to stay ahead from the competition.
But a question that arises here is: Why Purchase to Pay is considered to be a disruptive trend?
Digital commerce is no longer restricted to computers or smartphones. There are now a plethora of offerings including connected devices, appliances, devices, and sensors, all with the potential to disrupt commerce and usher in new payment form factors. As a result, payments are becoming more of a commodity in the commerce experience. A fully integrated P2P system offers an effective solution that incorporates touchless automation to reduce errors and improve your company’s bottom line.
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This white paper outlines seven trends that will reshape the purchase to pay space:
Holistic purchase to pay automation: Holistic procure to pay automation will deliver ultimate financial agility. Such solutions combine supplier buyer connectivity, supplier activation services, and integrate an ERP platform to automate the sourcing of goods and services. Additionally, these solutions automate various services including asset management, inventory management, and other areas of enterprise spending. This end-to-end approach to automation facilitates rich data analysis by providing real-time visibility across all financial transactions.
Advanced analytics: The growing need for transparency has persuaded procurement and finance professionals to deploy advanced analytics to gain access to critical information about suppliers, purchases, spend, and cash flow. The use of advanced analytic tools offers various benefits including on-time payments, spend visibility, procurement process metrics, and team productivity metrics. Leveraging the use of advanced analytics, dashboards, and reports enable key stakeholders to analyse issues and uncover opportunities.
The consumerization of Purchase to Pay: Consumer experience continues to drive innovation in purchase to pay automation. Consumers can efficiently manage their dealings via applications on their smartphone or tablet. Not surprisingly, millennials are a significant driver of the adoption of mobile apps in finance. Also, offering a digitally engaging experience for the end-users helps in ensuring that all stakeholders have an optimal user experience regardless of the device they use.
Artificial intelligence and robotic process automation: The use of robotics and artificial intelligence help in enhancing the purchase to pay solutions. Technologies are readily available for automating accounts payable tasks. Robotic process automation helps in eliminating time-consuming tasks such as data-entry, it also enables organizations to accelerate cycle times, manage spikes in volume, and ensure consistent operating procedures.
Blockchain: Financial institutions have started using blockchain for payments processing. Blockchain technology eliminates the need to transfer transaction data between trading partners, reduces processing costs, and improves cycle times. It facilitates real-time financial reporting, and when combined with advanced analytics it also provides warnings of cash flow or operational problems.
Crowdsourced procurement: Crowdsourcing will lead to user-driven electronic procurement. It is an essential way by which businesses are improving procurement’s business agility. Furthermore, combining crowdsourcing with electronic procurement facilitates a seamless, end-to-end acquisition of direct and indirect products and services.
Corporate social responsibility: Corporate social responsibility will continue to be a major concern. Increasing corporate social responsibility has forced businesses to align corporate philosophies with sales goals, take more cues from employees on social and environmental issues, and leverage automation.
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Supply chain analysis to streamline procure to pay process for a leading oil and gas industry client.
Challenge: A leading oil and gas industry client with offices spread across the globe was facing predicaments in clearing a massive backlog of unplaced requisitions, historical data issues, and unplanned cycled requisitions.
Benefits offered: Assisted the client to redesign a procure to pay process by aligning experienced resources to shorten the requisition to PO cycle time and clear the backlog in PO creation.
Insights offered: The supply chain analysis engagement helped the client reduce delinquency in supplier orders, which helped them save over $77K in a span of six months.
SpendEdge shares your passion for driving sourcing and procurement excellence. We act as a global strategic partner for leading Fortune 500 firms and other leading companies across industries. Our strength lies in delivering robust, real-time procurement market intelligence solutions that helps sourcing and procurement professionals make informed decisions. Our innovative procurement solutions also help enterprises transform structural capabilities, improve execution efficiency, and fast-track time to savings.