5 Steps to Procure-to-Pay (P2P) success and how to get started

To break out of the status quo, you want to optimize your P2P workflow. In this article we take you through five steps that will help you implement an efficient procure-to-pay solution. 

#1 Analyze and benchmark existing status and processes

Before starting any digital transformation process you need to assess your current P2P ecosystem. 

• Map your process: Create a visual representation of your current procure-to-pay process, where all elements are included (requisitioning, ordering, invoice matching, approval, payment, etc). Identify where automation can be utilized efficiently, where you see redundancies, and where manual handoffs occur.
  
• Identify bottlenecks: Find your pain points that are key to where process improvements can occur. Ask yourself where slowdowns occur, what common errors emerge, or where lack of visibility causes concern.
  
• Measure against KPIs: Benchmarking is key. How much time is spent on purchases and the supplier agreements you have used? How much time does it take to process an invoice from receipt to payment? What is the percentage of early payment discounts you capture? Identify relevant KPIs to gauge your current performance.

#2 Develop your business case and secure buy-in

C-levels make decisions based on hard data and business cases with documented ROI. To win support for your P2P automation project, here are what to emphasize in your business case to make sure you get the executive buy-in you need:

• Set clear, measurable goals: Be realistic and set specific goals that relate to process efficiency, cost savings, and ROI.
  
• Quantitative analysis: Use benchmark data from step 1, and other relevant data to show how much you can improve your key measures. For example, use industry facts around processing time, error rates, and cost per invoice.
  
• Risk reduction: Explain how P2P automation strengthens internal controls, ensures compliance, and mitigates supply chain risk. Robust P2P processes enhance risk management.
  
• The cost of inaction: Demonstrate the cost of not upgrading your P2P processes.  Highlight how this hurt your competitive edge, slow down your finances, and create unnecessary overhead.

#3 Choose the right P2P solution and embrace XAI technology

Finding the best P2P solution for your needs is a serious decision. You need to do your research and weigh your options carefully before choosing the vendor. In today’s market, almost all P2P software systems use AI which is both a benefit and a challenge. AI systems can operate as “black boxes” where they produce outcomes without clearly showing how they arrived at those results. 

eye-share Workflow is different. It is built using XAI (Explainable Artificial Intelligence), a specific field within AI that makes the decisions of AI systems clear and easy to follow. XAI tools and methods show how AI models get their results, and why they make sense. Read more about it in our article As a CFO, you must know this about AI.

In addition to looking at how the vendor utilize AI, here are the most important factors to consider:

• Automation capabilities: The P2P solution needs to seamlessly automate manual tasks to improve your workflows. 
• Integrations: Your P2P system should effortlessly be integrated with existing accounting software, ERPs, and other data systems, simplifying workflows and avoiding data silos.
• User Experience: Your P2P should be easy to use and provide valuable insight and clear reporting dashboards. P2P solutions using XAI ensures a level of transparency and insight to why decisions are made by the AI. 
• Scalability: Consider your organization’s growth trajectory. The solution you chose needs to be able to expand along with your needs for the future. 

#4 Define your P2P implementation roadmap

Successful P2P system implementation necessitates detailed planning. Here’s a structured approach:

• Create an implementation team that engages representatives from all key departments such as procurement, accounting, IT, and management. This ensures cross-functional alignment and buy-in.
• Build a phased approach. Consider breaking down the implementation into manageable phases, starting with critical or pain-point areas.
• Set aside enough time for testing and training.
• Acknowledge employee concerns. Emphasize how the new P2P system will improve their daily work experience and remove mundane manual tasks freeing their time to more strategic value. 

Eye-share provides dedicated support resources to assist in smooth implementation.

#5 Measure, analyze, and improve: Keys to P2P success

Your true success of your Procure-to-Pay (P2P) project doesn’t end with implementation. To maximize your return on investment, you need to:

Measure: You should continuously track and measure your most important metrics. Here are some typical metrics:

• Processing time – Has it been significantly decreased?
• Cost savings – Are you realizing measurable efficiency gains?
• Error rates – Have errors been reduced for a more accurate process?
• Compliance – Are there improvements in regulatory compliance or audit performance?
• User satisfaction – Are your employees embracing the change and working more efficiently?
• Overall efficiency – Have the investment provided documented wins in business performance?

Analyze: Dive deeper and spend time analyzing the data available. Things to ask yourself:

• Where are the significant improvements?
• Which areas still need refining?
• Are there still processes that are clunky, that cause delays or errors?

Improve:  This is not a sprint, but a marathon. Remember that constant, incremental optimization will maximize the long-term value of your P2P digitalization process. 

By consistently measuring, analyzing, and improving your P2P processes, you ensure continuous optimization and a sustained return on your investment.

Bonus Tip: Regularly use benchmark comparisons with industry standards and leading practices to drive improvement and set new goals.

Do you want to learn more about P2P?

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