This article in supply chain quarterly is obviously about automation in the space called procure-to-pay, which varies in definition but generally speaks to the set of processes involved in buying and then paying for B2B goods and services. The author goes into a fair amount of detail. We have and will continue to cover the space as well in member research. For sure, this is one of the key areas under review in the pandemic era as companies review their financial operations for opportunities to digitize and more fully converge these systems and processes. There are myriad benefits available in doing so, from cost efficiencies to better deals and effective working capital management.
‘Your organization’s procure-to-pay process outlines how your company requests, acquires, and pays for the resources and services it needs to conduct business. Specifically, it covers how your business approves purchases, chooses vendors, conducts QA, and pays invoices…
Procure-to-pay software makes tracking vendors, conducting purchasing, and managing cash flow as simple as possible…
These systems automate many processes and workflows in your procurement process…
By streamlining these systems with automation, you’ll reduce costs and waste by eliminating manual processes. You’ll also dramatically reduce human error from manual data entry.’
Surely one of the advantages to getting away from the analog environment in procure-to-pay workflow is the more focused ability to manage the long tail spend, which in times of supply chain stress can be critical to obtaining difficult-to-find goods and services. In addition, the more efficient payment processes resulting from better matching of orders to shipments and invoices speeds up the settlement timeframe, something that suppliers have been seeking to do since before the pandemic’s start but certainly in more pronounced way in the past 21 months. The piece is a bit lengthier than many others, but for those with topical interest, worth a read-through.
‘Although procure-to-pay software has expanded into many industries, sadly there are still many companies that rely on manual processes. Using things like spreadsheets and paper documents puts your business at unnecessary risk while preventing your procurement process from achieving strategic significance…
Luckily, you can break free from these manual systems with procure-to-pay automation. That means no more filling out “literally” thousands of purchase orders and processing them manually. No more endless back-and-forth trying to get purchase orders approved. Reduce maverick and tail spend. And no more compiling weak data from various spreadsheets…
With procure-to-pay automation, you’ll reduce delays in your purchases, keep your vendors happy with on-time payments, and give your team more time. Best of all, you’ll transform your procurement process into the agile system it needs to be to keep your business competitive in our constantly changing marketplace.’
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group
