Procure-to-Pay, or p2p, is a cloud-based solution that streamlines the procure-to-pay process for businesses. It automates and manages the entire p2p cycle, from requisition to payment, in one centralized platform. This includes creating and approving purchase orders, receiving and managing invoices, and making payments. p2p helps businesses save time and money by simplifying and automating the procure-to-pay process. In addition, p2p provides visibility into spending, so businesses can make more informed decisions about where to allocate their resources.
While it is logical to expect that, over time, cloud-based procurement solutions will gain the most substantial market share, to declare CD (or legacy) solutions “dead” (as the author does) would be premature….”dean man walking” might even be pushing it, but it is probably more an argument around execution date.
At the very least there are two levels of complication. One has to do with organization size and complexity, and procurement systems that have functioned well for the largest organizations will not be going anywhere soon. The purveyors of these systems are not without knowledge of trends, technology and revenue streams, so will adapt and provide the necessary support and external links for flexibility.
Secondly, there is inertia, since the cash management portion of the supply chain event remains at the forefront, and cloud-based P2P helps to provide perhaps an easier gateway to greater cash flow management flexibility but is not the entire focus. So going forward, as in many other product categories, cloud will of course be a more scrutinized and considered option.
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group
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