How to improve the procure to pay cycle?
The procure-to-pay cycle mainly suffers from time-consuming, redundant processes, communication delays and errors, lack of transparency, scattered processes, and human errors. These problems are usually mitigated through the automation of the P2P cycle.
Having a digital procure-to-pay platform allows procurement departments access to detailed, real-time data. It lets them compare suppliers and products in detail and identify vendors that have low risks attached to them. PR raising is simplified as every employee can do so digitally. These PRs are routed for approval and turned into POs which are then forwarded to the vendors of choice. As vendor consolidation is easy to implement on a central platform, maverick spend can be eliminated. Enhanced records and oversight of budget allow the mitigation of dark purchasing as well.
As the goods sent by the supplier are received, the software performs automated three-way matching between PO, Invoice, and GNR, ensuring that all the documents show similar data. This eliminates problems related to incorrect payments and reduces the chances of fraud. Procurement software also calculates chosen KPIs and generates reports automatically as well. Vendor Portals are used to streamline communication with suppliers throughout the process as well.
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