P2P stands for “procure-to-pay” or “purchase-to-pay”. It is the process a company goes through to obtain raw materials or products from suppliers that allow them to offer their own particular goods or services.The process between procurement to payment is often a complicated one. It involves purchase orders, invoices, tracking, budgets, order modifications, payment, and so on. And because P2P is so important to your core business activities, it’s absolutely essential that you find a way to optimize this process. The more efficient your procurement system, the better your company is going to do.
With the appropriate software technology and management systems, you can make procure-to-pay a seamless, efficient process. Automation is going to make the entire P2P process run more smoothly. Plus, this optimization software will more than pay for itself in terms of lower processing costs, fewer errors, and faster turn around times.
Procure-to-pay or purchase-to-pay covers the entire process of requesting or requisitioning items. It also includes purchasing, receiving, accounting for, and paying for the goods or services that your company needs. It’s going to include your purchasing and receiving departments as well as accounts payable.
While every company handles their P2P system differently, there’s definitely some overlap. As such, establishing an efficient P2P system is going to have similar benefits in many different types of organizations. Across the board, automation will be the fastest and most efficient way to improve your P2P system.
A robust purchasing system will include functionality to create receivers against purchase orders when the goods have arrived. Receiving adds a layer of spend control while also allowing management to track the timeliness of order fulfillment.
NextProcess can help you upgrade your P2P system to be more efficient, simpler, and easier to use. We offer consulting services to help identify and improve areas of inefficiency so that you can enjoy a more resourceful and successful business. Our technological tools for procurement, accounts payable, and disbursement management can streamline processes and transform the way you view P2P.