Procure-to-Pay (P2P) is another sequential approach used in the procurement landscape to obtain a product or service at the most competitive prices and within the required turnaround time. A well-coordinated and integrated P2P process needs a robust procurement team and software system for the right execution.
Steps of P2P
A P2P procurement practice spans across multiple steps.
- The identification of product and service needed and then devising the list of relevant specifications, terms of reference (TOR), and statement of work (SOW).
- The creation of a purchase requisition in the light of TORs and SOWs.
- Spot buy or purchase order is worked out and approved.
- After receiving the ordered items, the supplier receipt is evaluated in the light of the PO and supplier contract and approved and rejected accordingly.
- After the evaluation and approval of the goods receipt and supplier performance, the received invoice is green-lighted and sent to the finance department
- Finally, the vendor payment is processed.
P2P’s Best Practices
Taking care of these things improves the end results of the P2P process.
- Keep the entire process transparent
- Enhance and improve supplier and contract management
- Deploy procurement management software that helps in different steps of the P2P process flow
The Benefit of P2P Implementation
A well-executed P2P process streamlines the entire procurement activity and improves the overall productivity of the supply chain team.
SimplyPurchasing by Microsys is robust procurement management software that works on many fronts to improve organizational performance. It improves the procurement process and helps get a better hold of spend management with its impressive PO creation and vendor management features. The use of SimplyPurchasing can also make the implementation of the P2P process easy and effective.