Transforming your P2P processes can feel like a daunting task, but it needn’t be. Preparation is key to ensure that the P2P solution you choose is the right option for your business.
We cover the key steps you need to undertake to ensure that your organisation is ready for an efficient and effective P2P transformation.
Setting the case for change
The first important step is to undertake a period of self-reflection within the business. Understanding why and how you currently spend money within the organisation is crucial. At this point it’s vital that you engage with stakeholders involved at each stage of the P2P process. Without the specialist knowledge from users and stakeholders who are at the heart of your P2P function, the period of self-reflection is likely to be less effective.
As an organisation, ask yourself the following questions:
- Do we have a full and transparent understanding of our supply chain?
- Where do we spend money?
- What categories?
- With which suppliers?
- What is the frequency of spend with each supplier?
- What are the risks within the supply chain?
- Are we in control of our spend?
- Do we have an existing P2P cycle?
- What processes and procedures are in place to approve contracts, invoices, purchase orders?
- Are there defined roles for each stage in the process?
- Are our processes manual or automated?
- What are the timeframes for various stages of the process and can we identify bottlenecks or inefficiencies?
- What control methods are in place and are they effective?
- Do we face any current challenges when purchasing?
- Inaccuracies when making payments?
- Budget holders spending without the autonomy to do so?
- Invoices failing to match?
- Delays in payments?
- Supplier complaints?
- Are we attractive for suppliers to work with?
- Are our processes compliant?
- What budget can we commit towards this P2P transformation project and is it ring-fenced?
All of these questions will help you shape a compelling case for change, and identify the opportunities that a P2P transformation will enable.