Procure to Pay (P2P) Process Effectiveness

Your organization can optimize contracts and pricing, but if end users do not have an efficient way to purchase against those agreements, then your sourcing team's efforts have been wasted. Our experience shows that organizations typically realize savings of up to 20 percent by driving spend to negotiated agreements.

The Procure to Pay (P2P) process supports your organization's overall risk management approach by leveraging existing procure to pay technology tools to drive regulatory and contract compliance. For example, it supports Sarbanes-Oxley and other regulatory requirements by ensuring proper approvals prior to ordering goods or services. It also supports invoice payment by electronically matching invoices to purchase orders and receipts (when required), minimizing the number of transactions that require manual intervention.

If you are experiencing any of the following symptoms, your organization may benefit from P2P process effectiveness:

• A high number of invoices without corresponding purchase orders
• End user dissatisfaction with existing procurement tools, including inability to find the information sought or lengthy approval processes
• Purchase prices higher than contracted prices
• Purchases made from non-preferred suppliers
• Low user adoption as a result of complexity or policy issues

Experience applying P2P technology tools.

To be most effective, P2P process technology tools must be easy for end users to apply. Approval workflow must be timely and understandable for both requestors and approvers, and transactions should enforce contract compliance.

The Claro Group has extensive experience with a wide range of procurement technology tools including:

• Ariba®
• PeopleSoft®
• Perfect Commerce®
• SAP®
• Oracle®
• VerticalNet®
• Ketera®

We have assisted clients in many industries – including financial services, public sector, manufacturing, professional services and high technology – improve P2P processes.

Please contact us for more information about The Claro Group's Sourcing and Procurement Solutions.