Procure to Pay Automation Benefits

June 10, 2022

As a startup, building a supply chain and procurement process is crucial to acquire necessary services and products to keep inventories up-to-date and efficiently serve customers. However, hardware-centric startups with procurement-heavy operations face unique challenges when it comes to procurement management.

This is where procure-to-pay automation comes in, offering an opportunity to streamline the procurement process using ERP integration and procurement software.

Procure-to-pay automation assists in vendor and supplier acquisition, supplier invoice processing, payment automation, and reduces manual tasks, resulting in improved efficiency, service quality, and reduced resource requirements. This article will delve deeper into procure-to-pay automation, its benefits, key steps in the process, and features to look out for.

By embracing automation, startups can cultivate better relationships with suppliers, reduce errors and fraud, increase productivity and profitability, and ultimately reduce production costs. So, If you're a hardware-centric startup seeking to optimize your procurement process, continue reading to learn more about the benefits of procure-to-pay automation.

What Is Procure to Pay Automation?

The building of a procurement solution that streamlines the procurement process using ERP integration and procurement software is P2P automation. It assists in vendor and supplier acquisition, supplier invoice processing, and payment or pay automation. Digitizing and minimizing manual tasks with AP automation improves your business's efficiency and service quality while reducing required resources. 

If you're involved in business planning, you know that as much as accounts payable and procurement are essential to each other. Unfortunately, they are not always on the same page. Furthermore, they can often be located in different areas in the office, which exacerbates the issue even more. But AP automation goes a long way to fixing the issue and allowing the two to work well. 

However, before attempting robotic process automation, it's essential to ensure that all your departments have the same objectives. This will aid in creating the most optimal procurement solution that will serve everyone's needs. 

Key Steps in the Procure to Pay Process

Picking a Vendor

It's essential to ensure you're getting the best vendors to help you deliver the quality of service your customers expect. So start by creating a shortlist of suppliers you might work with and pick the one or the ones that fit your criteria. If none fit the bill, the next step in the P2P automation process can also be your first as you search for a vendor. 

Purchase Requisition

Purchase requisition, also known as "purchase request," is your organization's internal process of obtaining authorization to spend resources on a purchase. It allows you to send out a purchase order for a product or service your organization needs. In addition, it sets up the invoicing framework and ensures that vendors will receive payment after delivery. 

Purchase Order

A purchase order is a legal document that allows you to outline precise details and amounts of products for your vendor to fill. It is also essential for your AP and procurement team because it helps them in invoice processing and availing of payment funds. A purchase order is also essential when receiving shipments of orders as it helps in assessing what has been delivered against what was ordered. 

So ensure to take it into account when automating your procure-to-pay process.

Process Invoice

After delivering services or products, as per your agreement, the vendor sends your accounts payable department their invoice. After receiving the invoice, the department moves to verify the invoice against the purchase order, delivery receipts, and other supporting documentation. 

When your procurement is automated, this information is easily accessible in the system. In addition, the system can be trained to automatically check all the requirements for more efficiency and elimination of loopholes. After it's done, the system can then notify the relevant officer for approval. 


When the invoice is approved, payment is then made to the vendor or supplier, concluding the procure-to-pay process. Pay automation can reduce your payment processing time and increase your efficiency. It can also automate this repetitive task and reduce instances of fraud. 

In addition, an excellent P2P automation system allows you to choose your preferred payment option. This enables you to keep working with your preferred financial partners and integrate your established processes into your automation. 

Benefits of Procure to Pay Automation

  1. Strategic Sourcing: Digitizing your suppliers' reports helps you analyze and compare details between supplies more conveniently. When data is readily available and easy to access, it is much easier to look at it and search for the best deals. In addition, you can prioritize supplies in terms of quality and price or a metric that is important to your organization. 
  2. Cultivates Good Relationships: When employees and their vendors work from the same procurement process, everyone knows what to expect and when. As the procurement officer, you are not stuck with the stress of figuring out when vendors get paid. Instead, you help them move along the system until payment is processed. 
  3. Legal Compliance: When automating your procurement process, you have to consider the legal aspects your organization is responsible for. Therefore, you ensure your robotic process automation is within legal bounds to protect it and your suppliers. So once you do this during the initial phase of the automation, you won't have to do it again during operations. Ensuring you're always compliant with little to no effort. 
  4. Reduction in Errors and Fraud: Even though systems make mistakes sometimes, it's not as prevalent as humans do. Therefore, if you're trying to minimize mistakes in your data capturing, automating your procurement process is the way to go. On the other hand, you cannot grease a machine's hands to look the other way and commit some sort of fraud. Digital platforms are excellent at capturing data and mitigating backhand deals. 
  5. Increase in Productivity: EPR integration and P2P automation align business functions and streamline processes. This turns your organization into a cohesive unit that fosters collaboration. As a result, processes move much faster, and productivity increases. In addition, workers can do more in a day, and your organization can achieve more. 
  6. Profitability: When your organization's procurement process is optimized, it can serve more customers or build more products. Not running into supply issues is essential to keeping production going and customers served. This optimizes your business's conversions and your profit-making potential. So invest in procure-to-pay automation to increase your profit-making capability. 
  7. Reduction in Production Costs: When you automate your procurement process, you do not need as many officers on the ground. Instead, the automated process will keep track of everything and handle tasks like invoicing and payment. Reducing your production costs while making your process more efficient. In addition, there is better monitoring of inventory when everything is automated, which can reduce loss from damage or mishandling. 

Features to Look Out for in Your Procure to Pay Automation


It should have a reminder function that sends you automatic alerts when processes are at particular junctions. In addition, it should alert you when there are issues. 


We are living in a data-driven world. As such, your Procurement system needs to generate reports to help you audit and optimize your processes and resources. 

A Centralized Storage Solution

Your storage can be a massive in-house server or a cloud solution. Whatever it is, it needs to be centralized and secure. This ensures that data is not scattered all over the place, making it easy to retrieve and back up. 


For hardware-centric startups, establishing a robust procurement process and supply chain is critical to acquire essential services and products to meet customer needs. Procure-to-pay automation offers a valuable opportunity to streamline the procurement process, utilizing ERP integration and procurement software. By automating vendor and supplier acquisition, supplier invoice processing, and payment automation, procure-to-pay automation helps minimize manual tasks, resulting in enhanced efficiency, service quality, and reduced resource requirements.

One of the significant challenges procurement-heavy startups face is cultivating effective communication and collaboration between the accounts payable and procurement teams. Automating these processes allows both teams to work in tandem and access the same information, enhancing coordination and improving procurement and accounts payable alignment.

Procure-to-pay automation offers numerous benefits for startups, including strategic sourcing, which enables better analysis and comparison of suppliers, prioritization of supplies based on quality and price, and increased efficiency in supply chain management. It also cultivates better relationships with suppliers by allowing for effective communication and reducing delays in payments. The legal compliance and reduction in errors and fraud that come with automation further enhance the procurement process. By automating procurement, startups can increase productivity, profitability, and reduce production costs, allowing for the efficient handling of inventory and improved customer satisfaction.

Key steps in the procure-to-pay process include selecting vendors, creating purchase requisitions to obtain authorization to spend resources, generating purchase orders to outline the precise details and amounts of products, processing invoices to verify information against purchase orders and delivery receipts, and finally, making payments to vendors.

When considering procure-to-pay automation, it is essential to look for features such as reminders to alert staff when processes are at particular junctions, analytics, and centralized storage solutions.

In conclusion, automating procurement through procure-to-pay automation provides hardware-centric startups with a significant competitive advantage. It improves coordination and alignment between the accounts payable and procurement teams, reduces errors and fraud, enhances productivity and profitability, and optimizes the supply chain. By embracing automation, startups can streamline the procurement process, improve supplier relationships, and ultimately provide better customer service.

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