Understanding the Procure-to-Pay (P2P) Process

Types of purchase orders

A procure-to-pay process, or P2P process, refers to the actions a company takes to fulfill a requirement for goods and services in a timely manner. This often involves integrating purchasing software and accounts payable systems to create greater efficiencies. The procure-to-pay process happens in various stages.

Here’s a general overview of what the process looks like:

  1. Identify needs
  2. Purchase requisition
  3. Requisition approval
  4. Create a PO/spot buy
  5. Purchase order approval
  6. Goods receipt
  7. Supplier performance
  8. Invoice approval
  9. Vendor payment 

Best Practices in the Procure to Pay Process

There are many things you can do to improve the efficiency and effectiveness of your procurement process.

These include:

  • Using procure-to-pay software
  • Keeping the process transparent
  • Improving supplier engagement
  • Optimizing inventory
  • Streamlining contract management
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How P2P Automation Can Help Bring in Efficiency in Purchasing

P2P automation software can help your procurement team enhance productivity, efficiency, and profitability in a cost-effective way. 

A manual P2P process results in a wide range of inefficiencies, including: 

  • Spending a lot of time chasing exceptions, tracking maverick spend, and dealing with approval bottlenecks
  • Increased material, storage, and environmental costs stemming from mountains of paper
  • Damaged supplier relationships due to slow payment and processing errors

You can use a procure-to-pay software solution to address these challenges. 

Increase Efficiency with P2P Software

With P2P software, you can reap tons of benefits, from increased efficiency to improved processing and end of maverick spend. You can also benefit from improved supplier relationships and business intelligence. Take control of your procure-to-pay process today.

Want to learn more? Visit our Purchase Order