Procure to Pay: Best practices in six key points

By Corcentric | December 1, 2016
About Corcentric
Procure to Pay: Best practices in six key points

Salon Solutions is always an exciting event, and a great chance to hear the latest buzz and get a feel for what’s going on in our industry. This three-day show in Paris was hugely successful in terms of attracting attendees to the Determine booth and engaging them on a personal level. What’s more, speaking at various events was a chance to share our vision and technology around Procure-to-Pay with a much wider audience. The following six key factors for success are from one of our presentations during the Best Practices Round Table.

Two perspectives, six key points on the factors for success.

It’s clearly optimistic to try and boil the success of your projects down to just a handful of key points. Still, the fact remains that the six points listed below are either overlooked or underestimated in most projects with which we’ve been involved in various capacities over the last fifteen years.

We’ll look at those half-dozen key points from two different perspectives: the business (representing operational profit) and the project (representing the decisions made and implemented).

About the projected operational/business gains.

  • Collaboration: The human aspect behind the P2P process.
    P2P represents more than just administrative savings and tighter control over staff. For Determine client Acticall, Procure-to-Pay provided an opportunity to initiate collaboration that spanned the entire requisition chain. The various prescriber departments are involved in the collaboration process based on their procurement roles, thus improving decision making for the good of the entire organization. Providing the means to collaborate capitalizes on a powerful performance lever: the instinctive need of people – who are by nature social animals – for collaboration.
  • Budget management is at the heart of Procure-to-Pay.
    Our clients all agree: budget management, even non-constraining, automatically enables users to reduce spending (and also prevents open orders). Although reduced consumption, unnecessary procurement avoidance and self-regulation are immediate benefits of budget management within P2P, the solution is simply the implementation of company policy.
  • Virtualizing the Supplier Invoice chain.
    However impressive the actual savings made possible by the virtualization of Supplier Invoices, they can only be realized once the “Requisition – Supplier Order – Receipt – Invoicing” chain has also been virtualized. After all, a chain’s performance depends on its weakest link.

Regarding the project: choosing and implementing.

  • Pre-project: RFI—an important stage.
    The RFI stage is all too often overlooked. And yet, this is the time when you can compare your own requirements to the functions offered by mature marketplace solutions. Defining success criteria is a key element in this process.
  • During the Project: Project management assistance is one of the keys to success.
    Project management assistance can play a major role in achieving implementation success. It’s important to have specialists on your side who understand your business requirements, and who are also realistic about the functional possibilities of mature Procure-to-Pay solutions..
  • Post-Project: Don’t forget the whole lifespan of the project.
    Initiating Procure-to-Pay is only the beginning of the story. Usage indicators and KPIs must be monitored every quarter so administrator(s) can adjust processes and business rules in order to fine-tune the response based on organizational needs. How many great implementations have suffered from poor user service because of insufficient annual upgrades and budget allocations?

If you’d like to learn more about how our Cloud Platform-based Procurement Solution can empower your organization, schedule a demo.

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