The Executives’ Guide To Using Procure 2 Pay Software For Order To Cash Solutions
PROCURE 2 PAY SOFTWARE
The modern corporate world is inundated with options for cash solutions and handling complex financial transactions. Despite the variety of options, the procurement to payment (P2P) process has emerged as the go-to solution for many businesses seeking greater control, visibility, and streamlining of all accounts payable (AP) and accounts receivable (AR) transactions.
This article aims to provide executives with comprehensive guide on how to employ and make the most of procure pay (P2P) software such as the SAP Ariba and Coupa programs to deliver order to cash (OTC) solutions. In the sections below, we will detail the features of procurement to payment software and the components required to properly use procure pay solutions for OTC solutions.
Executives’ Overview of Procure Pay SoftwareProcure pay (P2P) software consists of suite of connected financial applications which facilitate purchasing, payment, and accounting. By unifying all procurement activities into single source, P2P solutions allow executives to gain control and visibility of all ordering, invoicing, and payment processes. This unified source of information can also be employed to ensure legal and regulatory compliance, mitigate the risk of fraud, and maintain inventory levels and budget restrictions.
Among other benefits, P2P software provides executive teams with powerful analytics and metrics that allow for process improvements and identifying any areas of overspend. This data-driven approach can also be used to create accurate and timely insights, thus allowing organizations to make informed decisions when making purchasing and payment decisions.
Components Required for Procure Pay SoftwareFor an executive team to utilize procure pay Software effectively, there are several components that need to be in place. These components can be further broken down into the following eight steps.
Step 1: Automate Source-to-Pay and Expenditure ProcessesThe first step in setting up P2P software system is automating source-to-pay and expenditure processes. Automating these processes involves streamlining purchasing, invoicing, and payment processes for greater control and cost savings. Automated processes can also enable the organization to standardize procedures related to vendor management, inventory and budget management, e-invoicing, and bank reconciliation.
Step 2: Plan and Source Goods and ServicesThe second step involves planning and sourcing goods and services for the company. This requires the executive teams to choose the most appropriate vendors and gain insight into price and quality based on market dynamics and environmental factors.
Step 3: Rationalize the Supply BaseThe third step involves rationalizing the supply base, categorizing suppliers in order to better manage the relationship and ensure quality of products and services. It also involves creating and utilizing supplier selection criteria to ensure that the most appropriate vendors are chosen.
Step 4: Assess and Analyze Financial PerformanceThe fourth step is assuring and analyzing financial performance in order to negotiate competitive terms with key vendor partners. In this step, the executive team will assess performance metrics such as year-over-year variances, total cost of ownership metrics, and total spend.
Step 5: Monitor and Track the Supply ChainThe fifth step involves monitoring and tracking the supply chain. This allows the organization to gain insights from an end-to-end perspective, ensuring that all orders, receipts, and payments reach the same order level. This also helps the team detect any irregularities or inefficiencies in the supply-chain process.
Step 6: Leverage Artificial IntelligenceThe sixth step involves leveraging artificial intelligence (AI) to better assess and monitor supply-chain performance. AI can be used to detect patterns and trends in the data and offer valuable insights which help the organization make more informed purchasing and payment decisions.
Step 7: Process and Consolidate InvoicesThe seventh step will involve processing and consolidating invoices. This helps reduce manual errors and ensures that all invoices have been properly verified and approved. It also allows for automated approval of invoices and payments.
Step 8: Improve Internal and External CommunicationThe eighth and final step includes improving internal and external communication. This includes seeking feedback from vendors and having clear and efficient communication processes in place. This can help ensure that vendors are being paid promptly and that orders are being fulfilled in timely manner.
ConclusionProcure pay (P2P) software is an increasingly popular solution for executives looking to ensure visibility, control, and efficiency within their accounts payable (AP) and accounts receivable (AR) processes. As detailed in this guide, properly employing P2P software to deliver order to cash (OTC) solutions requires that executive teams take the necessary steps to set up and configure the software. However, with the right steps and components in place, the rewards are well worth the effort.
