Procure-to-Pay (P2P) – A Hidden Treasure

Hidden treasure3

The struggle in the back office is real.  Majority of ERPs do not have sourcing modules and even when they do, many organizations do not use them for various reasons like resistance, security and complexity. A procure-to-pay solutions bridges operations between suppliers, procurement and accounts payable.

SRMhub’s P2P solution is your hidden treasure! With zero CAPEX outlay, it will help you drive down costs through process efficiency while ensuring transparency.

Below are day to day headaches that we help clients get rid of.

Non- Standardized Quotations

Get your vendors to submit quotations in standardized manner within SRMhub. Your vendors become alive to competitive bidding even in quotations and they quote wisely; a sure way to bring your costs down while assuring vendors and internal customers of transparency.

High Proportion of Paper Invoices Received

It goes without saying that rattling through paper invoices to clear them is cumbersome. When you have a pile of paper to approve, you certainly don’t have time to clear all the exceptions. What is more annoying is when auditors come in and ask me loads of questions regarding those invoices.

Invoice not supported with purchase orders (PO)

Many organizations have a policy that each supplier invoice should be supported with a PO and a Goods Received Note – three way matching. In reality there are invoices that are not supported lack PO to support them. A lot of time is wasted in back and forth between suppliers and various departments when processing unsupported invoices.

Your procurement and accounts payable teams shouldn’t be data entry professionals but analytical problem solvers who can perform root-cause analysis and improve operations by eliminating issues before they exist, or come up with the process to resolve them.

Suppliers Chasing Buyers for Unpaid Invoices

This is probably the most common, painful task in a buyer’s life: unpaid suppliers chasing for invoices and occasionally threatening to put deliveries or services on hold, which can impact negatively on operations.

Vendor’s quote higher when they are not assured of receiving their payments on time, a case in point is all government contracts. Streamline payments process and negotiate with vendors to bring down their prices.

Lack of Automation

I believe that if you are going to hire the best people, you also need to give them the best tools to make the most of their talents. The successful organisation focuses on eliminating waste by reducing manual or non-value-added activities by adoption more automation tools.

Organisations waste on averages 125 hours per week. By automating Procure-to-Pay (P2P) process, you can focus your procurement resources in delivering commodity strategy, drive cost reduction and focus on technologies that truly make a difference in terms of analytics and intelligence.

 

Lack of Accurate Spend Visibility

 

Even today, some medium to large business struggle to have complete spend visibility. Accurate, reliable and easy-to-access visibility of how much is spent, on what and with whom, is something a most business should strive for.  However, solving the problem of poor spend visibility is not intrinsically built into most ERP systems. Therefore, procurement folks have to do with SaaS software like SRMhub outside/integrated to their ERP.

Vendor and Category Management

Don’t create categories just for supplier registration/prequalificication purposes. Manage your supplier base under categories until the next prequalification exercise. Even when your policy is not to work with vendors outside the prequalified list, it still happens. How do you make the policy work without stalling operations?

Missing and expired Contracts

You remember the many times you ask for a copy of contract that has been running for a couple of years and it was found after many days, or it went missing completely. We help you capture important clauses, change management and risk management through escalation process for your contracts and also maintain a soft copy in a central repository that you can pull out within seconds.