A strong procure-to-pay (P2P) workflow can be a critical differentiator for enterprises of all sizes. Linking the entire P2P process can lead to operational efficiencies through cost savings, improved productivity, and greater visibility into and compliance with contracts. In order to garner these benefits, however, enterprises must first devise a solid P2P blueprint. The first stage of this process is figuring out which stakeholders are necessary for a P2P transformation project.
A successful P2P project can start in many different areas and travel many different paths, but, before an enterprise begins its P2P journey, it should have a sense of where it’s going and what it’s trying to achieve. Crafting the right plan or blueprint at the outset of a P2P project will help keep the project focused on the largest opportunities and help ensure that any incremental P2P investments will generate exponential returns.
Who Should Get Involved?
The foundation of a successful P2P project is built within and across the procurement and accounts payable functions of an enterprise. Tight alignment between these two groups must exist for a P2P program to grow and thrive. The project’s lead architects and builders will likely come from these groups, but wider collaboration is needed, so input should be gathered and incorporated from other stakeholders, including:
- Finance/Treasury which manages an enterprise’s cash positions and should have requirements and recommendations related to how supplier contract payment terms are negotiated and executed.
- IT whose understanding of the enterprise’s current IT ecosystem and general technical expertise can be leveraged in helping design the P2P system with the lowest total cost of ownership and help define and support P2P integration requirements.
- Line of Business whose employee adoption rates will have an enormous impact on the overall success of the program. The large number of system business users (particularly on the front end of the P2P process) should have a representative voice in the system selection and design.
- Suppliers – whose level and speed of enablement will be a critical factor in the success of any P2P initiative. The current supply base, particularly the highest transaction volume suppliers, should be evaluated to understand the general technical aptitude and orientation which may favor certain solutions in the market and/or approaches to the enablement process.
Final Thoughts
Involving key stakeholders throughout the enterprise is critically important to the success of any P2P project, no matter in which department the process initially begins. Once all the relevant stakeholders are brought on board, including the divergent viewpoints, then the beginnings of a P2P transition can begin.
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Driving Value Through a Connected P2P Process – Part I
