In principle, this involves one of probably the most fundamental business topics there is. There is nothing new about the objective of procure-to-pay. But what distinctly separates it from well-known approaches is the holistic view of the procurement process, in which the usually strictly divided company departments are considered as synergistically connected.
EASY Procure-to-pay provides an enormous gain in information as well as savings in expenses, time and distracting routine tasks.
Procure-to-pay: an overview of the process
What makes up the procure-to-pay process? The following sketch should make it clear.
Starting with the purchase requisition to the automated order in the ERP-System and payment, these subprocesses describe the path in the procure-to-pay process.
Now we have enhanced our proven invoice process with the pre-process, the EASY Request application. With it, the process can be modeled from electronic purchase request to automated order in almost every ERP system.
Advantages from procure-to-pay for the individual departments in the procurement process
- Identification of a demand for goods: Person responsible
- Authorization of the procurement process: Approval by supervisor considering the budget
- Search for possible suppliers: Person responsible/Purchasing
- Solicitation of bids: Purchasing
- Selection of the supplier: Purchasing
- Goods receipt: Warehouse
- Invoice receipt: Accounting
- Payment: Bookkeeping
Of course, the procure-to-pay process can be expanded as necessary, depending on the complexity of the flows in the company and the internal company structure.
With that, EASY Request not only represents a tool for optimization, but also presents itself as a link between various departments.
All information in this process is collected in a digital purchasing file, to which the information from the subsequent EASY invoice process is added throughout the entire P2P process.
Naturally, all the information in the purchasing file and the approval can be added and processed via mobile apps!
Procure-to-pay – the digital clip
More than almost any other currently popular business concept, a functioning P2P is able to move a company forward conceptually and financially.
For one thing, this is because in many companies the expenses for the production process make up the majority of expenses, alongside payroll costs. Thus, savings in the procurement chain can have significant effects on your liquidity.
For another, digital procure-to-pay affects almost all other departments in a company, due to its 360-degree view:
- The P2P process provides departments with extremely interesting data and information. After all, the interchange with suppliers is also a form of market analysis, in which you can stay up to date on new developments. Procure-to-pay transforms this analysis into an on-going process.
- Bookkeeping can be significantly relieved thanks to appropriate optimizations. That reduces the probability of expensive mistakes.
- The time saving which can be achieved through EASY Procure-to-pay is The process steps are transparent and automated as far as possible through the workflow used. Thus, for example, appropriate bids can be obtained, orders automatically generated after validation by the purchaser, and invoices can then be automatically posted.
- Thanks to the recording of all relevant data, it is possible to get a picture at almost any time of which production resources are located where in the operation and how they are used in the processor should be used. In addition, everyone has an overview of the approvals in the process which are controlled and validated in the workflow
In summary, EASY Procure-to-pay provides an enormous gain in information as well as savings in expenses, time and distracting routine tasks. With EASY Procure-to-pay genuine competitive advantages can be achieved.