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Digital purchase-to-pay – accelerate processes in procurement management

It’s always time for integrated digitized procurement processes. This much in advance: easy Request stores the information from all procurement subprocesses in the “digital purchasing file” – that creates oversight and is worth it.

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Procure-to-pay (P2P) is a bundle of measures which contribute to making the entire production resources chain, from procurement to payment, as fast, secure and cost-efficient as possible. 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!

Purchase-to-Pay in three steps

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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.

For a 360-degree view in Purchasing

It’s always time for integrated digitized procurement processes. Time for easy Request, the new application that represents a central role in the range of easy solutions for purchase-to-pay processes. This much in advance: easy Request stores the information from all procurement subprocesses in the “digital purchasing file” – that creates oversight and is worth it. On to efficient purchasing, for more performance, transparency and enjoyment at work. But see for yourself what your options are for optimizing purchase-to-pay together with easy.

Why efficiency in procurement pays

Purchasing has always been one of the existential functions of a company. The prioritization of its tasks does depend on the overall economic climate – in down times, companies rely on efficiency and reducing costs in the purchase-to-pay processes, in good times, they want to ensure smooth reliability of supply. With traditional, paper-based procurement methods, both goals are difficult to achieve, in spite of a functioning supply chain. Just think about global companies which consist of various organizational units and ultimately form one international company. And to be honest, achieving both goals is desirable – reliability of supply AND cost reduction. Thanks to easy Request, you can approach this goal. But first, the question of what actually makes up a procurement process like this?

Purchase-to-pay and its subprocesses

Greatly simplified, the procurement process in companies can initially be divided into two subsections. On the one hand, buying (purchase) – and on the other invoice processing/accounting (pay). Together, the two form the purchase-to-pay process. The entire process is made clear by the following graphic:

It is not difficult to see that both sides of the purchase-to-pay process consist, in turn, of individual subprocesses. And easy Request has major advantages for both sides. First of all, easy Request forms the digital link between purchasing and invoice processing/accounting, thus closing the gap in the procurement process. Because easy Request stores all generated information in the digital purchasing folder. That way, the information from the above-mentioned subprocesses is available to every authorized person and forms the starting point for automated workflows in the individual subprocesses.

The purchase – advantages from digital purchase-to-pay with easy Request

On the purchasing side, individual departments involved gain the following advantages from easy Request:

  • The identification of the demand for goods: thanks to easy Request, responsible persons are in the advantageous position of being in the picture or being informed of upcoming demands at any time.
  • The authorization of the purchasing process: A role-based rights system allows approval by supervisors while taking the budget into account – automated or by click.
  • Research of possible suppliers in various catalogs by Purchasing employees
  • Request for tenders: manual or automated via templates

Purchase-to-pay – advantages for goods receipt, invoice processing and accounting

Naturally, the advantages of easy Request continue here. Once the start of the purchase-to-pay process is digitized, the collected information is also available for the subsequent subprocesses. That has advantages for the automation of processes dealing with the processing of incoming invoices.

  • Goods receipt: Always in the picture, even in the delivery of goods – thanks to the scan-in of the delivery note and, if available, the incoming invoice, amounts and price totals are available for verifying comparison. What was ordered in what amount and what was delivered. This question is automatically answered here.
  • Invoice receipt: The perfect start for automated incoming invoice processing. Because all the necessary information is now available to the accounting department.
  • Payment: Thanks to the accelerated and transparent purchase-to-pay process, all payments can be made on time. An additional benefit in regard to early payment discounts.
  • Bookkeeping: Thanks to the advance approval process and the insight into the complete digital file, bookkeeping processes take place faster and more securely.

Of course, the purchase-to-pay process can be expanded, depending on the requirements of the process flows in the company and the internal company structure. This opportunity should not be missed. Because a functioning purchase-to-pay system gives companies a financial edge. In many enterprises, costs in the production process make up the majority of expenses, along with labor costs. Savings in the supply chain in particular have strong effects on a company’s liquidity.

Purchase-to-pay processes flow into the digital purchasing file

Every authorized employee always has an eye on their area of responsibility in the procurement process. Perfect workflows ensure the greatest possible room for automation. That saves time and money – and relieves pressure. Missing and forgetting are things of the past.

Furthermore, digital purchase-to-pay affects almost all other departments thanks to its 360-degree view.

  • The purchase-to-pay process delivers extremely interesting data and information. The exchange with suppliers is also always a sort of market analysis. Digital purchase-to-pay transforms this analysis into an ongoing process – that way, you stay up-to-date and are always aware of new developments and trends.
  • easy Request optimizes the purchase-to-pay process right from the beginning – with the result that even bookkeeping benefits. They are relieved, and the probability of expensive mistakes is reduced.
  • Shortening of process cycle times in purchase-to-pay: The time saved by easy Request is enormous. The subprocesses and steps remain transparent and can be automated to a large degree through workflows. That way purchasers provide automatically adjusted offers and also create automated orders after verification. Associated invoices can also be automatically posted.
  • Thanks to the data recorded by the purchase-to-pay process, you always have a precise picture of what production materials are located where in the operation and how they are used or should be used in the process. Everyone also received an overview of the controlled approvals validated in the workflow within a process
  • A little bonus on the side: easy Request is mobile-ready and available in a DMS app. That way, you have the complete purchase-to-pay process everywhere with you in just one app.

The positive effects of the digital procure-to-pay process certainly extend far beyond the described optimizations. easy Request connects the various sections of the company through the P2P process. All of the information generated makes its way into the digital purchasing file – the “digital brain” in the procurement process. That is also true for the information from the incoming invoice processing. Efficient purchase-to-pay – get started now with easy Request.

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