Procure-to-Pay Digitalisation

Trend Definition 

What is the essence of this trend? What is its impact? 

• Essence: Procure-to-Pay (P2P) digitisation represents the automatisation and optimisation of E2E purchasing activities, from the identification of the need for a product/service to invoice settlement through tools such as JAGGAER
• Impact: P2P digitisation boosts efficiency by up to 25%, enhances accuracy and transparency within the process, reduces risks of product authenticity issues, and improves tracking of supplies

Trend Drivers 

Why is this trend emerging now? What’s changing? 

• Operational Efficiency: Organisations seek digitised procurement to automate routine tasks, reduce procurement cycle times, and minimise human errors
• Rise of Digital Platforms: Accessibility, importance, and effectiveness of digital platforms have grown the concept into a crucial element of today’s procurement environment
• Increased Need for Transparency and Traceability Demand: Global Supply Chain challenges and regulatory pressures underline the need for data transparency and compliance in procurement processes to avoid disruptions and legal consequences

Use Cases 

How to apply this trend? 

• Cloud-Based Order Solutions: Implementing cloud-based order management systems like JAGGAER, SAP Ariba, or Coupa
  Example: Most companies, for instance, NORMA Group, are able to drastically reduce their procurement cycle times, enhance supplier communication, and cut costs through the application of suite solutions
• Blockchain Integrated P2P: Promote verifiable visibility, security as well as traceability of products and eliminate the need for third-party verification from transactions
  Example: Walmart Canada used blockchain to automate freight invoicing, reducing disputes from over 70% to under 1% and accelerating carrier payments

Procurement Relevance & Response Strategies 

How should Procurement adapt its Processes, Organisation, and Strategy?

• Setting the Basis: Integrate P2P systems to enhance data flow as a basis for further AI investments, analysis, and insights and to fully automate invoice processing as well as payments
• Category Management-driven Buying Channels: Based on discounts that should be achieved, the category manager defines the buying channel, supplier, and catalogue view