Tag Archives: P2P

What’s Under The Hood? Identifying Potentials Gaps With P2P Providers

4 must-have requirements for your next P2P solution 


Finding the best Procure-to-Pay (P2P) solution to meet your organization’s needs and goals is no small feat. The ideal P2P solution will take the entire organization to the next level through improved realized savings, compliance, and operational efficiencies.

So, how do you identify a best-in-class P2P solution? To start, I’ve outlined these must-have characteristics below.

4 must-have requirements for your next P2P solution 

1. A single data source.

The best P2P solutions host all information in a single database. A single, searchable data source enables a consumer-like online shopping experience that end users and suppliers will embrace. Having a unified data hub:

  • Decreases total cost of ownership
  • Provides one portal where suppliers and vendors can collaborate
  • Improves user adoption by allowing users to quickly find, compare, and purchase across multiple suppliers in one interface

2. Process and data flow visibility.

Visibility enables procurement teams to strategically source goods and services to expand cost saving efforts. Procurement can use data to negotiate better supplier terms and drive effective purchasing behaviors.

Best-in-class P2P solutions have robust analytics with both automated reporting capabilities and the ability to produce ad hoc reports. Users gain strategic insights into and control over real-time savings, spend by supplier, and spend by region, to name a few. In addition to spend analytics, behavioral data on the most popular items purchased, top search terms being used, and search terms with no resulting products are available within a click of a button.

3. Intelligent workflow capabilities.

A best-in-class P2P solution should allow you to trigger workflows based on user profiles. Intelligent, automated workflows in next-generation P2P solutions minimize time spent on manual processes, and can even make existing automated processes more effective.

Many organizations waste time chasing down invoice discrepancies (missing details, quantities do not match, misalignment with purchase orders). Best-in-class systems automate this process with business rules triggered by missing information. Administrators construct and configure the business rules to reconcile the inconsistency, deny the invoice, send it to an employee with AP permissions, or push it through without changes.

Intelligent workflows do more than automate workflows. Data and insights collected on employee efficiencies can reduce tactical labor and better allocate head count accordingly.

4. Dynamic cloud-based software.

When analyzing a best-in-class P2P solution, it’s important to understand how the software will be implemented into your environment. Why? Because how the software is implemented will directly affect your total cost of ownership.

Break down prospective P2P software into these four categories:

  • On-premise: Software is a single instance, built on-premise behind the company’s firewall. IT owns the licensed software and codebase, so only they can make configurations and customizations to the software. Most ERPs exist in this manner.
  • Hosted Cloud (SaaS model): Code is still designed for hosting on-premise, but lives in the cloud. Vendors are responsible for making any changes to the codebase.
  • Built for the Cloud: This is a self-service software. No code needs to be written to make any changes. The business owns the system, making it easier to maintain.
  • Living and Breathing Cloud: This type of software has all the benefits of “Built for Cloud,” but also leverages all of the benefits of the cloud provider (such as Amazon Web Services) to expand and contract. This technology is built for maximum performance, extremely fast loading times, and scales to handle maximum traffic on the system.

The technical capabilities of any P2P solution are obviously important, but don’t overlook these questions during the evaluation process:

  • What do customer references say about this vendor?
  • Will this vendor help lower total cost of ownership (TCO)?
  • Will this solution easily integrate with other solutions in the P2P landscape?
  • How will this vendor support the procurement team and company’s vision?
  • What is the pricing model and fee structure? Does the model allow for growth?
  • What is the implementation plan, and what is the support structure for post go-live? 

When you’re choosing a Best-in-Class solution for your organization be sure to look for signs of integrity and trust. They may not be on your list of requirements, but you’re choosing a partner for your organization, and when the going gets rough you’ll need an organization you can trust above all.

This article was originally published on LinkedIn on 24 April 2020 by Katie McEwen. It has been republished here with permission.

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How to Make Sure You’re Not Being Sold Smoke And Mirrors

Can you spot the difference between theoretical and real ROI? Basware’s Eric Wilson gives the run-down on preventing value leakage in Purchase-to Pay. 

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Buying enterprise software is no easy undertaking – there’s a lot of factors to consider, multiple stakeholders to please and a lot of due diligence that must happen to ensure you can get the ROI that is being promised. Unfortunately, in the world of Purchase to Pay (P2P), most systems available today cannot truly deliver the ROI that is being touted across marketing channels and promised by sales reps because of inherent limitations in the solution.

So, how can you be sure that you are looking at real numbers when comparing P2P solutions and not some fabricated figure that is only attainable on paper?

Ask these two questions

There are two primary questions you should ask when reviewing solutions and providers:

  1. Is the ROI real, or is it fabricated?

Often what happens in the solution seeking process is that a business case is written, either by an internal person, or a consultant, or a solution provider.  The business case includes all kinds of detail about the cost savings and efficiencies the company will achieve by implementing the solution. In the case of P2P, these cost savings are in things like reducing off-contract spend, negotiating better pricing, taking advantage of terms discounts, eliminating paper from the process, reducing or redeploying accounts payable (AP) processing headcount, and similar cost efficiencies. But there are real obstacles to achieving the level of savings being promised, and organisations need to choose a provider that can meet those challenges with real answers (more on overcoming these obstacles later).

2. Will the solution continue providing value in the future, or will it be a short-term win that sends you searching for a replacement system in a few short years?

Too often we are only looking five inches in front of our face when making a technology investment decision. The organisation is only looking at the current problem, not the long-term value. Little functional enhancements in P2P may offer some incremental value, but are not what the future of P2P is about. The future of P2P is all about deriving more value from centrally capturing and leveraging all that transactional data, all those POs and invoices, across millions of organisations. The future of P2P (and even today to a large extent) is about using applications sitting on top of that transactional data to create a competitive advantage. Apps like these will empower you to answer questions like: How am I doing against industry benchmarks? Are there opportunities for better leveraging spend in buying groups to get better pricing? Can I fund company growth initiatives through working capital optimization solutions?

Find out if the solution can process 100% of your transactions

Back to the obstacles we mention above – where do those come from and how can you overcome these challenges? Obstacles arise because of one simple factor: all the cost efficiencies in the business plan are assuming you get 100% of your purchasing and accounts payable (AP) transactions running through the system, and most P2P systems cannot accomplish that level of automation.

You must choose a provider that can help you achieve:

  • 100% Supplier On-Boarding

First, you have to get all of your suppliers connected to your P2P system.  If you don’t, you can’t access all available terms discounts; you can’t truly eliminate paper; you can’t achieve all of the supply chain efficiencies from the business case. Most P2P systems are only designed to connect to the sophisticated suppliers, who can send XML or EDI transactions. What about that long tail of mid-size and small suppliers, who aren’t that technologically advanced? What about those suppliers that still send paper invoices? You must have a solution for connecting them to your P2P system, and it has to be easy for them to do so.

  • 100% User Adoption

Secondly, all your procurement must be processed through the P2P solution, which means the end users have to use it – not just some of the end users, or most of the end users, but truly all of your end users have to be putting 100% of their purchasing through the system. You can’t achieve that status by mandating it, and you can’t even achieve it by having a procurement system that is “user friendly.” The P2P system has to actually be designed to fit seamlessly into the way that end user is already doing their job. In other words, employees use the procurement system because it is truly the easiest way to get the stuff they need, not because it’s been mandated by the procurement department.

  • 100% Spend Visibility

Lastly, all your invoices – for both direct and indirect spend – must be running through the P2P system. This is very rare in the reality of most P2P systems. Most P2P systems are only good at automating the invoices that originated from the indirect procurement solution. What about all your direct invoices? What about all your non-PO invoices, facilities invoices, invoices generated from manufacturing? If the P2P system can’t effectively handle 100% of your invoicing transactions, your ROI just got reduced tremendously, or perhaps even eliminated. The AP side of the P2P system must be a true AP transaction hub for all your invoices, regardless of type of invoice.

So, what does all of this culminate to in the end? One word: data. If the system you choose can deliver real ROI, you begin building a critical asset – a data set of all your financial data in one single location. Then, you can begin using innovative add-ons, like predictive/prescriptive analytics, robotics, artificial intelligence, etc. and see that ROI multiply.

Interested in getting started with Basware? Register for our weekly demo to see how Basware can help you build the business case for real ROI.

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Is P2P Keeping Us Stuck In The Mud?

Still debating maverick spend in your organisation, griping about tail spend or struggling to implement the right systems? Perhaps P2P is holding you back!

This article was written by Eva Milko. 

Is it me or has not much changed in the world of Purchase-to-Pay (P2P)? Twenty-five years have come and gone and yet we continue to discuss maverick spend, we gripe about tail spend and struggle with the right systems and the right processes to enable the simplest of transactions a company has in its portfolio: buying stuff.

In the meantime, those who realised that their value sits in higher areas of supply chain opportunity are doing wonders to automate, digitiSe, codify and outsource P2P work to those who have become transactional experts. Entrusting a part of your procurement house to others is not an easy task, many failing in the process, but I argue that it is somewhat necessary when the world is getting more complex, challenges more broad and opportunities often surpass the risks.

The CPO seat belongs to the one who carefully coordinates all aspects of the source to pay process with a keen eye on what can be standardised, outsourced, digitised, robotised and automated, balancing that with strategic decision making on where to place their precious human resources.

P2P buying systems remain a mystery. They are the most disliked, worked-around and challenged factor by employees in almost any company.  Our research found that only 36 per cent of stakeholders find procurement systems favourable and comfortable enough to engage with.  Our internal stakeholders are screaming “make it easy for us” and yet we continue to throw them into the bowels of twenty process steps, multiple buying channels and layers of authorisations. That’s not to mention lost time and corporate energy.

Procurement Prime

Molson Coors Procurement Office recently hosted an Executive Roundtable on this very subject and we challenged ourselves to envision a world of guided buying where the stakeholder is not exposed to procurement rigmarole but interacts with an intuitive and interactive set of buying steps. We called it Procurement Prime, taking our inspiration from the most admired ordering system in the world; Amazon Prime.

Many procurement executives and their friends in finance will say to me “but wait, we need to mitigate and monitor supplier risk” …..True, and it  is possible with a set of algorithms and predictive tools embedded into your P2P ordering process, alerting the requisitioner at the time of purchase of the supplier’s health status, including fulfillment capabilities, shipping disruptions, banking and payment alerts, further yet, providing alternative solutions.

If you can imagine it, you can plan it. If you can plan it, you can get it done.   Paying attention to how your corporate buyers embrace the P2P steps (or not), diving into their buying methods, listening and empathising will go a long way. Interestingly enough, we found that Procurement functions aligned to the Chief Supply Chain officer have much greater alignment in their organisations than those who report to the CFO. Is is time to change alliances?  Not so fast! Here are a few enablers to make such transformations possible.

Changing your functional and corporate mindset

Let’s start by recognising that your procurement value does not reside in chasing requisitions around the office and beating internal stakeholders into procurement policy submission.  Successful companies are taking a much more customer-centric approach, focusing on relieving the organisation of procurement jargon and building sophisticated systemised methods, especially for more repetitive buying.  Think Guided Buying and think Procurement Prime! This is your future and #tomorrowstartsnow

Changing your skill set

This is pivotal to opening up these conversations and imagining the possibilities.  In procurement, we do not hire enough creative people who are empowered to challenge the status quo and bring forth cool solutions.  We need more inventors, technology savvy, stakeholder centric entrepreneurs who are bold, persuasive and get things done! Yes – these transformations take money, take energy and take skilled resources to get it done, but thinking long term possibilities versus short term barriers will unshackle the organisation from procurement processes horrors and free up resources to address much more interesting issues.

Changing your focus

In our recent study, we found that 84 per cent of procurement organisations remain firmly rooted in functional effectiveness and cross functional collaboration buckets. What goes with that are correlating trends of declining year on year cost savings, the most admired and used procurement metric on the planet.  Enhanced value, total shareholder return, enhanced recognition, awesome jobs and great pay will not come from these areas.

Getting rid of the important but non-essential procurement work and entrusting it to someone much more capable is part of the transformational focus that all CPOs need to consider embracing.  Successful partnerships are built on a shared long term vision, shared values and a solid long term plan.

In our research, we found that that introducing robust supplier collaboration, supplier enabled innovation and total value chain coordination is where procurement can truly make a difference for the organisation.  Some organisations have made the leap but many struggle to make ends meet.

My prediction for these organisations is bold:  transform or die – become de-prioritised, outsourced or automated. #tomorrowstartsnow

This article, by Eva Milko, was originally published on LinkedIn. Eva is Managing Director at Procurement Leaders.