Objectives of p2 p process and cycle

1. OBJECTIVES OF P2P PROCESS & CYCLE

2. 2
OBJECTIVE OF P2P PROCESS
PLANNING
 Efficient planning to avoid production stoppages
PURCHASE CONTROLS
 Receipt of materials as per purchase orders raised
TIME MANAGEMENT
 Ensure timely and adequate availability of the required product type to facilitate timely
production
PRODUCTION CONTROLS
 Production should meet demand
 Ensure availability of desired quality of materials at the right price
VENDOR SELECTION & MANAGEMENT
 Efficient tracking of vendor evaluation
 Approved vendor listing / master files are accurately maintained, and changes to this
listing are done only with proper approvals

3. 3
OBJECTIVE OF P2P PROCESS
INVENTORY MANAGEMENT
 Optimise inventory holding levels
 Monitor the status of pending purchase orders and initiate required actions
WAREHOUSE MANAGEMENT
 Enable efficient receipt, identification, storage and handling of material
 Acceptance of material as per Company quality standards
ACCOUNTING PROCESS CONTROLS
 Accurate and timely recording of quantities received and accepted
 Amounts for goods or services received are recorded in the appropriate period
PAYMENT PROCESSING
 Timely payment to vendors