The critical imperative of re-thinking your existing Process-To-Pay (P2P) process is to move away from the siloed business functions. Many facets of the conventional Procure-to-Pay cycle is plagued with bottlenecks such as complex workflows, manual operations, and delays. The strategic shift to the next phase of transformation will help organizations identify inefficient spend practices and predict the payment life-cycle.

1. BPO
COUNT ON US FOR YOUR P2P AUTOMATION
STRATEGY
The critical imperative of re-thinking your existing Process-To-Pay (P2P) process is to move away
from the siloed business functions. Many facets of the conventional Procure-to-Pay cycle is
plagued with bottlenecks such as complex workflows, manual operations, and delays. The
strategic shift to the next phase of transformation will help organizations identify inefficient spend
practices and predict the payment life-cycle.
Procure-to-pay (P2P) is the process of obtaining materials and services required to run a business
and making payments for the same. The P2P process is one of the core business activities and is
necessary to run efficiently to manage vendors, optimizing cash flows, and avoiding complicated
process flows.
A P2P system that has been fully integrated can do much more than just obtaining goods and
making payments. Procure-to-Pay needs to be looked at as an effective and efficient solution that
seamlessly facilitates automation, which reduces error reduction and ultimately improves the
organization’s bottom line. Procurement organizations should always be on the look-out to spot
any symptoms of inefficiencies and inefficient processes that hamper the business.
The critical imperative of re-thinking your existing P2P process is to move away from the siloed
business functions. The strategic shift to the next phase of transformation will help organizations
identify inefficient spend practices and predict the payment life-cycle.
The transformation journey starts with a carefully laid out plan after thorough analysis.
Many facets of the conventional Procure-to-Pay cycle is plagued with bottlenecks such as
complex workflows, manual operations, and delays. For these reasons, organizations must build
and implement efficient process flows.
Some key areas that require automation in regards to P2P are:
Purchase Requisition and Purchase Order Approvals
4/27/24, 10:29 AM Count On Us For Your P2P Automation Strategy - Techwave
https://techwave.net/count-on-us-for-your-p2p-automation-strategy/ 1/7

2. Automating Purchase requisition and Purchase order approvals in the procure-to-pay cycle can
save precious time for the procurement teams and requisitioners. To go the automation route,
first, the correct data needs to be gathered and then funneled through the necessary channels of
approvals with an automated workflow.
Undefined workflows and complex hierarchical structures can easily result in unwanted
process delays in requisition and approvals.
Approvals can be automated as per procurement and organization policy, taking the
administrative burden off the procurement function.
There are many documents involved in procurement; organizations still keep soft and hard
copies of all of them. This practice creates redundant steps in the processes, and this also
takes up a considerable amount of time.
Traditional time-consuming, email-based, manual processes can be replaced, far from
seamless, and often require constant follow-ups.
Invoice Matching
One of the most time consuming and complicated tasks for the procurement team is invoice
approvals and matching them with the relevant Purchase orders (PO).
Invoice extraction from emails and collecting hard copies, along with managing them, is
another cumbersome task. By setting guidelines, invoices can be processed once matched
automatically.
If an invoice cannot be reconciled, a trigger will require human intervention. Another added
advantage of automating this function is that it facilitates three-way invoicing matching,
which can help avoid business risks and prepare for audits.
Three-way matching can help highlight any discrepancies in the purchasing process’s three
primary documents: purchase orders, order receipts, and invoices. Invoice automation can
help save businesses from overspending and save valuable time.
Vendor Management
For the procurement team, managing a vast number of vendors becomes too complicated and
complex task. Automating this particular aspect of procurement has two advantages, first being
able to manage vendors in a centralized manner. Second, it saves tremendous time for the
procurement teams, which can be devoted to more strategic aspects.
Switching to an automated solution, procurement teams can streamline vendor selection and
easily track their performance on pre-set criteria.
Supplier information, transaction history, and past orders can easily be mapped and enable
4/27/24, 10:29 AM Count On Us For Your P2P Automation Strategy - Techwave
https://techwave.net/count-on-us-for-your-p2p-automation-strategy/ 2/7

3. better decision making.
Organizations can identify areas of problems or grievance facing the vendor and resolve them
quickly
Account Payables
The last aspect of the procure-to-pay cycle is the payment of the invoices to the vendors; this
particular step involves finance as well. The payments aspect of purchases made has a strategic
element: working capital optimization, exploring discounting options, and favorable payment
terms.
Automated solutions such as dynamic discounting can make the life of the accounts payable
department and procurement much more manageable by identifying discounting
opportunities.
One of the main objectives of finance and procurement is to optimize cash flows, automating
this step gains a lot more importance. With modern solutions, favorable payment terms could
be made that are beneficial for both vendors and purchasers from overspending and saving
valuable time.
Building a base; Prerequisite and essentials for an automation strategy
Every organization is different. Every organization has a set of policies, practices, culture, and
hierarchical structure, which as a combination, is unique to that particular organization. The first
step in the automation journey starts with the organization’s “defining” itself. They are drawing out
how things are done and the areas of improvement to cut down redundancies in the procurement
process. This will serve as an excellent enabler for implementing an automated Procure-to-Pay
strategy. Some key areas that need to be put under the scanner are:
Consistency in the procedure for approvals and same kinds of purchasing
The sourcing process
Access to relevant information
How suppliers are assessed for their performance
Supplier information, transaction history, and past orders can easily be mapped and enable
better decision making
Owing to the complexity of work undertaken by the procurement department, building a practice
of having clean and reliable data becomes very difficult. Clean data is a non-negotiable pre-
requisite; however, an automated process is an enabler to creating clean and reliable data. The
common bottleneck for having valuable data is the lack of a governance model that fixes the
discipline of information input discipline. Even a good governance model cannot be sufficient as
4/27/24, 10:29 AM Count On Us For Your P2P Automation Strategy - Techwave
https://techwave.net/count-on-us-for-your-p2p-automation-strategy/ 3/7

4. capture, interpret, and enter data in a system that may vary. Clean data is the responsibility of
everyone in the organization. Some problems arising due to lack of quality data:
Supplier information and tracking prices
One of the main objectives of finance and procurement is to optimize cash flows, automating
this step gains a lot more importance. With the help of modern solutions, favorable payment
terms could be made which are beneficial for both vendors and purchaser from overspending
and save valuable time
Maverick spending on account of inconsistent information
Compliance issues
Automation strategy demands the right technology; it is the starting point in the transformation
strategy’s execution leg. Choosing the right fit for an organization is the key in this step;
considerations like automation are another critical aspect. With advances in cloud-based
solutions, these technologies have become accessible to almost all sizes of organizations.
Why Techwave?
Techwave’s comprehensive end-to-end support for CFO offices adds significant value to a
business, making us a strategic asset to our clients. Our BPO solutions can integrate into any ERP
systems/tools. We make our clients’ financial functions lean and efficient through automation and
agile technologies that are entirely driven by Metrics. We approach clients’ vision of creating
stable process in Finance & Accounting with innovation, agility, and transparency.
Techwave’s deep Functional and Technical expertise transforms and runs smart and efficient PTP
operations helping its clients :
Conduct Spend Analysis
Accurate invoice processing and timely payments
Operational efficiencies
Monitor vendor performance
Techwave’s P2P services include but are not limited to:
Invoice Processing
Disbursements
AP Help Desk
Compliance
Travel & Expense
4/27/24, 10:29 AM Count On Us For Your P2P Automation Strategy - Techwave
https://techwave.net/count-on-us-for-your-p2p-automation-strategy/ 4/7

5. Reporting & Analysis
PREVIOUS POST
Web-based LiDAR – More Than A Technology
NEXT POST
SUPPLYVU™ – THE SUCCOUR FOR RATTLED SUPPLY CHAINS
RECENT POSTS
More Than Just Implementation: How SAP Services Partners Boost Your ROI
2023 Curveballs and Wisdom to Thrive in 2024 and Beyond
Company Goals vs. Employee Expectations: How can Leaders Empower Shared Success in
2024?
Will Europe Win the 5G Network Race? Policy, Insights, and the Road Ahead
Emerging Trends in Data Security for a Competitive Edge in 2024 and Beyond
CATEGORIES
AMS
Analytics
Artificial Intelligence
AWS
Big Data
Blockchain
BPO
Search here..
4/27/24, 10:29 AM Count On Us For Your P2P Automation Strategy - Techwave
https://techwave.net/count-on-us-for-your-p2p-automation-strategy/ 5/7

6. Cloud
Company Announcement
CRM
Digital
Digital Transformation
EIM
EMI
Engineering
EPM
ERP
Events
Featured
Fintech
IoT
IT infrastructure
SAP
SAP AMS
Validation
ABOUT TECHWAVE
Techwave is a leading global IT and engineering services and solutions company revolutionizing
digital transformations. We believe in enabling clients to maximize the potential and achieve a
greater market with a wide array of technology services, including, but not limited to, Enterprise
Resource Planning, Application Development, Analytics, Digital, and the Internet of things (IoT).
SERVICES
Enterprise Digital Services
4/27/24, 10:29 AM Count On Us For Your P2P Automation Strategy - Techwave
https://techwave.net/count-on-us-for-your-p2p-automation-strategy/ 6/7

7. Techwave © 2024 All Rights Reserved. | Privacy Policy | Cookie Policy |
Engineering Services
Enterprise Business Services
PLATFORMS
SupplyVu™
Autonetics Platform
Hybrid Cloud Management
COSMOS IoT
GLOBAL HEADQUARTERS
13501 Katy Fwy Suite 3305,
Houston, TX 77079, USA.
Ph:+1 281 829 4831
info@techwave.net
FOLLOW US
   
4/27/24, 10:29 AM Count On Us For Your P2P Automation Strategy - Techwave
https://techwave.net/count-on-us-for-your-p2p-automation-strategy/ 7/7