The document outlines the objectives of the procure-to-pay (P2P) process and cycle. The key objectives are to ensure efficient planning and production, timely receipt of quality materials at competitive prices, accurate vendor selection and inventory management, efficient warehouse operations and material handling, proper accounting and payment processing.

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