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Procure to Pay Framework
- 1. KNOWLEDGE YOU CAN SHARE: P2P CHECK LIST Yann Cherel – M: +41 79 767 62 98 P2P lean value stream Success factors P2P support Risk op2miza2on Risk assessment -‐> remediaQon planning Preven2ve controls Reac2ve controls Opera2ons & policies Risk assessment SODs/GOAS system accesses, data integrity, spent ceiling, budgets, Vendor enablement Approval rules Repor2ng & reviews, audit logs Vendors: on boarded/one Qme New contracts / call for tenders User lists / authority levels Manual bookings/excepQons Backlogs: PO/invoices/Receipt not vouched/suspense accounts, overdues, open POS External compliance: SOXs, confidenQality agreements, SLAs targets, incremental numbering, payments advice, VAT, intrastat, transacQon security, data retenQon (archiving) P2P -‐ Efficient opera2ons – Processes Sourcing -‐Tendering: SODs, audits, workflows, rules Contract, demand /supply planning, RFx (RFI,RFP,RFQ) -‐Savings: direct spend (PPV BOM (FX/price variance)) , indirect spend (cost avoidance/hard savings), QA value analysis ( supplier TCO, CMOs) -‐Sourcing security -‐Vendor life cycle (enable/ change/ block/ delete ), preferred suppliers (master service agreements), spend categories, self service -‐Sustainability – ethics (labor, business integrity, health& safety, environment) Request -‐EDI, e-‐proc (Ariba/OB10), PO (blanket, automated), PR (catalog, punch outs, free text) , P cards, no PO invoices, non invoice payments, Automated /parQal recepQon/escalaQons, 2-‐3-‐4 way match Process & pay Efficient OCR/ indexing rules (field accuracy) Cost center allocaQons Payment automaQon SWIFT IBAN, direct debit management, reverse factoring, remiiance advices, withholding tax, down payments, credit notes, self billing invoices, non invoice doc (dunning leiers/statements/other) KPIS Opera2onal Strategic Leading OCR/Indexing accuracy Master data integrity Backlogs /receipts not vouched,% electronic , Low value spent, ageing Managed spend % Missed discounts ExcepQons, Credit notes Supplier consolidaQon Controlled spend Lagging Throughput yield (autoposQng/touchless) Maverick spent PO coverage, Unit cost Procurement RO Working capital (DPO), On Qme payments Savings: sourcing / operaQonal Order cycle Qme,DPN P2P benefits delivery (customer delight) Manufacturing Easy ordering maintenance/ stock replenishment, easy recepQon (4YM) Procurement Easy bidding / strong controls Swik dispute resoluQon-‐bad goods OperaQons (Indirect Spent) Easy ordering: e-‐market place, Full visibility P2P life cycle, excepQons Finance , legal & compliance, IT, Audit Easy root cause analysis (e.g. blocked invoices, other backlogs) TransacQons security, traceability ExcepQon monitoring P2P master plan Mission, Vision, SWOT, criQcal success factors P2P blueprint To be process maps, control points Procurement policy Opex guidelines SOPS (biz model) Bidding process, payment terms / NO PO No pay-‐excepQons , templates: forms, authorizaQon levels ,tolerance level, vendor onboarding, roles descripQons Handbook User support Intranet / Corporate social media: training material, FAQs, DTPs./glossary/videos Issue / Enhancement request log Databases /master data: contract /RFX/ suppliers /accounts/cost centers P2P maturity matrix QuanQtavely Managed Internal focus, documentaQon complete StandardizaQon in progress KPIs on past acQons, integrated workflows OpQmized: conQnual improvement External and objecQves focus, best pracQces, conQnual improvements, automated controls, rare excepQons rare, no backlogs, global harmonizaQon Governance P2P steering board / advisory commiPees Evaluate Set direcQon Business cases/ Road maps Policies, SLAs Direct Project steering Allocate resources Monitor Efficiency of controls & compliance ReporQng integrity Compliance P2P management Plan/Build/Run/Monitor operaQons – Service & process owners: Sourcing – Procure – control – process – pay – capQve/outsourced processes, Strategic/OperaQonal P2P maturity Risks OperaQons (processes) Benefits Strategy Implementa2on Business model (maturity matrix), Structure (capQve/outsourced) Road map: Roll out by plant/ country/BU Service (value creaQon: design, transiQon, manage Program