What is Purchase-to-Pay?
Purchase-to-pay (also known as P2P, procure-to-pay, or req-to-check) refers to business processes that cover requisitioning, purchasing, confirming, receiving, paying for, and accounting for goods and services. The transactional volume is often high and each step within the processes is a potential source of errors. This makes P2P a good target for process mining, which brings visibility to the entire end-to-end process and identifies root causes for problems.
Purchase-to-pay & Process Mining
Through process mining you'll effectively find the business segments with the biggest improvement potential. You'll be able to tell which dimensions, such as vendor, purchasing organization, currency, or PO type, affect the P2P process the most, whether for good or bad.
"Process mining helps you to understand, for example in Procure-to-Pay:
- How does your ordering, procurement process look like?
- How do you raise a purchase order?
- How many approvals does the purchase take?
- What kind of teams are involved in the process?
- How often do you have rework in the process? "
- Fauzia Khan, Business Process Manager, Nokia
If you'd like to know why your incoming invoices are not always connected to purchase orders, why your organization's three-way matching doesn't work the way it should, or what exactly leads to slow processing of invoices that excludes you from getting significant cash discounts, download the brochure below to get started with putting your processes in order.
Purchase-to-Pay related KPIs: