This article was written by Vishal Patel, Research Director at Ardent Partners
Ardent Partners is in the process of publishing a series of reports that are designed to help organizations achieve Procure-to-Pay (P2P) Excellence. The first in this series is called ‘The Path to Procure-to-Pay Excellence: Design for Success.’ The full report, which can be downloaded from this link (it is the second report (from the top) on the page, registration required) is being made available to the public by Basware who has recently developed and launched what it calls the P2P model, this model provides an interactive and interesting view into how P2P programs can mature and advance. Ardent’s report intersects with this model to a degree, as it seeks to explain the prerequisites for long-term P2P success and an orientation on getting started – our view, if you will, on how to Design a Program for Success. Here are some snippets
“There are many paths to Procure-to-Pay (P2P) excellence and many starting points…no matter the initial project approach or budget, one unifying characteristic of Best-in-Class P2P organizations is the holistic, long-term view of P2P that they take from the start.
Where and when a P2P project begins are ultimately less important to realizing long-term success than the development of the strategic plan that is designed to support it. Crafting the right plan or blueprint at the outset of a P2P project will help keep the project focused on the largest opportunities and help ensure that any incremental P2P investments will generate exponential returns. But, before making any technology investment decisions, the relevant process owners and stakeholders across the entire P2P spectrum should be involved in the development of a P2P blueprint.
A successful P2P project can start in many different areas and travel many different paths; but, before an enterprise begins its P2P journey, it should have a sense of where it is going and what it is trying to achieve. Crafting the right plan or blueprint at the outset of a P2P project will help keep the project focused on the largest opportunities and help ensure that any incremental P2P investments will generate exponential returns. But, before making any technology investment decisions, the relevant process owners and stakeholders across the entire P2P spectrum should be involved in the development of a P2P blueprint that models the desired future state processes….
Tight alignment between procurement and AP is essential for a successful P2P project, however, wider collaboration is needed, so input should be gathered and incorporated from other stakeholders including: Finance/Treasury, IT, Line of Business and Suppliers….”
Start with the end-state in mind..