This article was written by Vishal Patel, Research Director at Ardent Partners
In our last article, (found here), we talked about Ardent’s P2P research series that is aimed at helping organizations establish a solid foundation for their P2P programs. We also offered a few excerpts from the first document in the series – ‘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 on page, registration required) is being made available to the public by Basware as part of their P2P model initiative.
One key message in this report is: the importance of alignment. Yes, alignment between the two process owners of P2P (procurement and accounts payable) and alignment between all of the relevant P2P stakeholders (i.e., Finance/Treasury, IT, Line of Business and Suppliers). These constituencies must come together and gain a deeper understanding of the current state and future plans of the P2P process. The stakeholders will help the group collectively define the scope and timing of the P2P initiative, prioritize objectives and investments, and understand the impact of automation on all of the different stakeholders.
The report also helps readers gain an understanding of the key objectives and goals of procurement and AP groups. For example, some of top objectives for AP groups are to improve invoice processing efficiencies and customer service as well as gaining better visibility into process, line item detail, and supplier performance. Procurement on the other has different goals, e.g., increasing savings and spend under management and improving contract compliance rates.
Superior program design remains a critical element in the speed and level of P2P excellence – so, here are a few important considerations in the design of your P2P program (1) Place the current initiative(s) in the context of a larger P2P initiative and vision (think long-term and think big!) and (2) Engage stakeholders early and often.