Leveraging technology to drive business value is an important organizational capability and most procurement departments fare poorly in this regard. Best-in-Class procurement teams have differentiated themselves with superior performance across the primary procurement performance metrics by leveraging their procure-to-pay (P2P) systems and processes to a greater degree and greater effect than their competitors. The results of Best-in-Class organizations show that an investment in P2P automation can pay large dividends. Ardent recommends the following strategies and approaches for procurement leaders seeking to optimize their P2P operations and performance:

User Adoption Recommendations

• End-user adoption remains the critical factor in ensuring a strong return on investment in a P2P initiative is generated. Provide the necessary resources to support new user and on-going training and utilize both “carrots and sticks” to incentivize usage and ensure compliance.
• Understand that the success of a technology initiative is more tied to success in change management than the technology itself. Prioritize attention, time, and resources accordingly.

Supplier Enablement Recommendations

• For many, collaboration with suppliers is the key to attaining the next level of value from P2P activities. Start by identifying those suppliers where the greatest opportunity for value creation exists and begin a formal program to improve communication and share collaboration goals.
• Become a better customer by leveraging tools that reduce the friction between transacting parties like supplier networks and portals, and enable suppliers with self-service capabilities to better manage the relationship.

Program Management Recommendations

• First, get the process right before introducing technology. Involve the process “doers” in the design process and then vet the design in the field.
• The most direct and effective path to P2P excellence begins with a plan that looks holistically across the entire process and prioritizes the requirements of all P2P stakeholders. Take a broad view of the Procure-to-Pay process and work aggressively to link activities that may extend beyond groups and departments, including accounts payable.
• Never lose sight of the process objective (what is the core purpose of performing the activity in the first place) and take a “results first” focus on process design
• Set, track, and regularly report on multi-year targets for the percentage of spend under management. If performance veers from plan, quickly deploy a “course correction” strategy.

Finally, one path to optimization is to leverage current assets and investments to the hilt. Thousands of organizations around the globe have knowingly (and, in some cases, unknowingly) made investments in P2P software that was never deployed. Work with IT to determine if such “shelf-ware” exists and determine if it can meet current needs and align with long-term objectives.

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