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Purchase to Pay, P2P and Dynamic DiscountingThe case for electronic invoicing is compelling – why would an organization that has invests millions – sometimes tens of millions – of dollars on a finance system want to operate a paper based process in the 21st century? But it’s not as easy as that – especially for global organizations. The wide variety of legislation around the globe creates a Tower of Babel for those attempting to implement electronic invoicing on a large scale. But the situation is beginning to evolve in a very positive way – and absolutely not in a way I would have predicted a few years ago. The electronic invoice is about to die on its feet leaving the door wide open for the new pretender to the AP automation throne – the new electronic invoice.

Purchase to Pay, P2P and Dynamic DiscountingA one size fits all approach just won’t work with purchase to pay. And that’s not just intuition or experience informing  that view. The Hackett Group reported this in their May Procurement Metric of the Month :  “Many organizations define sourcing and supplier management processes by spend category as the basis for understanding how to best source and manage their suppliers. However, they often do not specify how to buy from and pay those suppliers based on the nature of the spend category and the needs of stakeholders (spend owners, requisi­tioners, suppliers, etc.). While companies usually have some type of “n-step” sourcing methodology, they may have tens if not hundreds of different ways to buy and pay for goods and services. This can reduce efficiency and customer satisfaction and lead to higher noncompliance rates and greater risk”

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