Mathematics is fascinating, not simply because of its mystery - detailed understanding of modern mathematics is beyond most of us - but also because of the amazing theoretical journey that mathematicians go on to reach practical destinations. So called “imaginary” numbers had been described in...
Purchase to Pay or P2P (Procure to Pay if you prefer) is a misnomer in most organizations. In reality, P2P is owned and managed either in the procurement organization - in which case it should more accurately be called P2 - or it’s owned in...
Standards in B2B are a waste of time. They are a waste of energy, intellectual capacity and money. They have no place in the business world in 21st century. For as long as I can remember, the great and good in the B2B world have espoused the use of standards as a fundamental component of business communication in the technology enabled world - yet they have simultaneously complained abut the number of standards that are out there. Surely its about time that we all realized and accepted that further attempts to evangelize and impose standards will not work. They’ve never worked in the past. If they had, there would not be so many standards today (not to mention the numerous standards bodies). We normally learn from our mistakes - once bitten, twice shy. In the B2B world - once bitten, twice bitten.
There's much talk about dynamic discounting and how it can yield significant returns on investment but dynamic discounting is absolutely not the first step in extracting value out of purchase to pay optimization - it is the final step. Let's go back to basics and remember that P2P is not a core function of an organization. Rather, it supports the core functions such as sourcing and procurement, accounts payable and finance. Purchase to pay develops and installs synergy across the physical and financial supply chain and uses technology to support better ways of working to reduce the cost of doing business with suppliers.
A solid purchasing process saves money, reduces risk and creates control. What is there to not like about it? But implementing a purchasing process successfully is no walk in the park. Many organizations have been persisting for years without success so we’ve formulated the "Seven...
A 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”
At a time when wise use of resources, both from a commercial point of view and an environmental point of view, is seen as a priority, Purchase to Pay stands proud having had an environmentally friendly heart even before the green band wagon rolled into town. And that’s why I discard my cynicism when I see OB10 launching its Green program.
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