Purchase to Pay

Purchase to Pay can sometimes be a hard sell. In a highly siloed organization where purchasing and finance see themselves as different species, getting buy in to an end to end holistic approach to purchasing is virtually impossible. But without the holistic approach some serious stuff goes wrong. Below are to top 5 problems that occur when purchase to pay best practice is ignored.

Purchase to Pay, P2P and Dynamic DiscountingIt is said that only half of advertising actually works, and you can never be sure which half. Better safe than sorry I guess. You don’t want to cut your advertising budget in half if you lose the half that works. But what about the other way round? What if you knew that 100% of your budget worked – but you chose to only spend half of it? That doesn’t make sense does it? So why then do you do it? “Who? Me?” - Yes you! - Well perhaps you if you have anything to do with Purchase to Pay in your organization.

What gets measured gets managed. It's a slightly tired truism but it's very relevant to Purchase to Pay and, sadly, often overlooked. Most P2P (Purchase to Pay) projects are justified as a means to reduce cost. They introduce efficient processes that allows  purchasing payment and accounting...