Procure-to-pay is integrating the purchasing system with accounts payable to achieve greater efficiency. It is part of the procurement management process and involves four main steps:
- Selecting the appropriate items and services
- Ensuring compliance and order processing
- Reconciliation and receipt
- Invoicing and payment
Automating your procurement process using procure-to-pay software will improve compliance and control between vendor’s contracts, regulations, accounts payable, and buyers. Using an automated workflow process, the integrated procurement-to-pay procedure is an easy way to boost efficiency and increase productivity.
What is a Procure to pay Automation System?
A procure-to-pay or purchasing-to-pay system is an integrated payment system that facilitates the end-to-end purchase and payment procedures. Automated procure-to-pay business solutions have become a modern and more efficient method to boost your business’s productivity and revenues.
P2P Benefits
If you don’t automate procurement, the business will be using manual processes and siloed data and battling in vain to cut the waste your company produces. In the end, any cost-saving solution will not provide an answer to automation’s ability to reduce costs. One of the most efficient methods to reap automation’s benefits is automating the procure-to-pay process.
1. Great Savings
Automating procurement to pay can result in real savings. At the most basic stage, you will save the cost of paper and ink when printing invoices. On the other hand, at a higher level, you can cut down on labor costs, duplicate payments, and late payments with invoice automation.
2. Streamline procedure
Error prevention is a fundamental feature of automation. Transferring data manually between spreadsheets and other systems can lead to catastrophic errors. But, with a simple procure-to-pay method, you can easily transfer data from one system to another. It also makes that data safer than you would with an Excel spreadsheet.
3. Real-time Insights
Digital procure-to-pay solutions offer instantaneous information about your current spending. This means you are less likely to go over budget. This means you don’t have to fret about running into debt and then have to borrow money to pay for expenses.
4. Faster Verifying
Because everything is digital on procure-to-pay systems, invoices can move across your platform in minutes. Through purchase automation, purchase managers can easily verify purchases, items, and services. They can also make payments and transfer documents to the accounting department.
5. Clear Communication
Vendors love being paid faster. But there are other reasons why relationships with your vendors will flourish when you implement the procure-to-pay automation. Self-service portals for vendors allow them to keep their important details up-to-date. It also offers a central platform for clear communication. It also gives you greater insight, meaning you can build relationships with suppliers with time.
Bottom Line
While P2P automation software has been integrated into different industries, many businesses use manual procedures. Utilizing spreadsheets and paper documents can put your company at risk and prevents your procurement process from having a strategic impact.
Implementing Bautomate’s procure-to-pay automation can reduce the time in purchasing, keep your vendors satisfied with timely payments, and give your staff more time. The best part is that with P2P workflow Automation, you will transform your purchasing process into the flexible process required to ensure your company’s competitiveness in a constantly evolving market.
