PROACTIS Blog

End-to-End Procurement – Plugging the Gaps

Charlotte Sutton
Charlotte Sutton,
PROACTIS
Driven by the changing expectations of Procurement, there is now a growing vision of what ‘end-to-end’ procurement looks like and a conscious effort to move toward that vision.
Driven by the changing expectations of Procurement, there is now a growing vision of what ‘end-to-end’ procurement looks like and a conscious effort to move toward that vision.

At PROACTIS, we see end-to-end procurement organised around two complementary and highly integrated procurement sub-processes we call source-to-contract (S2C) and purchase-to-pay (p2P). S2C includes the supplier management, sourcing, contract management and catalogue management functions Procurement uses to create value, and P2P provides the framework that guides employees to established suppliers and agreements to fulfil their needs so that the organisation can consistently capture value created by Procurement. Of course P2P also ensures proper up-front purchase authorisation and drives PO-based purchases which, in turn, enable automated invoice processing at the back end. It also captures detailed spend history to drive spend analysis that enables even more value creation in the S2C cycle. Together, these two sets of inter-related processes create a closed-loop, end-to-end procurement process.

PROACTIS End-to-End Solutions



As evidence of the trend towards this vision, Gartner recently stated that they are seeing a large increase in interest in what they call ‘source-to-settle’ solution suites. They say that very few organisations have yet implemented the full range of such suites, but that many have a desire to do so and are taking serious steps toward that goal today.

We are seeing this trend ourselves. Until recently, the great majority of PROACTIS clients did NOT start their relationship with us based on an end-to-end procurement vision. They just wanted to implement a good P2P system, or maybe supplier management or contract management. But now we have a growing number of clients that have achieved their initial goal and are beginning to develop an ‘end-to-end’ vision.

Those clients are beginning to ask us to help them start ‘plugging the gaps’ where they have savings leakages. Many are interested in adding the S2C cycle to their P2P environment, or to fill in pieces they have not tackled to date. Others are looking to go after new ‘pockets of spend’ by integrating peripheral purchasing activities like fixed assets or MRO into their P2P system so they have a more complete picture of spend in one place. Others are focusing in on ‘cracking the culture’ to spread their procurement processes to a broader range of the organisation and a higher level of employee adoption. There are many different paths organisations are taking, but more and more have their eye on ultimately achieving their vision of end-to-end procurement and the resulting high percentage of Spend Under Management.

To find out more, download 'Procurement Automation: Key Trends & Hot Topics'