Purchasing and AP: Key questions for transformation
Are your Purchasing and Accounts Payable (AP) processes responsible for lost time, money and talent? Now it's possible for business leaders to find out easily - without spending a fortune or being invaded by swarms of consultants.
Every organization has a Purchase-to-Pay (P2P) process to help it acquire the goods and services needed to operate. But the way this performs will differ dramatically across enterprises.
Some variants are obvious, such as the different finance/ERP systems in place, whether purchasing is centralized or devolved, and the size and nature of annual spend and the suppliers you deal with.
But then there may be other P2P factors that set organizations apart:
- Unhelpful spending practices, mind-sets and quirks can embed over time — but rarely get challenged or even noticed.
- Processes that cause performance bottlenecks and add costs in ways that can seem intractable to the point where people assume that's just the way it has to be.
- Other P2P-related areas within Finance and Procurement can appear opaque: Everyone knows something is wasting resources, but no-one can quite identity why, how or what.