If the latest events have taught us anything, it’s to expect the unexpected. And with that mindset brings the need to develop agile strategies that can adapt with change and minimize risk when your environment shifts overnight.
I’ve had some very interesting discussions over the last few months with senior Finance and Procurement leaders - some who are reaping the reward of their efforts from previous months implementing a resilient P2P strategy, but also with many who have seen large cracks appear as their staff shifted to remote working, their supply-chains struggled to deliver and their cashflow becoming less predictable..
In this four-part series, we’ll look at why an agile P2P strategy is at the heart of your business strategy, including AP, procurement, and the wider function – driving value and agility into every corner of your business.
Part 1: P2P driving value back into your business strategy
The foundation to an agile strategy is the integration of a best-of-breed P2P solution
with wider investments and in core business systems, such as your ERP, main operational system(s) and the strategic procurement components of a Source-to-Contract solution, which may or may not be part of a single integrated end-to-end Source-to-Pay platform.
Specialized P2P capabilities help drive user adoption through simplicity (more on that in future articles). Combine that with a central data set, it creates full visibility which in turn creates two opportunities:
- Planning and forecasting - historical spend forms the base of a budget and enables an organization to clearly outline where additional investments or cost savings can be made.
- Cost control - using strong processes and technology enables more accurate spend against budget and the ability to make conscious decisions based on a changing environment.
As organizations increase visibility into their spend, your executive team can make quick, but well-informed decisions to adapt with unexpected changes.
Another interesting contribution to business strategy is that P2P efficiency is the foundation to enable early invoice payment at an optional discounted rate. This then offers the opportunity for two things:
- Extra revenue for the buying organization that can be applied directly to the bottom-line or re-invested depending on the strategy.
- Supporting your supply-chain with their cashflow and improved efficiency. This links to your CSR commitments and it also helps reduce the risk to your buying organization by helping keep your critical supply-chain operational.
It would be interesting to hear how you use your P2P to support your organizations strategy, and if you have any questions or need any help you can contact firstname.lastname@example.org