how finance leaders are transforming p2p into a high value process

March 19th, 2015

Amy Fong

P2P Program Leader

How Finance Leaders are Transforming P2P into a High Value Process

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8© 2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

Today’s Presenter

Amy Fong

Purchase-To-Pay Program Leader and Senior Procurement Advisor

Ms. Fong is an Advisor for The Hackett Group’s Procurement Executive Advisory

program. She has 19 years of experience in both industry and consulting with a

focus on procurement, supply chain and organizational effectiveness. She has

considerable experience in managing complex global supply chain partnerships,

sourcing, supplier performance & relationship management, outsourcing

evaluation and implementation, sourcing and cost improvement for the North

American, Asian, and South Pacific markets. Ms. Fong holds an MBA from

Vanderbilt University and a BS from Syracuse University


The Hackett Group – IntroductionLifecycle support bringing intellectual capital and seasoned practitioners to yield sustainable benefits

We are the global leader in operations

improvement strategies, implementation know-

how, and G&A agility

We address both efficiency and effectiveness

improvements to enable strategic business

objectives

Our insights are fact based, from over 7,500

performance improvement consulting

engagements

Our Best Practices Intelligence Center™ is a

significant differentiator and enabler. It contains:

– 20,000+ performance metrics updated annually

– 1,500+ best practices across 95 business processes

– 1,000+ best practice-based process maps,

requirements and configuration guides

– 1,000+ case studies, implementation examples and

research

We deliver results through a global team of senior

practitioners using a consistent methodology and

best practice-based toolset

Hackett Value Grid™

We help companies

establish and implement

business performance

improvements.


Enabling World-Class: Hackett’s Solution PortfolioBenchmarking, Advisory, Business Transformation

Membership AdvisoryInsight into World-Class Performance

BenchmarkingAssess World-Class Performance

Business Transformation ConsultingTransforms Performance

Deliverables

Peer & world-class comparison

performance metrics

Detailed analysis

Stakeholder survey

Executive presentation

Benefits

Objective comparison to peer

group and world-class performers

Quantify performance gaps

Uncover hidden costs

Prioritization of improvement

initiatives

Deliverables

Strategic direction

Detailed business case

Initiative plans & detailed

designs

Implementation of best practices

Benefits

Reduced cost

Working capital optimization

Enhanced service delivery

Business insight

Sustainable benefits

Speed of solution delivery

Merger integration

Risk mitigation

Deliverables

Best practice research

Advisor access

Best Practice Intelligence Center

Peer interaction

World-Class Progress Report

Benefits

Identify the strategies and

practices employed by Leaders

Validation of current initiatives

Determining what’s possible

(World-Class Performance

Metrics)

Process implementation support

Continuous best practice

adoption


With so many competing

agendas . . .

1. What is top of mind

with executives?

2. What does World

Class look like?

3. How does the P2P

process support

“Value”?

4. Where do I start?


The World-Class AdvantageHigher effectiveness levels to the business delivered at lower cost

Hackett Value Grid™

EFFICIENCY

Lower total costs

Faster cycle times

Higher productivity levels

Better staffing utilization

Higher transaction automation levels

EFFECTIVENESS

Access to the right information at the right time

More engaged, more agile workforce

Value-added supplier leverage

Greater tax effectiveness

Better alignment to the needs of the business

Optimized use of working capital

IT Cost (per end user Equivalent)

HR Cost (per employee)

Finance Cost (% of revenue)

Peer Group World Class

1.12% 46%

0.60%


$6.0K$7.7K

22% 19%

0.59%0.73%

Procurement Cost (% of spend)


23%

$1.7K$2.2K



World Class Companies

Have 47% Less Cost and

the FTEs of Peers

Half the Cost & FTEs

Process are faster (25-50%+)

and more responsive (29%

faster ad hoc requests)

Faster Processes & Support

1/3 less time spent

collecting and compiling

data for analysis vs. peers

More Time to Analyze

2X the average forecast

accuracy of peers; better

quality with SSC (~ 7% annual

quality improvement)

Higher Accuracy & Quality

Word class organization

are 2X more likely to be

aligned with corporate

and strategic goals

Aligned to Strategy

World-Class Finance – It’s More Than Cost, It’s CapabilitiesKey is business partnering and analytic skills required to support the business


All of the effort is about increasing the value from Finance


Top 5 Trends To Watch

1. Building capability – to achieve the #1 priority of being a true business partner

2. Increasing the role of technology – to continue to diminish the footprint and expense of

transactional work AND facilitate better access to decision-making information. Technology

transformation in 2015 is focused on strategic planning, creating a long-term technology roadmap and

better data management, not necessarily new implementations

3. Expanding GBS remains a factor - organizations continue to search for the right combination of

outsourcing, in-sourcing, offshore and onshore work. Knowledge-centric work is the new focus

4. Continuing push toward standardization – eliminating complexity BEFORE looking for

technological or service placement solutions

5. Keeping an eye on risk – monitor the environment and company exposure to ensure that effort won’t

have to be redirected from planned initiatives

2015 Finance and Global Business Services Trends


The Purchase to Pay Process is often under appreciated as a source of business value by both Finance and Procurement

Hackett Purchase to Pay Value Grid™Example of Effectiveness Drivers

• First Pass Match Rate

• On Time Payment Rate

• Level of Spend Visibility

• Streamlined Transaction Strategy

• Level of Centralization

• Training Investment

• Compliance to Preferred Suppliers

• Guided Buying Effectiveness

• Supply Base Consolidation

Example of Efficiency Drivers

• Cost per Transaction

• Transactions per FTE

• Span of Control

• Order Cycle Time

• Invoice Processing Cycle Time

• Percent of Electronic

Transactions

• Level of Automation

Supplier

Master Mgmt

Verification

and

Approval

Invoice

Pre-

Processing

Invoice

Processing

Discrepancy

Resolution

Supplier

Payment

Customer

Inquiry and

Response

File, Store,

& Retrieve

Reconciliation,

Accrual and

Compliance

Purchasing Operations

Accounts Payable

End-to-End Purchase to Pay Process

Requisition

& PO

Processing

Supplier

Scheduling

Receipt

Processing

Item Master/

Content

Mgmt

Catalog

Mgmt

Contract

Master Mgmt

Pcard

Management


While P2P process cost reduction is attractive, the real payback comes from the benefits seen in the broader source-to-pay context

$3-5 million

$40-61 million

Total: $44-66 million

12-14x Benefits

Value Drivers

Baseline process cost: $26 million

Value Drivers and Savings Potential in P2P for Typical $10B

Consumer Packaged Goods Company

Process Efficiency

AP

En

able

d B

usi

nes

s V

alu

e


12%

15%

10%

12%

29%

7%

15%

15%

22%

12%

32%

34%

41%

46%

29%

54%

49%

54%

49%

71%

Monitoring supplier financial health risk

Increasing use of shared service centers

Continuing to attract and retain key talent

Standardizing the AP processes

Ensuring external regulatory compliance

Standardizing the purchasing processes

Implementing "guided buying"

Standardizing buy/pay transactional channels by spend category

Ensuring internal policy compliance

Aligning the end-to-end process strategy, metrics and improvementactivities

Business Critical

High Priority

Key Priorities for P2P Organizations in 2014-2015

Key Takeaways

Compliance, both internal and

external, is P2P’s most critical

priority.

A key focus for the next 12

months is to better align the

end-to-end strategy with

success metrics and continuous

improvement activities.

Monitoring supplier financial

health is becoming less of a

concern.

Source: Hackett P2P Key Issues Study


Longer term, organizations want the P2P process to become more strategic. Outsourcing and offshoring is less of a priority.

Please select all statements that apply to your organization's long-term (the next 5-10 years) P2P strategy.

65%

45%

43%

43%

35%

20%

15%

13%

Our goal is to standardize the end to end P2P processes globally

Our main long-term goal is to evolve the value proposition of P2P to amore of a strategic one

Our long-term goal is to achieve close to 100% automation levels throughtechnology investments

We plan to consolidate all of our disparate P2P systems into a single,global platform

We plan to consolidate the entire P2P organization into a single, globalteam

We do not have a long term P2P strategy or vision

We plan to move the majority of processes into an offshore/low costcountry shared service center

We plan to outsource the majority of the P2P processes to a 3rd partyprovider

Long-Term P2P Strategy (next 5-10 years)

Key Takeaways

Not surprisingly, end-to-end

standardization is the #1 long-term

goal.

What’s concerning is that 20% have

no long-term P2P strategy of vision.

Also, outsourcing and offshoring are

less of a key component of the long-

term strategy than we would have

expected.



How can we drive value in

P2P?

Process Governance and Standardization– End to End Process

Ownership

– Transactional Channel Strategy

– Payment Strategy

Technology– Invoice Automation

– Spend Visibility

– Self-Service

Process Governance

and Standardization


At least half of all organizations have end-to-end alignment of Purchasing and Accounts Payables, a key enabler of performance

Strong alignment: Designated

"purchase-to-pay" owner is

accountable for "end-to-end" process

(e.g. single accountability for the end-

to-end process) or “high-level” of

coordination between Purchasing and

AP

Top Performers: 61%

Peer: 48%

23%

38%

38%

0%

19%

29%

40%

12%

Designated "purchase-to-pay" owner isaccountable for "end-to-end" process (e.g. single

accountability for the end-to-end process)

Separate purchasing and accounts payableprocess owners with a high-level of coordination

Separate purchasing and accounts payableprocess owners with a moderate level of

coordination

Separate purchasing and accounts payableprocess owners with minimal level of

coordination

Top Performer Peer

Degree of P2P Process End to End Alignment

Source: Hackett P2P Study


Designing Effective Process Ownership – The 3 Key Questions

Process Breadth – To what degree

does the process truly extend from

one end of the organization to the

other?

Organizational Reach – To what

extent are elements of the

organization (BUs, GBS and

corporate center) included in the

end-to-end process?

Span of Authority – How are

accountabilities assigned to

effectively manage the end-to-end

process?


Standardized business processes allow organizations to drive efficiency and effectiveness across the enterprise

43%

18%

18%

21%

Maximum global level achievable (over 80% global)

Predominantly global (51%-80% global)

Mixed global and local (21%-50% global)

Local with global in special cases (6%-20% global)

Predominantly local (less than 5% global)

Level of Standardized Processes and Procedures

Across the Business(Percent of all Participants)

Procurement and Payables Work Together to

Streamline and Simplify the End-to-End Process

67%

89%

Peer Top Performer


2.5

2.7

2.5

2.6

2.8

2.4

2.3

2.4

2.6

2.3

2.8

3.2

3.4

3.1

3.1

3.3

2.8

2.7

2.6

2.8

2.4

2.4

Reducing and standardizing the number of available'buy-pay' channels

Improving compliance to preferred suppliers andcontracts

Improving cash generation/preservation throughterms extension, payment clock modification and…

Optimizing payment strategies

Improving internal compliance to defined transactionpolicies

Formalizing roles and practices for supply riskmanagement

Improving the ability to take early payment discounts

Continuous improvement such as Lean or Six Sigma

Improving payment and tax recovery auditingprocesses and tools

Implementing or expanding a Pcard program

Improving Travel and Expense process and toolsEffectiveness

Importance

2014 P2P Process Design initiatives will prioritize channel design, compliance, and payment strategy

Importance and Effectiveness of CapabilitiesMean results, ordered by biggest gap between importance and effectiveness

The Biggest Gaps Between

Importance and Effectiveness

0.8

0.7

Effectiveness scale:

1-No capability, 2-Slightly effective, 3-Moderate, 4-High

Importance scale:

1-Not important, 2-Low, 3-Medium, 4-High

0.6


Transactional Channel

Strategy


Top Performers establish a Source to Settle Channel Strategy then take action to guide requisitioners to preferred suppliers

28% 8% 56%

67%

8%

33%

Non Top performer

Top Performer

No standard buy/pay channels established Not Effective Mostly Effective with gaps Very Effective

How effective are you at driving requisitioners to preferred buy/pay

channels with the right supplier/right price/right buy method?



The end result of a source-to-pay channel optimization is a streamlined Source to Pay process to guide requisitioners

Source Buy Pay

Source Requisition BuyTransmit to

supplierReceive Invoice Pay

Strategic

sourcing

Automated

inventory/

MRP

Automated

(no touch)

Automated

(no touch)

System

receipt

entryE-invoice ACH

User-

defined

sourceE-catalog

SRM

sourcing

cockpitManual

Time and

attend.

system

ERS

(no invoice)P-card

Tactical

sourcing

desk

Pull from

stock

P-card or

travel card

No system

receiptPaper

Wire

transfer

Non-

sourced

No system

required

No PO

(invoice

only)No invoice

Paper

check

Source: The Hackett Group

Staff augmentation spend category example


49%

3%

9%

2%

11%

26%

55%

12% 11%

0%3%

20%

3-Way Match Evaluated ReceiptSettlement

Assumed Receipt Recurring Invoice P-Card (and other) Non-PO

44%

5%9%

0.4%

11%

31%

48%

11%

17%

0.2%

8%

15%

3-Way Match Evaluated ReceiptSettlement

Assumed Receipt Recurring Invoice P-Card (and other) Non-PO

Peer Top Performer

Top Performers have a well thought out, blended transactional strategy that balances efficiency with control

Transactional Strategy

(Percent of Transactions)

Transactional Strategy

(Percent of Spend)

TP = 37% on Optimal Channels

Non-TP = 25% on Optimal Channels

TP = 78% on PO/Contract

Non-TP = 63% on PO/Contract


Payment

Strategy


X

X

X

X

The appropriate working capital solutions depend on your cash strategy, degree of automation and supply base composition

Positive

Impact

Moderate

Impact

Neutral

Impact

Negative

Impact

Solution

Payment terms

management

Early pay discounting

Dynamic discounting

Impact on buyer

Working

capital

P&L Process

X

X

X

X

X

X

Impact on supplier

Working

capital

P&L

X

X

X

X

X

X

Purchasing cards1

Optimal purchasing

channels

E-Invoicing X

X

X

X

X

X

Partial Summary of P2P Strategic Levers

X

X

Notes:Partial summary of S2S strategic levers1 Assumes monthly settlement cycle with issuing bank


Improvements to Working Capital and spend reductions from payment strategy initiatives are relatively easy to measure quantitatively but require end to end collaboration

Percent of Suppliers for Which Standard

Terms are Applied

61%

95%

Peer Top Performer

69%

82%

Peer Top Performer

Early Payment Discounts Taken as

a Percent Of Available

Days Payable Outstanding

40 48

Peer Top Performer

Note: DPO is Self Reported based on internal

methodology

Negotiated

by

Sourcing

Executed

by AP



Although pursuing discounts and extending payment terms generates savings and helps manage working capital, for the majority of organizations it is still not a priority

Strategy for Early Payment Discounts(Percent of all Participants)

13%

13%

19%

7%

22%

25%

Aggressively pursue ALL available discounts and focus on expandingthe availability of discounts through supplier negotiations

Aggressively pursue ALL available discounts with little focus onexpanding the availability of discounts

Take discounts when earned with no specific goal of taking ALLavailable discounts

Always take available discounts regardless if paid within discount term

Little focus on taking discounts

Dynamic Discounting Strategies(Percent of all Participants)

19%

14%

30%

42%

Allow suppliers that are setup on standard net payment terms with nodiscount to elect an early payment discount once the invoice isapproved for paymentTake a pro-rated portion of a discount if paid before net term but afterdiscount term (e.g. payment term is 2% 10 Net30, if paid on day 20take a 1% discount)None currently in place but are implementing or currently evaluating

None planned at this time


Technology


2.4

2.3

2.1

2.3

2.7

2.1

2.7

3.5

3.4

3.1

3.2

3.5

2.9

3.4

Enabling electronic invoicing through third partynetworks, supplier portals, or EDI

Implementing or expanding use of electroniccatalogues

Introducing technology to promote self-sufficiencyin accounts payable

Guided buying to preferred supplier, pricing andbuying channel

Improvements to the current e-procurement system

Driving supplier adoption of a connectivity strategy

Automating paper-based invoices using imagingtechnology, OCR, or workflow

Effectiveness Importance

The Biggest Gaps Between

Importance and Effectiveness

2015 P2P technology initiatives: A large gap exists between electronic invoicing importance and effectiveness

Effectiveness scale:

1-No capability, 2-Slightly effective, 3-Moderate, 4-High

Importance scale:

1-Not important, 2-Low, 3-Medium, 4-High

How important and effective are the following capabilities for the

success of your organization?

1.1

1.1

1.0

Importance and Effectiveness of Capabilities

Key Takeaways

Electronic invoicing is an important

capability but organizations are

struggling with how to best implement

it.

Enabling supplier adoption of these

solutions is currently ranked lower in

importance. To succeed with these

initiatives, supplier enablement needs

a higher level of attention.



Cloud Strategy: Most P2P Organizations are planning a hybrid approach to migration to the cloud

Strategy for Adopting Cloud Based Solutions (i.e. Software-as-a-Service)

25%

13%

45%

18%

No plans for cloud adoption - Our P2P solutions are primarilyinstalled on site and will remain that way in the future

Today, our P2P technology is primarily installed on site but we arepiloting cloud solutions

Our strategy is to leverage a combination of on-premise and cloudP2P solutions to best meet our goals

Our strategy is to eventually migrate all P2P solutions to a software-as-a-service or cloud deployment model

For P2P technology, which statement best describes your strategy for adopting cloud based solutions (i.e. software-as-a-service)?


Invoice Automation


Invoice Automation

Advanced Invoice Processing

Electronic Invoicing

Supplier Portal

Third-Party Network

EDI (via VAN)

File Upload / Self Entry

PO Flip

Invoice Capture

Scan-based

Fax-based

Email-based

Invoice Elimination

Evaluated Receipt Settlement (ERS)

Purchasing Card(P-card)

"Invoice automation" can refer to any solution that is designed to mitigate the inefficiency of traditional paper invoice processing.

Invoice is received in an

electronic format from

the supplier enabling

automated data entry

Invoice is not received from the

supplier

Invoice is received in

a non-electronic

format and/or requires

manual intervention

for data entry

In practice, nearly 60% of all invoice line-items are still

received on paper

The latest generation of imaging technology is

sometimes referred to as intelligent data capture (IDC),

advanced recognition (AR) or intelligent document

recognition (IDR) in Hackett research and elsewhere.

Invoice capture includes imaging of a physical document

(transmitted via mail, fax, email), enhanced recognition of

the image, extraction and validation of digital

information, and workflow connectivity with downstream

systems


Top Performers leverage electronic transactions for invoicing and payment far more than Peers

Percent of Electronic Invoices and

Invoice-less Transactions*

Percent of Electronic Payments as Percent of

Total Payments

25%

64%

Peer Top Performer

62%

74%

Peer Top Performer

*Invoiceless transactions includes Evaluated Receipt SettlementSource: Hackett P2P Study


27%

50%

44%

33%

23%

25%

70%

60%

60%

40%

30%

20%

Direct connect through Internet(supplier portal solution)

Email-based solution

Value Added Network throughnon-Internet (EDI through VAN)

Third-Party Network throughInternet (EIPP)

Fax-based solution

Primarily paper based - Noelectronic strategy exists

Peer Top Performer

EDI is no longer the dominant connectivity strategy, Top Performers are leading the transition to web-based solutions

Primary Vendor Connectivity Strategies(Percent of all Participants)


?

Spend Visibility


Top Performers have higher levels of visibility to spend at the line item level, a key contributing factor to spend management effectiveness

Percent of Spend Visibility with Supplier,

Category and Line Item Level

54%

64%

Peer Top Performer


Requisition

1

Order

2

Receive

3

Complete purchase order form

(either paper or electronic)

based on approved Requisition

Route PO to appropriate

management authority for

approval (Requestor should be

different from individual

ordering)

Route order to supplier (either

electronically via EDI or via fax)

Confirm receipt of PO with

supplier

Process received goods or

acknowledge completion of

services

Communicate receipt of

goods or services to AP for

processing

Complete requisition form

(either paper or electronic)

Route requisition form to

appropriate management

level for approval

Route requisition to

Procurement for

processing

Pay

4

Receive invoice from

supplier

Check invoice for accuracy

Perform match (either two-

way or three-way)

Take discount

Send payment to suppliers

either electronically or via

paper check

Manage

5

Conduct spend analysis to

check contract compliance

and continuous sourcing

Review supplier

performance

Manage discounts and

rebates

Assess overall contract

compliance

Spend Visibility Benefits to the Procure to Pay Process

Effective spend analysis creates improvements at almost every stage of the procure-to-pay process:

Introduction

Results in list of

approved vendors

which streamlines

requisition process

Identify and reduce

non-compliant or

“maverick” spend

Reduces financial savings

leakage by driving

compliance to negotiated

contracts

Increased visibility into

enterprise-wide spend and

improvements in reporting

capabilities

Visibility into spend enables the management of expenditures and ongoing spend efficiencies

Benefits of spend analysis


Benefits achieved through automated spend visibility are significant

Benefit Type Actually Achieved

Reduced the amount of time required to complete spend analysis by: 33.33%

Increased the % of total spend being analyzed and reported on by: 33.67%

Increased the accuracy of spend reporting by: 38.33%

Identified and reduced non-compliant or “maverick” spend by: 18.17%

Identified cost savings opportunities leading to additional strategic sourcing

savings of (on average): 15.17%

Identified opportunities and was able to consolidate the supply base by: 8.00%

Source: The Hackett Group’s Spend Analysis Poll, February 2015


Fully automating spend analysis has major benefits

Today, only 19% of companies describe their spend analysis process as fully automated.

33% report having a completely manual spend analysis process.

Companies who have highly (versus partially) automated spend analysis solutions experience:

• 258% greater improvements in the time it takes to complete analysis.

• 155% greater increase in the amount of spend being analyzed

• 109% greater improvement in spend reporting accuracy.

Spend analysis is the process of aggregating, cleansing, and analyzing corporate spending data for the

purposes of reducing costs and improving operational performance.

Spend analysis can be an important competitive advantage for companies that use it, especially in highly

competitive industries. It enables companies to out-think and out-execute their competitors by helping them

lower costs and leverage supplier relationships.

Spend analysis (and the visibility it enables) provides the necessary foundation for procurement organizations

to make better, more informed sourcing decisions.

Key takeaways


Outsourcing spend analysis also drives greater benefits

46

35%

31%

36%

44% 43% 44%

88%

53%

73%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% reduction in the time required to completeanalysis

% increase in the total spend being analyzed % increase in spend reporting accuracy

The Benefits of Implementing a Spend Analysis Tool

Only internal staff are used Partially outsourced Completely outsourced

Key takeaways

Companies who completely outsource

data collection (versus use internal

staff) experience:

• 151% greater improvements in the

time it takes to complete analysis.

• 71% greater increase in the

amount of spend being analyzed

• 103% greater improvement in

spend reporting accuracy.

Source: The Hackett Group’s Spend Analysis Poll, February 2015

Self Service


Top current and target uses of supplier portals

Onboarding of new suppliers

Maintenance of existing supplier master records

Order tracking (order history, open POs, order acknowledgements, etc.)

Invoice tracking and processing

Supplier performance and relationship management


Top performers tend to utilize self services solutions more often, and when in use, implement more broadly

56%

21%

5%

8%

8%

3%

46%

22%

14%

11%

6%

Email

"Live" on the first call

Self-service on the Internet /Intranet

Voice response (IVR or VRU)

Voice-mail, requiring a return call

Other means

Peer Top Performer

What percent of inquiries are answered through

the following methods?

(All Participants)


Average Percent Of Inquires Through Self-

Service

(For Those Using Self-Service Tools)

20%

58%

Peer Top Performer


Technology Drives Efficiency: Among organizations with the highest level of AP technology implementation, transaction costs are lower and cycle times are faster

$4.95

$8.12

AP Automation Users Non-Automated APOrganizations

Cost per Invoice by Level of AP Automation

9.9

11.2

12.5 13.3

PO InvoicesNon-PO Invoices

Invoice Cycle Time from Invoice Receipt Through Approval for Payment

(Average Business Days)

AP Automation Users Non-Automated AP Organizations

- 40%



With so many competing

agendas . . .

1. What is top of mind

with executives?

2. What does World

Class look like?

3. How does the P2P

process support

“Value”?

4. Where do I start?


Summary of current P2P themes

Strong focus on end to end process standardization, especially globally

Increased focus on external regulatory compliance over the last year,

consistent with our enterprise-level study results

Technology enablement and consolidation is important

E-Invoicing implementation is a still top technology priority; self service

may be next

Wide gaps still exist in buy-pay channel optimization and requisitioner

compliance

Outsourcing and offshoring P2P are still lower on the list for most

companies


Accounts Payable Capability Development Checklist

Information

Capture spend data necessary for spend analytics and compliance

Standardize and automate supplier validation and onboarding process

Formalize supplier master file maintenance program with well defined

accountability

Governance & Organization

Establish single End-to-end P2P process

accountability at an enterprise level

Standardize processes globally

Service Placement

Activity is centralized across the enterprise

Utilize Center of Excellence and Shared

Service models appropriately

Enabling Technology

Automate invoice receipt, routing and approval workflow

Implement self-service solutions for supplier data updates,

inquiries, and dynamic discounting

Utilize imaging technology for storage and retrieval of invoices

and related documents

Process Design

Centralize invoice receipt

Optimize supplier payment strategy

Develop Source to Pay channel strategy,

leveraging 2 way match where feasible

Skills & Talent

Training and hiring standards to ensure

skill levels of resources are consistently

high

Focus resources and budget more on

planning and strategy than transaction

processing

Process Sourcing

Evaluate outsourcing options where

appropriate

Assess opportunities to offshore

routine activities

Service

Delivery

Components

Information

Service

Placement

Process

Sourcing

Process

Design

Enabling

Technology

Skills &

Talent

Governance

&

Organization


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how finance leaders are transforming p2p into a high value process

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