The case for change
The lack of an integrated P2P strategy costs companies money and lengthens end-to-end cycle times. Add in the amount of rework and manual touch points because of the low adoption of digital technologies and it's clear this is an area ripe for transformation.
Most organizations tend to have separate procurement and AP teams, with AP typically reporting into finance due to the accruals and reporting aspect of its work. This split in accountability leads to:
- Fragmented processes with a lack of end-to-end visibility and transparency
- Overall compliance and general accountability issues
- Separate strategies
- Inconsistent metrics and reporting for finance and procurement
Ultimately, this siloed approach leaks revenue and limits the performance of the overall P2P function. Integrating P2P across procurement and finance will boost its effectiveness, and the transparency of shared goals, data, reporting, and scorecards will facilitate and sustain this change.
Integrating P2P will also provide the foundation for the expanded use of predictive and prescriptive analytics to deliver continuous improvements, agility, and efficiencies.