Reengineering the Procure to Pay Process
Many companies have P2P processes that are in disrepair and are focused on improving the P2P cycle. In reengineering the procure to pay process, suppliers and experts recommend that executives apply the following approach:
- Secure top management support for the initiative and budgeting for the project. Develop a list of key benefits and deliverables that will occur as a result of the improvements. Document the cost of leaving the system “broken” in its current state.
- Map existing processes and problems with the P2P cycle. Identify where the breakdowns are occurring and why they are occurring.
- Understand the needs and requirements of the user groups. Many of the people involved—maintenance, planning, project management, suppliers’ accounts payable, buyers, and so on—have specific issues that prevent them from using the existing system. Also, many of the specific sites may have issues that need to be considered in designing the new system.
- Team redesign workshops should be used to bring together key subject matter experts (SMEs) from each of the business units. Suppliers should also be invited to attend and participate, as they may have solutions they have adopted with other customers that may prove to be efficient and simple to use (“Why reinvent the wheel?”).
- Explore existing technology solutions with ERP systems, as well as bolt-on applications. Map out the business requirements and ensure they are aligned with the technology solutions that are available. Begin to estimate cost of deployment, and ensure that adequate planning and due diligence are taken at this step.
- Following the workshops, define the new process, and begin to pilot using a planned technology. Ensure that it takes place in a real environment, with actual nontrained users involved in the pilot before cutting over to the next process.
- Train and deploy other users based on the new processes and systems. Be sure to make the training appropriate to the specific functional unit and user groups.
- Monitor, update, and improve the system, ensuring that catalogs are kept up to date. Hold periodic meetings with suppliers and user groups to solicit input and identify problems with the systems.
As technology and business requirements evolve, the P2P cycle will probably need to be revisited from time to time to ensure it is meeting the needs of internal customers and that suppliers are satisfied with the system.