In every field, there are leaders and there are laggards. When it comes to purchase-to-pay, the leaders are the ones who have a mature understanding of the depth and breadth of P2P. The laggards, on the other hand, think more simplistically.
What exactly sets the leaders apart from the rest of the pack? They diligently follow this set of industry tips, while laggards either disregard or fail to fully embrace them. We’ve summarized some of the key tips for you below.
So, are you a P2P leader? How many of these tips do you already follow?
1. If the foundation is cracked, nothing built on it is safe.
When P2P systems were first widely implemented 10–15 years ago, they weren’t robust, fully secure, or universally available. Today, they’ve drastically improved, but not all organizations are taking advantage and basic foundations remain incomplete. Leaders always ensure that the foundational elements of P2P are in place because without them, more advanced techniques can’t be used. In contrast, laggards “make do” with archaic systems.
2. Be a team player.
P2P requires procurement, finance, and IT to collaborate as a team. Leaders ensure that these three key internal stakeholders are fully aligned on the P2P strategy and if organizational barriers get in the way, they knock them down. Laggards work around these barriers.
3. Don’t bite off more than you can chew.
Seriously, leave it to the appropriate professionals. As a treasury professional, why would you design a procurement system? As a procurement professional, why would you attempt to explain the detailed nuances of AP? Leaders ensure that each part of the P2P process is designated to the right people. Laggards think they know best no matter what.
4. Oftentimes, to make more, you have to spend more.
The better the P2P solution, the greater the savings. Leaders recognize that the best solution isn’t always the cheapest. They hire the best people and utilize the best services to design and implement the best systems. Laggards often build in-house solutions or look to low-cost or free models to “save money.”