Purchase to pay automation uses software and other technologies to help businesses more easily request, purchase, receive, pay and account for their goods and services. Often referred to as P2P, this system seamlessly connects the entire process from identifying a need, to planning, budgeting and procurement to payment, with the touch of a button. P2P systems enable organizations to monitor and control a transaction’s entire lifecycle and provide insight into a company’s cash flow and financial commitments without the need for manual intervention.
Companies using purchase to pay automation systems enjoy a wide range of valuable benefits. They include having a clear understanding of financial commitments at the beginning of the purchasing process instead of when the invoice arrives. P2P automation results in improved efficiency, increased visibility of finances and procurement, reduced processing times, enhanced control and the growth in cost savings while using less manpower. Automated P2P systems can capture and control capital, credit card, purchase order and non-purchase order and reimbursable spending and enhance process efficiency and financial rigor and cut costs substantially.
Streamline Business Processes
One of the many benefits P2P automation provides is the ability to help businesses to streamline their processes throughout the entire procure-to-pay value chain. While supply chain software vendors were among the first to identify the power of this technology, it has been quickly embraced by savvy business leaders and adapted for use in all aspects of purchasing. P2P automation has enabled accounts payable, purchasing and other once disparate business functions to be brought together and viewed and controlled as a whole. Formally just another 1990s buzz phrase, P2P automation has now evolved into a recognized discipline of great value.
Overcoming Operational Challenges
P2P automation has helped to increase the level of collaboration between finance and procurement and enabled businesses to overcome challenges in finance and purchasing. It has presented a new and better way for businesses to harmonize ‘buyers’ and ‘payers within their organization and use technology to overcome operational challenges. Coordinated and collaborative work between finance and procurement departments using integrative knowledge sharing systems and tools like P2P automation can reduce supply chain risk, improve a company’s business landscape and prepare them to succeed for years to come.
How Automated Processes Help
Automating the purchase-to-pay process can help to simplify business operations, make them become more competitive and not only save money, but get better value for the money that’s spent. Companies that automate their purchase-to-pay process make smarter buying decisions, become more financially agile and free up more of their working capital that had previously been entangled within the supply chain. A more streamlined financial and procurement process using automated P2P systems simplifies operations, lowers costs, improves productivity and allows businesses to more easily collect the data necessary to glean essential actionable insights.
We Can Help
As a Fintech company specializing in business financing through our cloud-based platform, we can help companies spend smarter by helping them to install automated P2P systems. We connect funders, buyers and suppliers and facilitate many different types of financing options. We can show you how purchase to pay automation can provide complete visibility of all direct and indirect spending, help you understand how your enterprise’s money is being used and identify opportunities for using your money more strategically to support growth.