In the previous blogs we discussed various aspects of P2P process efficiency, from the key measures to steps for lagging performers to the strategies adopted by top performers. (Click here to access intro, part 1, part 2 , part 3 and part 4 of the series)
In this last blog, let’s talk about;
What Innovations Have the Potential to Drive the Next Wave of P2P Efficiencies?
The underlying driver for P2P adoption is compliance, both Compliant Buying – from approved vendors at negotiated prices – and a Compliant Process – correctly categorized, coded and approved purchases that flow through as “touchless”, paperless orders.
The first goal – Compliant Buying – is only partially achieved by enabling users to search from approved vendor catalogs at negotiated prices. But many P2P systems have a compliance “blind spot” when users need to buy something that is not on the catalog– either a non-“catalogable” service such as contingent labor, print, maintenance, or professional services, or an unplanned spot buy that is not on the catalog. In most cases, these non-catalog items result in free-form requisitions that are prone to be misclassified and therefore routed through the wrong category workflow approval process and coded to the wrong General Ledger Account, and because they do not automatically suggest an approved vendor, could result in off-contract or Maverick Buying.
In such cases, “Guided Buying” as a P2P innovation can help close the compliance blind spot for off-catalog requisitions, which account for 1/3 or more of all requisitions in a typical P2P deployment. Think of it as a GPS for P2P – a “Guided Procurement System,” that is.
Guided Buying has the potential to drive towards a new benchmark for P2P process efficiency – enabling a more structured yet easy-to-use self-service process that comes closer to the theoretical standard of a true “touchless” P2P process on all transactions, catalog and non-catalog – by increasing order accuracy upfront, to reduce the need for time consuming and costly re-work on the back-end.
For further reading, click the download button to access the whitepaper Touchless Long Tail Spend – The New Benchmark for World Class P2P Process Efficiency[symple_button color=”blue” url=”http://campaign.zycus.com/Touchless-Long-Tail-Spend/WebBlogL87943″ title=”Visit Site” target=”blank” border_radius=””]Download Whitepaper[/symple_button]