Mastering Indirect Spend Five keys to SuccessMarch 31, 2017
Check your Procure to Pay Health!March 31, 2017
Disruptive technology innovations, market volatility, and increased competition are creating major challenges for purchase-to-pay groups today. To respond to these challenges, purchase-to-pay organizations must balance the traditional focus on cost with a new emphasis on agility. Top performers in our research database have responded by mastering three core capabilities: meeting the needs of stakeholders (as opposed to just operating at the lowest possible cost); making decisions based on data, not just intuition or history; and leveraging technology to eliminate paper and manual work wherever possible.
Although not historically considered a strategic function, purchase-to-pay has a critical role in overall business agility today. Top performers treat purchase-to-pay
as an end-to-end process and consider it essential to effective sourcing and supplier management practices.
Key takeaways from the report:
• Top performers in purchase-to-pay use e-invoices at a rate that is 3.7 times higher than the peer group.
• Top performers are two times more likely to resolve accounts payable inquiries through self-service.
• Top performers order 43% of indirect line items through e-catalog versus only 20% of peers.