Unraveling the P2P benchmark survey findings – The visibility & compliance picture

Zycus recently released the findings from the P2P benchmark study with responses from over 450 global procurement organizations. The study focused on painting a complete and realistic global landscape of where procurement organizations stand on a broad array of indirect spending and procure-to-pay (P2P) process performance metrics. In this blog, I would be highlighting the current state of procurement organization for 2 key performance indicators for indirect spending viz. Visibility & Compliance.

 

P2P Benchmark study

  • Visibility- Many companies still appear to be struggling with the transition from better transaction documentation to consistently generating actionable analytics for procurement. The study finds, for example, that only 45% of total indirect spend, on average, is currently being classified to a sufficient level of detail to enable spend analytics that procurement professionals would classify as ‘actionable’. Without continuous improvement in the accuracy and granularity of spend intelligence, organizations will be finding it increasingly difficult to achieve market and strategic sourcing wins over time.
  • Compliance– With our earlier Pulse of Procurement 2014 report pointing compliance to P2P processes as the top 3 pain points for procurement teams worldwide, it wasn’t surprising to see close to 50% of procurement organizations having only 40% of their indirect spend flowing through compliant P2P processes. Also, the weighted global average for indirect spend under preferred contract stands currently a 40% with just over half (55%) of procurement professionals estimating they have something less than 40% of addressable indirect spending under contract with preferred suppliers and only 21% reporting greater than 61% under preferred contract at this time.

Part 1 of the benchmark study provides you with more in depth analysis into how procurement teams worldwide stand in relation to influencing and controlling indirect spending and also looks at the P2P technology landscape.

Click on the download button below to access your complimentary copy for further insights into key performance indicators for indirect spending.

[symple_button color=”blue” url=”http://campaign.zycus.com/P2P-Benchmark-Study.html/WebBlogL87943″ title=”Visit Site” target=”blank” border_radius=””]Download Report[/symple_button]

 

Rohitkumar Nair

Rohit Kumar Nair is Associate Director Marketing at Zycus Inc., a provider of Source-to-Pay automation technology. With close to 10 years of experience covering multiple facets of marketing in the IT & Health Care domain, Rohit currently leads the product marketing initiatives for the Procure-to-Pay solution suite at Zycus Inc.

Share
Published by
Rohitkumar Nair

Recent Posts

Supplier Relationship Management: A Comprehensive Guide 2023

As businesses strive to remain competitive in times of economic uncertainty, there is an increased…

3 days ago

Put Incremental Improvements on Hold and Modernize Your Accounts Payable Process in 2023

Are you struggling with manual invoice processing? Does book closures during the end of month,…

4 days ago

5 Big Ideas for CPOs in Europe to Develop Procurement Strategies for 2023

Shortages in raw materials, energy, shipping, and labor required that CPOs performed at the top…

1 week ago

Paperless Accounts Payable Best Practices

Paperless accounts payable systems are modern solutions that can help enterprises streamline their accounts payable…

2 weeks ago

Top 4 Business Drivers for Investment in Procurement Transformation 2023

Procurement plays a critical role in the success of an organization and requires the right…

2 weeks ago

Streamline Your Procurement Processes with Integrated Source to Pay Platforms and Autonomous Quick Sourcing Technologies

Don’t we all love the buying experience on Amazon and other eCommerce websites which is…

3 weeks ago