![]() This streamlines the process to ensure accuracy and create cost and time efficiencies. What P2P actually refers to is an automated system that integrates the procurement process with accounts payable. Simply put, P2P is a process whereby a requisition is created, an order is placed and, once received, payment is made based on the invoice by the supplier. Automating the entire P2P process will open doors to a plethora of benefits like strengthened compliance and control, transparency in the procurement cycle, and reduced margin for human error. The P2P process flow encompasses several different activities like need identification, sourcing of goods, requisition, issuing purchase orders, receiving orders and supplier invoices, account payables, and reporting. If executed well, the P2P process can run smoothly guaranteeing optimized efficiencies. The P2P cycle involves a few sequential stages like identification of needs, invoice approvals, and payments to vendors. The P2P process is a part of the larger procurement management process. In simple terms, the P2P cycle involves integrating purchasing and accounts payable systems to create greater efficiencies. The Procure-to-Pay (P2P) process is the coordinated and integrated action taken to fulfill the requirement for goods or services in a timely manner at a reasonable price. Choosing the right procure-to-pay (P2P) software is the way to go. Hence, to survive competition, the earlier we adopt digital procurement ways, the better. Even after knowing this, many companies still resort to the traditional ways of procuring materials. Additionally, outdated procurement methods are inefficient, expensive, and inflexible. The consequences of using a traditional procurement method are harsh and can drastically change the profit path of your organization. What makes the bottom line profitable are the strategic choices made by the company which aligns with the objectives and goals. An organization’s bottom line depends on the strategic choices made by the company with long-term goals in mind.
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