Why You Should Care About P2P?
Procure-to-Pay
December 3, 2019
3 Benefits Of A Controlled Supply Chain
February 10, 2020Procure To Pay
Procure to Pay (P2P) is the internal process of managing requisitions, receivables, and goods and services. It derives its name from the sequence of procurement and financial processes involved, from the first step of procuring a good or service to the final steps of paying the invoice.
Many P2P systems mirror the following steps:
- Supply Chain
- Supply management – Managing supplier relationships for order processing and supplier connection
- Vendor selection – Researching and creating a preferred vendor list from which to make purchases
- Requisition – The internal process of requesting approval for order fulfillment
- Ordering
- Purchase order – A formal document used company-wide which outlines specific order quantities and ordering requirements from the specified vendor
- Receiving
- Inventory Management – The accounting and operations management of the inventory asset and the expense event
- Invoice Management
- Invoice reconciliation – Reviewing all of the receivables and cross-checking purchase orders with invoices to ensure all costs, quantities, and changes are as requested
- Payments Processing
- Accounts payable – The final critical step of the process is centered around processing the purchase order for payment, paying the invoice, and cataloging the amount into company accounting systems
Here’s an example of a “typical” Procure to Pay process for a Club:
The kitchen staff determines there's a need for more chicken cutlets. Your in-house procurement specialist researches vendors and produces a Request for Quote (RFQ). Once the RFQ is received, the specialist will select the preferred vendor and begin negotiations on the product based on price or quantity. Once everything is finalized, the vendor sends the product and invoice. The specialist then passes the invoice along to the finance department which then processes and pays the vendor for the goods or services.
Why CedarCreek?
A manual P2P process works great until you have hundreds of vendors and thousands of invoices across the myriad departments within your organization. These typical steps also lack overall contract controls, compliance management, business intelligence, inventory management, and vendor performance stats.
CedarCreek’s procure to pay system is uniquely designed to help the club Industry to maximize spend coverage. The platform and technology connect customers with their suppliers to improve efficiency, increase transparency, provide accountability, strengthen financial controls, resulting in significant business process improvements and cost savings.
If you are looking for a more smooth & efficient P2P process then call us today at 561.946.2770 or email us at info@cedarcreeksystems.com to see how we can help your club be the best it can be.
