By streamlining the procurement process, you can free up time and resources for tendering existing contracts, managing supplier relationships and growing the business.
The Procure-to-Pay / Purchase-to-pay (P2P) process includes the management of purchase agreements, the receipt of goods or services, the processing of invoices and the management of trade payables. Weaknesses in the procurement process can lead to cost inefficiencies and customer dissatisfaction.
Generally, the procurement process consists of the following steps:
- Offer management
- Purchase agreement management
- Purchase order
- Receipt of a product or service
- Invoice reconciliation
- Purchase invoice processing and payment
The procure-to-pay process is often considered to be one of the most costly processes in a company’s financial management. Creating a clear sourcing strategy and streamlining the sourcing process saves the organization time and helps focus resources on growing the business.
Sufficient time must also be left for those responsible for procurement to assess the total cost of procurement and the performance of suppliers (volumes, price development, security of supply, quality and payment terms).
There is a need to improve the procurement process if:
- There is not enough time left for tendering and contract negotiations
- Comparing purchase prices is problematic or cumbersome
- Products and services are always sourced from familiar suppliers
- Procurement systems do not support systematic procurement and production or effective monitoring and controls.
The procurement strategy and operating instructions help to harmonize the organization’s practices and minimize risk factors. By automating the procurement process, time-consuming routine tasks are reduced and the procurement team has more time to follow procurement prices, supplier tenders, contract negotiations and agree on discounts.
Greenstep at your service
At Greenstep, we help your company identify problem areas in the procurement process and automate the various stages of the process. We can also be involved in creating a company’s sourcing strategy or drafting a sourcing manual to clarify practices and operating models. If necessary, we help the company to choose a suitable tool to manage the procurement process.
While your business is still on the path to growth or stable at its current size, we help you find the elements in your purchasing and invoicing process that are relevant to your business needs: e.g. often “small is the most beautiful and effective way to go”.
Contact us, let's streamline your processes together