Supplier integration is a critical component of any P2P rollout. Spend Matters recommends that organizations consider supplier capabilities as early in the deployment process as possible.
There are several ways to integrate suppliers – via cXML, EDI, a supplier portal or even email. In our experience, the most efficient approach is to let suppliers receive the PO, flip it into an invoice and send this back to the P2P solution (with either a 2- or 3-way match) to approve. Finally, information is relayed to the ERP with a notification that payment can be made, with invoice payment details going back to the P2P solution for penultimate reporting and analytics.
Here’s one variation on how it can look:
Most important of all, in any P2P rollout, it is essential to remember that suppliers are clearly a critical element supporting any integration strategy. If suppliers are not easily enabled and well integrated into the P2P solution, it will be difficult to realize an anticipated ROI. In all cases, procurement must drive the integration effort in considering supplier maturity and capabilities early in the process.
Stay tuned as we continue highlight many of the key observations and recommendations from Spend Matters white paper, Cloud P2P Deployment: A How-To Guide to SAP and ERP Integration with eProcurement and Beyond (free download). Authored by Xavier Olivera, director of P2P research, Jason Busch, founder and managing director, and Thomas Kase, vice president of research, this is the paper that will allow you to take charge of a P2P rollout regardless of whether your internal organization, a vendor or a systems implementation firm is doing the work.