Maximising Value From P2P Implementations – Paper Available Now

If you're interested in P2P technology and particularly if you are looking at a first time or renewal systems project, you might like to take a look at "5 Ways to Maximize Value from Procure-to-Pay Implementations", available from the BravoSolution  / Jaggaer website.

The briefing paper looks at purchase-to-pay (P2P) implementations and key points to consider to maximise the value that can be obtained from such systems. Organisations implementing P2P for the first time and those looking to improve current tools share many of the same goals and issues, and both can see a range of benefits arising from appropriate and well-chosen technology.

The first section of the paper looks at where the value in P2P comes from – five areas, including “capturing and leveraging spend”, “fraud reduction” and “demand management” are included here.  Then it moves on to how best to release and achieve that value through P2P systems. Here is another extract - you can download the whole thing here, free on registration.

 

Achieving Maximum Value from P2P

Bearing in mind these sources of value, let’s now look at five key areas which require attention if a P2P technology implementation is going to deliver the benefits that are possible.

Get the process right (and configurability versus customisation)

Implementing P2P technology provides the opportunity to make sure the underlying transactional processes are fit for purpose. Putting the right controls in place for approvals for instance is vital to drive the benefits we have discussed. However, that needs to be balanced with the need to ensure processes are not overly time-consuming for budget holders and users, so that losses in efficiency do not wipe out those control gains.

The organisations that want to maximise their value may move to a “no PO (purchase order), no pay” policy, whereby suppliers will not get paid if their invoice does not match a previously approved purchase order. That solution won’t be appropriate to every organisation, but it will drive the greatest possible “control” benefits.

This value driver also takes us into questions about configuration or customisation in terms of the approach to the technology implementation. As the world moves increasingly to cloud-based SaaS (software as a service) products, most of the P2P solution providers work on the basis that their product is largely configurable rather than customisable. That makes it much easier and less resource-intensive to maintain for the user, and it can be delivered by the provider at a lower cost than other delivery methods. It can also be automatically updated on a regular basis, with those updates going quickly to all customers with minimal effort or disruption.

That approach means the user needs to follow the broad processes that are defined by the way the software is put together. There will be the opportunity to configure in a bespoke manner to reflect specific organisational practices (for example, in defining workflow around catalogues or approvals), but implementing new technology should also be seen as an opportunity to ensure that processes are standardised and broadly follow an accepted “ best practice” model.

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