CORONAVIRUS RESPONSE: Procure-to-pay (P2P) keeps the cash flowing during the crisis [PRO]

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In this installment of our “Coronavirus Response” series, Spend Matters will focus on procure-to-pay solutions and how they can help manage cash flow during a crisis.

The mission of this PRO series is to examine categories of relevant solutions (and example providers) that professionals in procurement, finance and supply chain organizations should investigate to reduce, and even mitigate, coronavirus supply risk. And even if the solutions are only addressing a subset of the issues, the ability to respond intelligently in the short term can also help set organizations up for the future when sanity returns to the world.

This article addresses the fourth category of the seven we currently have outlined:

1. Supply risk management solutions that include supply chain risk, CSR risk, supplier financial risk, etc.
2. Sourcing and commodity management, including advanced sourcing, direct sourcing, automated supplier discovery, and commodity management to help dynamically plan and source.
3. Advanced procurement analytics to enable direct procurement and/or to perform “spend planning” when demand drops out or spikes. (Its profile for this series is here.)
4. P2P that emphasizes working capital, dynamic discounting, payment control and related finance priorities to help inject cash into the P2P process — especially for many cash-starved suppliers.
5. Fraud, P2P and vendor management safeguards when new suppliers need to be set up quickly, and also when lowlife fraudsters try to use the pandemic as a way to steal money and IP.
6. Providers with deep contract analytics that can analyze a contract portfolio for affected contracts from suppliers (and customers) for not just force majeure clauses, but other related clauses that tie to the multiple risks popping up at once in the pandemic.
7. Contingent workforce and services solutions that are able to, at a minimum, help rapidly ramp up on-demand workers to deal with massive resource shortfalls. We are looking at four categories of solutions for sourcing remote/online work; solutions for sourcing and managing contract workers at geo-specific capabilities; solutions to “direct source” and manage contract workers; solutions for data management and analytics.

Owing to the magnitude of the crisis, Spend Matters recently made the series introduction available for free to all readers. PRO subscribers can see our follow-up pieces that profile the other categories and their solutions in that market. We will include a lot of information on each category PRO brief that readers can see without hitting a paywall, but since we also draw heavily from our existing deep-dive analysis of the providers from our SolutionMap database, some information will be available only to our PRO subscribers.

Today, we begin our coverage of procure-to-pay (P2P) solutions from three of the P2P suite players with particular strengths in emphasizing working capital, dynamic discounting, payment control and related finance priorities to help inject cash into the supply base (especially harder hit suppliers in need of cash) via the P2P process.

They are Basware, Tradeshift and Coupa.

These initial three vendors, while each unique in the P2P/financing space, all have deep capabilities in payment automation and financing programs — like intermediate trade financing and not just basic non-intermediated early pay discount execution. If other practitioners, providers or consultants would like to contribute to coverage in this category, please let us know or fill out this survey.

If your organization doesn't have a P2P platform with payment and financing capabilities, one of these three platforms could be the most fit-for-purpose, off-the-shelf solution to help you preserve, deploy or have access to cash through the COVID-19 crisis, but obviously longer-term too.

Each category-specific PRO piece in this series will have three sections:

1. Problems and Use Cases. We’ll highlight the problems in force (which will vary through different phases of the crisis) and the various scenarios where solutions can provide deeper insights, intelligence and scalable workflows.
2. Solution Rationale and Value. We’ll outline how various solutions can help solve the problems and the specific questions that they’ll help answer.
3. Example Providers. We’ll highlight the solution providers that can support the problems and deliver some value.

Some providers are offering COVID-specific programs and “freemium” commercial offers, and we’ll note those whenever we update this piece. We’ll also start the series with providers that we already have deep knowledge on, but we’ve been seeking information from other vendors too.

OK, let's dive into the power of P2P solutions.

Through April 2020, a special PRO Expert Survival Pack is available to procurement practitioners only* at up to 50% off — Learn more

Scanmarket CEO: Coronavirus crisis is forcing companies to identify an array of business risks

Scanmarket CEO Betina Nygaard

The coronavirus outbreak has made online work more vital than ever, and with all of the digital transformation and increased use of procurement technology, vendors have more visibility into  what’s actually going on with businesses, which even during this crisis must remain focused on serving clients while their own personnel work from home — sometimes in cities and countries under lockdowns.

To get the pulse of what’s happening, we got in touch with e-sourcing specialists Scanmarket, a company that’s facing both of those pressures. The cloud-based provider operates globally but has its core group in Denmark, one of the first countries to institute a nationwide lockdown.

In any crisis, businesses’ timelines for answers speed up and priorities change. So we talked with Scanmarket CEO Betina Nygaard to get some insight on how the crisis is unfolding and how businesses are addressing all of the risk they’re facing.