Top 10 Procure-to-Pay Trends You Can’t Ignore: 2021 and Beyond

2020 threw businesses into a tailspin as we all tried to negotiate the abnormal conditions of the Covid-19 pandemic. But as we get on the road to recovery, it’s time to learn from  our lessons from the past to become more proactive as we move into the future. 

So, what does the future hold for finance and procurement departments? What top trends will have the most impact? And how can organisations establish a plan for success moving forward into 2021 in beyond?

In our new e-book - Top 10 Procure-to-Pay Trends You Can’t Ignore: 2021 and Beyond - we highlight the top 10 procure-to-pay (P2P) trends business professionals should pay close attention to in 2021 and in the next years to come. Here’s a sneak preview of the trends and how they’ll impact organisations worldwide.

1. Digital Strategy

Over the past decade, digital transformation has become a key element in organisations’ business plans - no longer just a nice to have feature. The pandemic further brought to light all the inefficiencies and costs inherent to manual and paper-based processes and has rapidly accelerated the pace of automation.

Digital transformation may seem like a buzzword that’s used to reflect one thing and one thing only: technology. But, there’s a lot more to it. It’s a mode of thinking, not just a process replacement initiative, and it’s here to stay. Now, more than ever, it is important to have a short term as well as long term automation roadmap to future proof your operations.

2. Data and Analytics

While a hot topic for some time now, the need for data and analytics has increased exponentially as CFOs and CPOs are trying to drive cost control and containment while at the same time minimise business disruptions.

We are seeing organisations using data in a more advanced, predictive way going forward – to not only drill-down but to alert-up. Using data to establish actionable insights empowers organisations to not just look at the current state of operations but make proactive and informed plans for the future.

3. Risk Management

Supplier management is no longer about negotiating the cheapest possible price with your suppliers. There’s too much risk associated with thinking merely in terms of dollar signs when it comes to suppliers.

Managing supplier risk can no longer be an afterthought, it has to be a critical component of your supplier management strategy and process. The conversation with suppliers shouldn’t just circulate around “how much?” It should entail in-depth dialog and continuous research into your suppliers’ business practices, especially as it relates to business continuity.

4. Artificial Intelligence and Machine Learning

Smarter processes backed by data and powered by automation are the future for P2P operations. When data quality improves, automation becomes all the more effective.

Intelligent technologies backed by AI (artificial intelligence) and ML (machine learning) handle as much as possible behind the scenes without human interference. These technologies learn as they go and eventually gather enough data to perform the same job in a completely different but more efficient way.

5. Leadership

The pandemic made it clear that many organisations had not planned for a crisis of this magnitude. Employees in procurement and finance departments were unprepared for the immediate need to work remotely, severely impacting operations.

Remote working, to some extent, will be the new normal going into the future. Further, as the world moves towards more automation and digitisation, employees are expected to fundamentally change as traditional, clear cut job roles are being forced to adapt. In order to prepare for this, it’s vital to equip your workforce with the proper skills and talents needed to deal with these changes and provide them with the platforms that enable them to efficiently perform their jobs.