Hannu Kilpeläinen
Product Marketing Manager
 

Maximize e-procurement benefits by looking at the entire purchase-to-pay process

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Procurement best practices emphasize the importance of understanding the hopes, fears and motivations of your stakeholders before you start your e-procurement project. As the program begins to gain momentum, it’s time to go deeper. No process is an island. In today’s businesses, different departments’ processes constantly intertwine. Changes to one area inevitably effect other areas. That’s why it is important that you spend time educating yourself and your team about the inner workings and goals of all the functions involved across the purchase-to-pay process.

A significant percentage of the value you can achieve comes from optimizing the entire purchase-to-pay process. For this, you can leverage the help of an external expert who can analyze your accounts payable and procurement processes, and help you leverage procurement best-practices.

“Our department heads used to have to provide authorization twice: once to authorize a purchase, and later to authorize the invoice after delivery was made. That’s twice as much work. What we wanted was a solution that lets department heads deal with purchases just once. With our purchasing system from Basware, the employee creates a purchase requisition and gets it approved by their department head. By the time the invoice arrives, it’s already approved and can be sent for payment automatically – assuming the deliverable is as agreed.” – Rune Pind Nielsen, Accounts Payable Manager, Atea

Clear trend towards collaboration

In their latest survey, Purchase to Pay Today (APN) reports that 63% of respondents from companies interviewed answered that their Accounts Payable and Procurement departments worked closely together, and 19% have the ambition to become one unified Purchase-to-Pay department. This is a clear indication of the importance organizations are placing on a more collaborative way of working.

In their latest report, the Institute of Finance and Management (IOFM) reported that the level of coordination between accounts payable and procurement will increase as finance executives dismantle the silos separating finance, procurement and treasury – and adopt automation solutions, e-invoicing and open commerce networks to work smarter.

In a recent survey, Purchase to Pay Today (APN) reports that 63% of respondents from companies interviewed answered that their Accounts Payable and Procurement departments worked closely together, and 19% aim to become one unified Purchase-to-Pay department. This is a clear indication of the importance organizations are placing on a more collaborative way of working.

“In the past, we had a lot of unproductive discussions between the accounts payable and the procurement teams. They now work together much more closely and have a better understanding of each other’s processes. The whole atmosphere improved.” - Manager, finance at a large manufacturing company

Want to learn more about how you can ensure the success of your e-procurement project?

Read our complementary ‘how-to’ guide for making e-procurement work for your business: 7 Secrets for Successful e-Procurement >> 

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