Nextgen optimization: automation within P2P
The ongoing evolution of procurement processes will be markedly influenced by technology, placing heightened emphasis on automation and machine learning, specifically AI and robotic process automation.
This paradigm shift of technology enablement will lead to more transparency, streamlined design and overall efficiency within the procurement function. There are several automation tools within the market today, and a proper supplier selection assessment is required to determine which tool aligns with the specific business’s needs.
Below are a sample of potential areas to leverage automation across the eight key processes throughout the P2P end-to-end lifecycle:
Strategic sourcing
Measure performance by leveraging data analytic tools to benchmark the performance of suppliers and to identify the preferred suppliers for your organization.
Contract management
Leverage AI to recognize and extract key data points or contract clauses to support potential regulatory requirements and identify potential revenue leakage.
Manage suppliers
To manage suppliers, leverage a supplier portal to send mass invitations, manage master supplier data and promote data cleanliness.
Manage requisitions
Leverage a procurement tool that allows for requisition approval workflow and that automates identified requisition scenarios, resulting in governance around compliance requirements.
Purchase materials and services
Leverage a procurement tool that enables an efficient purchase order approval workflow and that automates the purchase order creation for identified scenarios. These tools can pre-populate data points for a streamlined purchasing process.
Receive materials and services
Manage discrepancies, including exchanges, returns and replacements by leveraging a procurement tool to track all open purchase orders.
Process accounts payable
Automation can be used to upload data into procurement systems and perform optical character recognition for extracting key invoice data to automate invoice processing.
Process payments
Leverage an ERP system that can automate batch payment runs on a streamlined schedule for payments that meet specific criteria.
