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Procure-to-pay (P2P)
Posted on Apr 23, 2022 |
Posted in News |
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Procure-to-pay (P2P) process is a difficult one to manage always. But the result is always rewarding. The intra- and interdepartmental association in dealing with the right vendor, deal negotiations, expenditure reduction with the help of inexpensive, flexible, non-archaic methods strives to ease the P2P process.
A P2P process can be customized for the businesses but here's how the basic outline of a P2P process would look like:
- Need identification With the help of associated stakeholders, a valid need must be identified so that specifications for online industrial goods and services, terms of reference(TOR), or statements of work (SOW) can be finalized.
- Requisition creation A requester submits a formal purchase request for any kind of procurement, be it standard purchases, subcontracts or consignments.
- Purchase requisition approval After a thorough review by the approvers based on the needs of the business and allocated budget, purchase form requisition is either accepted or rejected.
- PO/Spot buy POs are generated from approved purchase requisitions. But in the case of unmanaged category buys, on-time purchases, and low-value commodities, a spot buy is a feasible option.
- PO approval A PO undergoes a legitimate approval process and is then dispatched to vendors for approval or negotiation.
- Goods Receipt After delivery of goods/services, the buyer does a thorough end-to-end inspection to ensure if they comply with contract terms.
- Supplier Performance Evaluation report of goods/services is fed in the information system for future reference.
- Invoice approval and vendor payment Once a PO, vendor invoice, and goods receipt are matched, the invoice is approved and directed to the finance team to make payments to the vendor.
Searching for an efficient tool to manage your procurement process? Then IndustryKart is a top-notch P2P solution provider to rev procurement automation. Being a premium leader, we aid businesses to gain a leg over their competitors by helping them make the entire production resources chain swift, safe, and cost-effective.