Is your Procure to Pay Process outdated?
Five tell-tale signs it’s time to upgrade your Procure to Pay process
By Michael Ryan, Partner Alliance Account Executive, Tradeshift
Why Procurement and AP feel the pressure when companies grow
No one invests in procure to pay so that they can stand still.
Integrating Procurement and Accounts payable makes businesses faster, more agile, and more intelligent; these capabilities should support the broader strategic goal of building bigger, better, and more valuable relationships with suppliers.
Therein lies the problem.
As businesses evolve and grow, so do the demands on their procure to pay processes.
Processes that worked well a year ago may begin to buckle under the “strain of success.”
Business growth brings fresh challenges, including higher volumes, greater complexity, and new responsibilities.
Ignoring these signs of strain can lead to inefficiencies, compliance issues, and missed opportunities for savings and improvement.
Here are five tell-tale signs that it’s time to review and upgrade your procure to pay process, along with key considerations to keep in mind as you seek out a solution.
1. Multiple systems and lack of integration
When teams are forced to toggle between different systems to manage procurement, invoicing, and payments, efficiency will inevitably fall while the opportunity for errors increases.
A modern Procure to Pay solution should offer seamless integration with existing systems—be it ERP or other procurement tools—to create a cohesive platform.
This integration capability ensures data consistency and provides a streamlined workflow, which is crucial for gaining accurate insights and making informed decisions.
2. Non-compliance and lack of transparency
If your procure to pay process helps to improve operational processes but doesn’t provide business intelligence and transparency, then it’s falling far short of what modern platforms can support.
Businesses should be able to know and control everything related to procurement, from identifying and preventing maverick spending to ensuring compliance with ever-changing regulations in new and existing markets where they do business.
If you’re noticing more off-contract spending or if procurement policies are more often breached than adhered to, it’s time to consider a system that enhances transparency.
A robust Procure to Pay solution enforces policy compliance and offers comprehensive visibility into all transactions, ensuring that every dollar spent is optimized and accounted for.
3. Manual processes and high error rates
If you want to know whether you’re getting the most out of your Procure to Pay platform, go to the coalface and ask the staff in Procurement and AP.
If workers are buried in paperwork and manual data entry, if there’s a high reliance on manual processes, it’s the clearest sign that the system isn’t working.
One of the most valuable benefits of true Procure to Pay is that it eliminates the daily drudgery of processing transactions manually.
This not only reduces the risk of errors but also diverts your staff from higher-value activities.
Automating routine tasks such as purchase order creation, invoice processing, and payment execution can significantly improve operational efficiency, enabling teams to focus on strategic tasks like supplier relationship management and contract negotiation.
4. Inefficient use of time and resource
If processing a single purchase order takes forever, it’s a sign that your P2P process may be outdated.
Modern Procure to Pay systems like Tradeshift streamline operations and reduce the time and resources needed to complete procurement tasks.
Further, if you don’t have insight into how long these processes are taking and how much time you’re saving (or not), that further indicates that your procure to pay requires a refresh.
Modern platforms provide tools that measure and track performance against industry benchmarks and best practices, helping you understand where delays occur and where improvements can be made.
5. Stress and employee frustration
When systems are cumbersome, and tasks are redundant, employee satisfaction can plummet.
An overwhelmed staff is often a sign that your processes are not as smooth as they could be.
Investing in a user-friendly, efficient Procure to Pay system can alleviate stress and increase job satisfaction by removing frustrating barriers to effective work.
Upgrading your Procure to Pay process: what to consider
Think about solutions that not only solve today’s problems but are scalable enough to accommodate future growth.
Above all, look for platforms that:
- Integrate seamlessly with your existing software infrastructure.
- Use the very latest artificial intelligence (AI) across the entire P2P process
- Provide real-time analytics and reporting to enhance decision-making.
- Offer flexibility and customization to meet your evolving business needs.
- Ensure ease of use to drive adoption and minimize training requirements.
- Prioritise data security and compliance with tax and e-invoicing regulations in every jurisdiction.
Simplify Procure to Pay with Tradeshift
Tradeshift Procure to Pay is built for mid-market organisations facing the challenges of growth.
Rising transaction volumes and complex processes demand smarter, more efficient control over spend.
Tradeshift understands these challenges and offers a flexible, scalable, and modular solution to grow with your business.
Our platform simplifies the Procure to Pay process, enhances visibility, and drives compliance across all procurement activities.
Embedded AI automates routine tasks in a controlled environment, lowering costs and delivering ROI faster.
Tradeshift’s app-based platform and modular pricing mean you only pay for what you need. It is a flexible solution that grows with you, giving you control without complexity
Build the solution that’s right for you and scale on your terms. Add features as needed without paying for unused capabilities.
Take the first step towards operational excellence by contacting Tradeshift today to learn how our procure to pay solutions can tailor-fit your business needs, letting you focus on what you do best—innovating and expanding your business.
