Purchase to Pay

Enabling better control over corporate spending

Why is the Purchase to Pay Process important?

Based on a survey of more than 1,200 senior executives across all major global regions and industries performed by Deloitte, it was found that cost-reduction remains a global imperative as it continues to be a standard business practice in all regions, with the large majority of global survey respondents (71 percent) planning to undertake cost-reduction initiatives over the next 24 months.


Purchase to Pay is the end-to-end process that addresses from sourcing vendors, receiving goods/services, processing vendor invoices, and paying for them.  


As a critical operation of your business, it makes sense to negotiate better prices, lengthen the time needed to pay for vendor invoices, and take advantage of the discount for prompt payments to reduce overall supply chain costs, free up cash, improve operational performance, and make improved financial decisions. 


All steps included in the Purchase to Pay process need to be understood: 

Why is the Purchase to Pay Process important?
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Global experience in the underlying processes that support Purchase to Pay process

With professional experience working in over 30 countries, we bring best practices, metrics, and technology trends aimed at optimizing all the Purchase to Pay activities.

Value to our Clients

Whether through continued improvement or transformation of the Purchase to Pay process, better pricing negotiations and reducing discretionary expenses, a company can expect to increase free cash flow between 10% to 15% and improve the following metrics:


Procurement Planning and Order Processing

 

  • Percentage of Structured Spend (Catalog & Punchout) 

  • Percentage of On-Contract Spend 

  • Percentage of Non-Tail Suppliers (suppliers sending 80% of the organization’s invoice)

  • Percentage of Pre-Approved Spend 

  • Percentage of Electronic PO Processing

  • Req-to-Order Cycle Time

Order Receipt

  • Percentage of Electronic Invoice Processing 

  • Invoice Approval Cycle Time 

  • Percentage of First-Time Match Rate


Payment

 

  • Expense Approval Cycle Time 

  • Percentage of Expense Report Lines Within Policy 

  • Percentage of Manual Expense Reports Review

Our Approach?

ECM Consulting Group’s approach includes assessing and improving the key performance indicators of the Purchase to Pay process. They have proven to enable better performance at many corporations. The approach outlined below is intended to be flexible to accommodate the unique challenges of each corporation.

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Regions covered by our Firm

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To discuss how this process can help improve your cash position

Managing cash during uncertain times is critical. This free Ebook provides insights for you to consider.

ECM Consulting Group | United States