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Transforming Procure To Pay
Transforming Procure To Pay
Transforming
Procure-to-Pay:
Align Finance and Procurement to boost
efficiency and improve the bottom line
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45%
6%
37%
Western
Europe 9%
3 %
North
America
Asia
Eastern
Europe
Middle East
and Africa
Less than
$1 billion
More than
$10 billion
19%
41% 5 %
$1 billion -
$2 billion
22%
13% $2 billion -
$5 billion
$5 billion -
$10 billion
23% 22%
21%
34%
500,000 – 100,000 –
1 million 500,000
54%
18% 20%
3% 5%
Not aligned Rarely aligned Somewhat Mostly Very aligned
there is no we work aligned aligned we share same
collaboration separately, but we collaborate we share organizational
between Finance collaborate on certain most goals goals, KPIs and
and Procurement when needed projects and most KPIs leadership
While 54% of respondents say they are somewhat aligned, 21% are not
well aligned and only 25% were mostly or very aligned.
Non PO
33%
67%
PO
% of PO invoices
24%
16 % 17% 17%
13%
13%
0%
Less than 50-59% 60-69% 70-79% 80-89% 90-99% 100%
50%
61%of companies that are well 34%of companies that are not
aligned (‘mostly aligned’ or ‘very well aligned ('rarely aligned' or
aligned’) have more than 80% of 'not aligned') have more than
invoice under PO. 80% of invoice under PO.
11% 8%
Our invoice Improving We want to We are looking to
processing is invoice improve, improve our invoice
high quality processing but don’t processing, and
and we aren’t isn’ta priority yet have have budget
looking to right now budget to do so
change it
e-procurement
58%
30%
e-invoicing 48%
38%
Contract
management tools
46%
23%
An end-to-end 30%
P2P solution
49%
e-procurement and e-invoicing are the most popular tools used currently,
and the biggest area of growth is in end-to-end P2P solutions.
42%
34%
15%
9%
45% of companies that are well 25% of those that are not well
aligned ('mostly aligned' or 'very aligned ('rarely aligned' or 'not
aligned') have end-to-end aligned') have end-to-end
process owners. process owners.
Summary
• Finance and Procurement teams are showing insufficient alignment:
only 20% of respondents are “mostly aligned” on goals and KPIs
and a mere 5% actually share goals and KPIs. Only 34% of
respondents have end-to-end global process owners.
• Handling invoice exceptions is the top pain point in the P2P process
for 80% of respondents, and over half struggle with high volumes of
internal and supplier inquiries.
• Only 41% of respondents have more than 80% of their invoices
under PO; but that percentage goes up to 61% when considering
respondents in the well aligned category.
• The top priority for respondents is to standardize and automate the
overall P2P process. 80% of respondents state they are actively
looking at improving their invoicing process.
Based on our research, we identified three ways you can unlock P2P
efficiency and drive alignment between finance and procurement.
© sharedserviceslink.com Ltd and SAP Ariba 2016. No copy or visual can be used in part, as a phrase or in whole without the written permission of
sharedserviceslink.com Ltd. The concept of this product belongs to sharedserviceslink.com Ltd and cannot be re-created by a third party for the
purpose of an event, article, report or any other written product, without written consent made available by sharedserviceslink.com Ltd.