Accounts Payable—It is increasingly important for organizations to link procurement and accounts payable (AP). This combination of procurement and AP and the recognized complimentary service they provide each other is a feature of a true Procure-to-Pay solution.
Payments—The payment component is becoming the new add-on and soon, very likely, the new requirement for procure-to-pay. Automating payments allows for better cash management; the introduction of a Payment Terms program; and ensures good supplier relationships with timely payments.
Procurement Policies—Automation alone is not very effective without the support of corporate management. Organizations that utilize a “No PO, No Pay” rule in conjunction with the use of the procure-to-pay solution witnessed much higher success rates.
Implement Procure to Pay for achieved success
A Procure-to-Pay solution will affect many people of all types in an organization including users, managers and corporate personnel. In order to be successful, the benefits must be understood by all involved and the process must be seen as a more efficient and effective means of accomplishing set goals. A thorough understanding of how the procure-to-pay process is utilized within the organization—in addition to the components mentioned above—is essential to a company’s success.