Balancing Automation with Practical Needs: Why Many Organisations Struggle to Maximise Their P2P Investment

Procurement teams everywhere face growing challenges daily. Supply chain hiccups, tighter budgets, and digital transformation pressure create headaches for even the most seasoned professionals. When things go wrong, it means lost savings opportunities, delayed payments, and frustrated suppliers on the phone.

The rising interest in procure to pay solutions makes perfect sense given these challenges. These comprehensive systems bridge purchasing and accounts payable functions, creating a smoother process from initial request to final payment. Yet many available options fall short of expectations, leaving teams stuck with costly software that complicates rather than simplifies workflows.

What Exactly Is the Procure-to-Pay Process?

The procure-to-pay cycle encompasses the complete transaction journey. It begins when an employee needs something and concludes when a supplier receives payment. Between these points lie numerous steps: approvals, purchase order creation, goods receipt, invoice matching, and payment processing.

Without proper systems, this process devolves into chaotic email chains, misplaced documents, and overlooked discount opportunities. Manual data entry breeds errors. Approvals languish in forgotten inboxes. Invoices mysteriously disappear. Suppliers ring constantly about payment status.

Does this sound like a typical day at the office?

The Hidden Costs of Disorganised P2P Processes

Perhaps teams have adapted to this chaos. They’ve developed workarounds and extra checking steps. The system functions… barely. But at tremendous expense.

Consider these overlooked costs:

Late payment penalties and forfeited early payment discounts

Staff hours wasted on repetitive data entry and fixing mistakes

Duplicate payments sometimes undetected for weeks

Rush purchases at premium prices when normal channels fail

Strained supplier relationships from consistently tardy payments

And possibly most costly: all the strategic initiatives the team could tackle instead of constantly putting out fires.

Essential Components of Modern P2P Solutions

Today’s leading procure-to-pay platforms typically offer:

User-friendly requisitioning making it straightforward for staff to request items through intuitive catalogues

Flexible approval workflows directing requests to appropriate people based on value, department, or category

Automated PO generation delivering orders to suppliers via their preferred methods

Receiving functionality for tracking delivered goods and services

Smart invoice capture extracting data from both paper and electronic invoices

Three-way matching verifying invoices against POs and receipts

Diverse payment options including virtual cards, ACH and traditional methods

Supplier portals where vendors submit invoices and monitor payment progress

Better systems also provide analytics dashboards highlighting spending patterns and savings possibilities.

Why P2P Implementations Often Disappoint

Let’s be frank - procurement software success stories are mixed at best. Some organisations spend lakhs only to discover employees still relying on spreadsheets and emails.

Typical implementation failures stem from:

Selecting overly complicated systems average users avoid

Neglecting to secure buy-in across departments

Poor supplier onboarding and inadequate training

Attempting to force outdated processes into new software

Weak integration with existing financial systems

This reality leaves procurement managers in a difficult position. Traditional methods clearly underperform, yet the possibility of implementation failure seems equally daunting.

Finding Suitable Solutions for Specific Needs

How does one select a solution that truly delivers? Start internally. Map existing processes - both official procedures and unofficial workarounds. Discuss pain points with stakeholders. Important questions include:

What transaction volume does the organisation handle?

Which accounting system must integrate with the P2P solution?

Are mobile capabilities needed for travelling approvers?

What percentage of suppliers can handle electronic documentation?

Which compliance requirements apply to the organisation?

Compare these requirements against available options. Remember that simpler systems with high adoption rates typically outperform feature-rich platforms nobody uses.

Beyond Technology: Managing Change

People naturally resist disruption to established routines. Procurement teams have settled practices. Suppliers have preferred invoice submission methods. Middle managers worry new systems might expose departmental inefficiencies.

Technology alone cannot overcome these barriers. Effective change management addressing concerns, demonstrating clear benefits, and providing thorough training proves essential.

Successful implementations typically begin modestly - perhaps with one department or supplier category - expanding after demonstrating value.

Defining Success Through Measurement

How will organisations recognise if their procure-to-pay solution delivers value? Key metrics include:

Average days from requisition to purchase order

Percentage of straight-through processed invoices requiring no manual intervention

Capture rate for early payment discounts

Supplier satisfaction measurements

Cost per processed transaction

These indicators help justify investment while identifying areas needing improvement.

Avoiding Common Implementation Pitfalls

Even with careful planning, P2P implementations can derail quickly. Watch for warning signs like stakeholders skipping planning meetings, technical teams raising integration concerns late in the process, or suppliers expressing confusion about new requirements. Address these issues immediately rather than hoping they’ll resolve themselves.

The most dangerous approach? Assuming technology will fix broken processes. No software, regardless of sophistication, can overcome fundamental workflow problems. Fix the underlying process issues first, then automate.

Moving Forward Strategically

Procurement excellence develops gradually. It requires the right combination of people, processes, and technology working harmoniously. Modern procure-to-pay solutions offer significant potential benefits, but realising that potential demands thoughtful planning and execution.

For teams still struggling with manual processes, even small automation steps can yield remarkable improvements. Success starts with understanding organisational needs and selecting solutions addressing specific challenges rather than chasing trendy features.

Tomorrow belongs to procurement teams that shift focus from transaction processing to strategic value delivery. The right P2P solution forms the foundation for this transformation.