Top 4 Procure-to-Pay Solutions Your Business Needs
Procurement has evolved considerably over the past decade. It is no longer a service-centric function carried out with spreadsheets and paper forms. Procurement management has started to take an extremely strategic role, and technology is at the heart of this evolution.
These technology powered procure-to-pay solutions offer organizations more insights than ever helping them take data-driven purchasing decisions. Gartner predicts that over 50% of organizations will have deployed cloud-based procure-to-pay solutions by 2025. Over the past-decade, SaaS based P2P solutions have taken over their on-premise counterparts.
Organizations have started to embrace cloud-based purchase-to-pay solutions as they automate and streamline the source-to-settle process rapidly. There are a number of P2P platforms that cater to organizations of all sizes. But the best procure-to-pay solution for any organization is very specific to the organizational requirements and potential.
So, in order to help you figure out which procure-to-pay solutions are most suited to your business needs, we have put together this list of the top 4 procure-to-pay solutions that will drive efficiency in procurement management. Included in our list are software solutions ranging from purchase requisitions apps to contract approval and document matching system.
The top 5 procure-to-pay solutions
Initially, procure-to-pay solutions were just an extension of archaic ERP tools and accounting systems. In early 1990s, they were primarily on-premise solutions with only a handful of features that provided the “ease of use”. The procure-to-pay solutions listed here belong to the cloud-delivery model relevant to procurement today.
1. Purchase requisition solution
Purchase requisition solutions help organizations raise and process purchase requisitions, obtain necessary approvals, and dispatch PRs to the procurement department.
Purchase requisition solutions make it easy for organizations to track the status of a purchase requisition throughout the procure-to-pay cycle. This is done through features like fluid forms, which help you capture, approve, and keep track of purchase requests.
2. Purchase order solution
Purchase order solutions help organizations process purchase requisitions, create purchase orders, obtain PO approvals, and dispatch POs to the vendors. You can issue POs and generate orders automatically from approved purchase requests.
Purchase order solutions make it easy for organizations to track the status of a purchase order throughout the procure-to-pay cycle.
At any given point of time, businesses can instantly find out:
- Purchase requisitions and POs under process
- List of orders placed with vendors
- The agreed upon cost and purchasing terms
- Order status
- The approximate time of delivery
Cloud-based procure-to-pay solutions like Kissflow Procurement Cloud let stakeholders manage their procurement process even when they are on the go.
3. Vendor management
Vendor management solutions transform the way organizations work with suppliers. They prevent the exposure of confidential supplier information and offer a great depth of visibility into vendor data and performance. This consistent and accurate vendor data can be analyzed to take strategic sourcing and procurement decisions.
Procurement teams can onboard, maintain, and manage vendors in an easy-to-use, comprehensive tool.
Additionally, purchase-to-pay solutions track every aspect of vendor performance and contractual obligations like delivery timeline, quality of the product/service, and more. Automated workflows and rule-based process flow ensure compliance and raise red flags if there are any issues with policy adherence.
Invoice management solutions process, approve, and store invoices securely. Rule-based processing takes care of routing and matching invoices with related order receipts and purchase orders. You can approve your invoices on the go and perform quick three-way matching.
Modern procure-to-pay solutions are capable of managing exceptions like shipping costs and taxes that aren’t represented in a PO. In case purchase orders and requisitions were not issued or some information doesn’t match the pre-approved PO, the system sends a notification to all important stakeholders in the process.
5. Contract management
In manual contract management, organizations waste time looking for paperwork and filing cabinets rather than monitoring and enforcing contracts. This inefficient system often paves the way for misplaced, inaccurate, or stagnant contracts that hinder an organization’s growth.
Procurement solutions inject a new level of visibility and efficiency to a contract management process. Storing contracts in the cloud lets multiple stakeholders view, edit, and access a contract creating a collaborative environment that improves employee efficiency, accuracy, and productivity.
Why you need an all-in-one procure-to-pay solution
Why do you need a comprehensive procurement solution? Why not individual apps for specific purchasing functions?
The answer is that having a strong procure-to-pay system to monitor and manage procurement processes is vital.
Options like Kissflow Procurement Cloud help organizations keep track of their inventory, supplies, and overall operational expense effectively in one place. The key is data siloes: huge pieces of procurement data from (say) your PO management app and others, all incapable of interacting with similar data from other procurement functions. A comprehensive procurement system keeps things fluid and seamless–an approved purchase requisition automatically triggers a PO with the right details already entered, and so on . With Kissflow, you won’t have to worry about redundant tools either: it can work seamlessly with other software you may be using, even your accounting or ERP tool.
Other than these key advantages, you can also take care of the 6 benefits in the following illustration:
Key features your purchase-to-pay solution should offer
Procure-to-pay solutions are no longer the archaic, disparate systems they used to be. They are embracing procure-to-pay digitization at a rapid pace to replicate and replace the functionalities in traditional systems. Here’s a list of features you need to look for in your digital P2P solution:
Fluid forms help you capture, approve, and keep track of purchase requests.
Issue POs and generate orders automatically from approved purchase requests.
Onboard, maintain, and manage vendors in an easy-to-use, efficient platform.
Approve your invoices on the go and perform quick three-way matching.
Generate actionable, data-driven insights from your purchasing-related data.
Connect your procurement cloud with other essential finance software systems.
Simplify your procure-to-pay process using Kissflow Procurement Cloud
To find the right procure-to-pay solution, organizations need to determine understand their process requirements and then find a solution that will match it. Cloud-based procure-to-pay platforms let businesses to automate and streamline purchasing activities across multiple industry verticals.
Kissflow Procurement Cloud is a digital procure-to-pay solution that lets organizations take control of essential procurement functions. It can be connected with a number of other apps and software through API integration.
Depending on your needs, Kissflow can be used to basic stuff like capturing organizational spend, managing contracts, etc. or do something extensive like spend analysis, sourcing optimization, risk mitigation, vendor management, and more.
Are you on the lookout for a procure-to-pay solution that will help you stay on top of purchases and cost? Take the Kissflow Procurement Cloud demo for a spin today.
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