Well-organized P2P and contract management is essential to keeping business processes running smoothly. Especially companies with complex supply chains or strict compliance regulations, such as those in manufacturing, healthcare and construction, often experience challenges within P2P and contract management. These companies often experience unique challenges, such as tracking contracts, supplier relationships and complying with regulations. Did you know that due to poor contract management, companies can lose up to 9% of their annual revenue due to “contract value leakage” (Deloitte)? Or that nearly 80% of companies worldwide struggle with transparency in their supply chain? This leads to inefficiencies and higher costs (PwC).
In this blog, cover and discover how Archifact Shopper helps improve P2P and contract management with smart automation!
What is P2P / procurement and contract management?
Procurement and contract management includes all the processes required to procure goods and services and manage contracts. This starts with requesting a purchase and ends with paying the supplier.
- Purchasing management: The process of selecting and purchasing products or services, including soliciting bids and negotiating terms.
- Contract management: Managing contracts to ensure both parties meet their obligations, including monitoring and revisions.
- P2P (Procure-to-Pay): An integrated process that covers the full cycle from procurement to payment, ensuring a streamlined and transparent process.
- Procuration ‘in advance’: In the procuration process, orders and invoices are pre-approved based on set authorizations. This provides more control and transparency in the approval process within procurement and contract management.
Procurement and contract management are crucial to a smoothly running business, especially in industries where compliance and efficiency are high on the agenda. By automating and digitizing challenges such as automatic contract renewals and compliance, you can not only save time, but also increase the quality and control of your processes.
The 5 biggest challenges as well as solutions of P2P and contract management
- No grip on purchasing
- Challenge: Many organizations struggle to control their procurement processes, leading to inefficiency and waste.
- Solution: Shopper centralizes all procurement activities in one easy-to-understand system. This gives you complete control over the procurement process, from requisition to delivery, allowing you to better plan, manage and optimize.
- No or poor contact registration
- Challenge: Inadequate recording and oversight of contracts can lead to missed deadlines and compliance problems.
- Solution: Our software allows you to capture and manage all contracts digitally. You always have access to up-to-date contract information, receive automatic notifications about due dates and review times, and thus avoid missed deadlines and compliance problems.
- Workable process, no structure
- Challenge: Complex and time-consuming processes can cause delays and errors.
- Solution: We automate routine and repetitive tasks within your processes, such as tracking contract renewals and approvals. This streamlines the process, speeds up tasks and significantly reduces the risk of errors.
- Coding of invoices afterwards
- Challenge: Manual and post-coding of invoices can lead to errors and significant delays.
- Solution: Our solution integrates invoice coding directly into the procurement process. This means invoices are automatically coded based on preset rules, increasing your accuracy and reducing processing time.
- Defining fiat after the fact
- Challenge: The lack of automated approval workflows can lead to delays and an inefficient approval process.
- Solution: Speed up your approval processes with our automated workflows. These workflows ensure that invoices are automatically sent to the right people for approval, depending on their role and authority. This reduces turnaround time and prevents bottlenecks in the approval process.
How to optimize P2P and contract management with automation
Our collaborative software provides an integrated solution that covers the full cycle from procurement to payment, giving you a complete overview and streamlined processes. This prevents errors and delays, and increases the efficiency of your organization.
By centralizing your purchasing activities in one clear system, you get a grip on your processes and avoid waste and inefficiency. You have full control over every step, from request to delivery, ensuring a smooth running of your procurement activities. Contract management also becomes easy with our software. You can capture and manage contracts digitally, with automatic notifications for due dates and revisions. This prevents missed deadlines and compliance problems, and keeps you always up to date with the latest information.
Automation plays a crucial role by streamlining routine and repetitive tasks. Contract renewals and approvals are handled automatically, speeding up your processes and reducing the risk of errors. Invoices are automatically coded during the process, increasing accuracy and reducing processing time. In addition, automated approval workflows speed up your approval processes by sending invoices directly to the appropriate approvers depending on their role and authority. This reduces delays and makes the approval process more efficient.
Digitization plays an important role in the future of procurement and contract management at organizations. By managing contracts and procurement processes digitally, you gain faster access to information and improve regulatory compliance. Our solutions ensure that you are always up-to-date and make it easy to manage and review contracts.
With this integrated approach, you optimize your P2P and contract management processes, reducing administrative burdens and increasing efficiency.
The impact on different sectors
Procurement and contract management are crucial to a smoothly running business, especially in industries where compliance and efficiency are key, such as healthcare, manufacturing and construction. By automating and digitizing challenges such as automatic contract renewals and compliance, you save time and increase control over your processes.
While this software is ideal for industries with complex or intensive supply chains, such as manufacturing and infrastructure, it is important to emphasize that Shopper is not industry-specific. Regardless of the industry you operate in, our software helps optimize procurement processes and increase efficiency, making it a valuable tool for any organization.
