P2P automation proves cost-efficient

Singapore - Corporations can reduce costs, improve spend visibility and increase efficiency by automating their procure-to-pay (P2P) process, says a new study.

P2P is a procurement process that spans sourcing, order placement, payment, settlement, reconciliation, control, audit and reporting.

The study, conducted jointly by Visa and Deloitte Consulting found that best-in-class organisations were automating the P2P process to drive process efficiencies and achieve cost savings. "Automating corporate expense management through the elimination of paper-based processes and labour-intensive activities is becoming an increasingly important source of new efficiencies and cost savings for today's business," says Darren Parslow, global head of commercial solutions at Visa International.

"The P2P best practices can help companies identify needed improvements and boost the efficiency of their expense management process so that they can actually realise those cost savings."

More than 60 individual best practices identified several factors contributing to the improvement of the P2P process. These include automating the P2P process from start to finish, creating visibility and mainstream commercial payment initiatives with active senior management support, creating a formal supplier management function, developing an integrated controls strategy, and designating a commercial card for company meetings-related expenditures.