Corona and Purchase-to-Pay: 3 points to consider

Corona and the measures that have been taken, everyone has to deal with it. So do we as P2P professionals. How does Corona affect the P2P process and our work as P2P professionals?

Corona and Purchase-to-Pay: 3 points to consider

In this article, we look at 3 elements:

1. Insight into the Supply Chain

The impact of Corona can be felt throughout the Supply Chain. The shortages of Personal Protective Equipment and hygiene products make it clear that insight into suppliers' stocks is required.

Higher maturity companies have digital insight into the inventory of their main suppliers (and even their suppliers). However, this is not yet the practice in many organizations and leads to many calls and emails to suppliers. Conversely, we see that many customers are also experiencing a significant increase in the number of questions from suppliers. What is the status of my invoice? How do I comply with government guidelines? What am I allowed to do, what am I not allowed to do? We expect that after the Corona crisis, companies will invest more insight and online collaboration in the Supply Chain.

2. Control supplier cash flow and payment terms

The impact of the Corona measures varies by organization. Some organizations are noticing a huge decline in turnover. Other organizations are changing less.

The greater the impact, you will have a tighter control over cash flow. The question is what you do with suppliers' payment terms.

We see that, fortunately, our clients still pay their invoices faithfully within the payment period. Or even pay their bills earlier. Tribute to all these companies that are acting socially in this crisis!

3. Improvement projects via video

The Corona measures are forcing companies to take a close look at their priorities. At a number of organizations, we see that P2P improvement projects are being put on the back burner. While other organizations, on the other hand, are moving full speed ahead.

It is precisely this time that you can make good use of to improve processes and your insight into the supply chain. Most of our P2P processes are continuing steadily and we are working hard via video calling.

Our colleague Derek Hooyman is currently supervising a P2P Software selection process at a government agency. Last week, suppliers' presentations took place digitally, including click sessions for users. Microsoft Teams is a good solution for this.

Want to know more about Purchase-to-Pay in the Corona era? Please contact Ewald Schaap: ewald@s2pmore.com

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