Reason for a baseline measurement
Why start a P2P analysis? There are many different reasons for this. In practice, this is often born out of necessity. The most common reasons for a baseline measurement are explained below:
- Dissatisfied users: At every stage of your P2P process, users may not be satisfied with how the process is going. This is not only limited to the internal departments of the organization, suppliers are also part of the process and can experience issues.
- Audit Issues: If there is suddenly a report from the accountant or the internal Audit department, a lot often has to be done out of the blue. A comprehensive analysis and a fast, effective solution to improve your P2P process are then a priority here.
- Savings program: Do you want to save on the burdens within the organization? Then Procurement is often an important station where the P2P process plays an important role.
- Objective Test: Is there not necessarily a need, but are you very curious about the performance of the P2P process within your organization? Then a baseline measurement is the best way to collect objective data.
- Major improvement program: Major changes within the organization aimed at improvement also require you to measure how the current P2P process works. Examples include an organization-wide Lean program, or an implementation of a new ERP system.
Before you actually start measuring, it is important to first ask yourself what exactly you want to achieve with a P2P analysis. There are four potential questions to ask yourself before starting the baseline measurement, namely:
The answer to these questions above is ultimately your goal for the change process after the analysis. Of course, this can also be a combination of efficiency, insight, grip & control and capitalizing on purchasing opportunities.
Carrying out the baseline measurement
Based on the information above, do you see reason to start a P2P analysis? Then let's go quickly to the performance. But beware, the aforementioned causes can also cause tunnel vision, affecting the result. So, in addition to your concrete goal (based on the reason and what you want to achieve with a P2P analysis), it is also important to keep looking at the breadth. This way, you ensure that you are not only focused on your set goal, but you also stay focused on any other contaminations in your P2P process. We would like to follow the following step-by-step plan before starting the analysis:
- Make a plan and determine your strategy;
- Form a team of people who understand the process well;
- Do a qualitative and a quantitative analysis;
- The process and outcome are the starting point of the change process.
In the rest of this blog, we will further discuss qualitative and quantitative analysis, provide additional tips for analyzing your P2P process and tell you more about the outcome of the analysis of your P2P process and about the next steps based on your analysis. Want to continue reading? Then click here.