Setting up and performing an analysis of your P2P Process

In this blog, you will learn how to analyse and baseline the Purchase-to-Pay process within your organization. It is also popularly said: “To measure is to know, to guess is to miss and to gamble is to gamble.” If you want to optimize your purchasing process, it is therefore extremely important that you are aware of how your current P2P process is currently going. In this blog, we'll help you get started by explaining how you can map your P2P process from different angles, what to take into account when analyzing your P2P process and what kind of outcomes you can expect. Would you rather listen to the information instead of reading it? Then watch our webinar!

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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: