Data-Driven Efficiency: Procure-To-Pay Analytics

What is procure-to-pay analytics?

Procure-to-pay (P2P) analytics is the use of data and analytics to improve the P2P process. This includes the process of identifying and sourcing suppliers, negotiating contracts, placing orders, receiving goods and services, and processing payments. P2P analytics can help accountants improve the efficiency, effectiveness, and profitability of the P2P process.

Benefits of P2P analytics.

There are a number of benefits to using P2P analytics including:

• Improved visibility: P2P analytics can help accountants gain greater visibility into the P2P process. This can help identify areas where the process can be improved and to make better decisions about how to allocate resources.
• Reduced costs: P2P analytics can help accountants reduce costs by identifying areas where the business is overpaying for goods and services. It can also help accountants to identify and eliminate waste and fraud.
• Improved compliance: P2P analytics can help accountants improve compliance with financial regulations. For example, P2P analytics can be used to track and monitor vendor payments to ensure that they are made on time and in accordance with the terms of the contract.
• Enhanced decision-making: P2P analytics can help accountants make better decisions about the P2P process. For example, P2P analytics can be used to identify the best suppliers for each purchase, to negotiate better contracts, and to optimize the procurement process.

How to use P2P analytics.

P2P analytics can be used in a number of ways, including:

• To identify areas where the P2P process can be improved: For example, P2P analytics can be used to identify areas where the process is slow, inefficient, or error-prone.
• To identify and eliminate waste and fraud: For example, P2P analytics can be used to identify duplicate payments, unauthorized purchases, and fraudulent transactions.
• To reduce costs: For example, P2P analytics can be used to identify areas where the business is overpaying for goods and services, and to negotiate better contracts with suppliers.
• To improve compliance: For example, P2P analytics can be used to track and monitor vendor payments to ensure that they are made on time and in accordance with the terms of the contract.
• To enhance decision-making: For example, P2P analytics can be used to identify the best suppliers for each purchase, to negotiate better contracts, and to optimize the procurement process.

Tips for using P2P analytics.

• Choose the right P2P analytics solution: There are a number of different P2P analytics solutions available, so it is important to choose a solution that is right for your organization’s size, industry, and budget.
• Implement the P2P analytics solution properly: It is important to implement the P2P analytics solution properly to ensure that it is working properly and that it is meeting your organization’s needs.
• Monitor and update the P2P analytics solution regularly: It is important to monitor and update the P2P analytics solution regularly to ensure that it is working properly and that it is meeting your organization’s needs.
• Use P2P analytics to identify trends and patterns in spending: For example, you can use P2P analytics to identify the categories of goods and services that your business spends the most money on. This information can be used to negotiate better contracts with suppliers and to optimize the procurement process.
• Use P2P analytics to benchmark your performance against industry standards: This can help you identify areas where your business is lagging behind and to make improvements.
• Use P2P analytics to generate reports that can be used to communicate the value of the P2P process to management and other stakeholders: This can help you to secure resources for the P2P team and to implement new initiatives.

How Airbase helps with P2P analytics.

Airbase offers a P2P platform that gives users a one-stop shop to see all purchases in one place. This consolidated view is extremely useful, especially since, traditionally, analysts have had to collect data from different sources for card spend and bill payments. Airbase also alerts users when a request to make a purchase for a product or service is already being paid for by the company. This means that companies can avoid duplicate, wasteful, and zombie spending.

Airbase has devised a set of P2P analytics that can help track and benchmark a company’s procurement performance. Overall, Airbase helps companies get more spend under management, which is the north star of P2P metrics. The detailed metrics are categorized according to the modules that are offered in our P2P software.