What is Procure-to-Pay?
Procure-to-pay, also known as P2P, is a term used in the software industry to designate a subdivision of the procurement process. These systems enable the integration of the purchasing department with the accounts payable department.
The term comes from the ordered sequence of procurement and financial processes, starting with the first steps of procuring a good or service to the final steps involved in paying for it.
How does it work?
The P2P process starts with identifying a need, like needing office supplies. Then, a formal request is submitted to purchase those supplies. After approval, a purchase order is sent to a chosen vendor. Once the supplies are received and verified, the vendor sends an invoice. Finally, the business reviews and approves the invoice before making the final payment. This streamlined process helps ensure efficiency, cost control, and strong supplier relationships.
To take full advantage of a procure-to-pay system, vendor self-service and process automation should be the focal point. ICG’s portal-based P2P solutions can be either standalone applications or part of a comprehensive solution suite. Because of their modular design and cloud hosted delivery model, ICG’s P2P systems provide high levels of configurability, speed of implementation, and integration with any back-end system.
ICG’s solution suites includes vendor onboarding and supplier onboarding, vendor portals and supplier portals, accounts payable (AP) automation, data capture and document assembly, workflow and much more.
To explore the benefits of a P2P system for your organization, contact ICG Consulting to arrange a call. Or, schedule a demo for your team to learn about our solutions can benefit your organization.