In today’s competitive world, landing on the peak of success is “must” for every procurement business and to reach that stage, it is imperative to take advantage of the available technology and stay update in the procurement field. Since from the inception procurement has seen so many changes down the line and Procure to Pay (P2P) is no exception. With the current technologies in use, there is no doubt that businesses change their existing operation to real-time keeping the rapid growing technologies such as business to business network and eProcurement alongside the line.
With the advent of recent technologies and digitization, customers get real-time information via social media, web and mobile based applications. Similarly, a P2P user do expect real-time data that can be accessible at any location in any point of time using different gadgets. However, when the changes are taken into consideration, procure to pay is expected to meet the expectation of users by leveraging into cloud based technologies where a real-time data can be accessed anywhere, anytime.
Cloud Based Technology
Cloud based collaboration will become a part of procure to pay technology in the coming days. The cloud based technology enables the businesses to know buyers, suppliers, transaction between the duo, product order details along with invoice. Accessing entire transaction details under a single roof enables 100% transparency and helps maintaining a healthy relationship between vendors and buyers.
The cloud based procure to pay technology will gain a significant momentum in 2017 when businesses and electronic invoicing networks become acquainted with the cloud. It collaborates small and mid-size businesses with their partners crossing the boundaries, which automatically increases the efficiency of business and helps growing its network far and wide. Due to this technology, both vendors and buyers enjoy its benefits as it creates a circle of efficient collaboration and lesser cash flow risk. The higher the efficiency, the greater the impact on business. Besides, companies with cloud based network, no doubt, will be the market leaders, who grow far and wide thus minting profits beyond expectations.
Elevated Pay Strategies
Often, in supply chains, friction between buyers and suppliers happens due to payment. Most of time, seller wants to get paid immediately (or after the goods delivery), but buyers want to hold as long as possible and when they are completely satisfied in terms of quality and other aspects, they’ll release the payment. In order to abolish aforesaid friction, an innovative tactic will be incorporated in the procurement cycle, which optimizes the payment strategy establishing transparency and harmony between the duo.
Cloud technology, when implemented alongside automated P2P solutions opens numerous payment strategies. Automated P2P solutions will be equipped with numerous options such as negotiated discounts, dynamic discounts, electronic transfer and automated transfer (Payments are pre-fixed by the supplier on mutual consent). Nonetheless, all these options do not act as water that fits in every bowl. Every transaction made by the duo has unique qualities, thus the strategy has to be varied. Hence, buyers ought to discuss about the payment terms by considering the various aspects such as operating time, working capital requirements, transportation and to name a few.
Optimizing the payment strategy helps mitigating the potential risks. Moreover, it eases the tense and gives way for a relaxed and sustainable business.
Unlimited Benefits And Happy Business
When businesses make use of advanced P2P technology, they can expect multiple benefits, which significantly includes cost reduction. But, when businesses take advantage of this technology, they will never be deprived from other benefits such as fewer errors, better cash position, excellent revenue, competitive pricing, maintaining exceptional buyer-supplier relationship and customer satisfaction. For startups, the automated procure to pay technology acts as a booster to manage its revenue by optimizing its payables and managing the capital expenditure with exceptional accuracy.
Added to this, the electronic payment systems help organizations to manage discounts and return. The accurate and clear information provided by the system helps in planning, fore-casting and decision making. With this technology, major complexities, predicted in the business can be addressed with ease. It also allows organization to establish better buyer-supplier relationship by transferring data in real-time and processing the payment cycle at lightning speed.
Down the line, procurement leaders can expect automated procure to pay technologies that constantly evolve alongside other technologies, which embrace real-time data, make payments at lightning speed, augment operational efficiencies and help establishing a cordial relationship between buyers and sellers. Added to this, electronic invoicing, B2B commerce network & social media not only help businesses to achieve tactical benefits, but also helps in maintaining a sustainable business.