What are the emerging trends and innovations in Procure-to-Pay that you are following or adopting?

embracing new developments in Procure-to-Pay, emphasizing supplier collaboration platforms, blockchain, artificial intelligence, sophisticated analytics, and sustainability initiatives to improve efficiency and make strategic decisions.

Tracking, transparency and objectivity are key topics in purchasing processes. The implementation of automatization tools will guarantee these goals compliance.

In Procure-to-Pay, we're closely monitoring emerging trends like AI-driven analytics for smarter decision-making and blockchain for enhanced security. Additionally, we're embracing no-code systems to tailor process flows, fostering transparency, and boosting efficiency across our procurement operations.

For cost effective products you need to maximize outsourcing and minimize in house manufacturing. In-house manufacturing should be for critical components and final assembly Accordingly divide vendors like tier 1 for sub assemblies, 2 for less critical components and 3 proprietary items Use AI for vendor selection according to the required quality of components, cost and delivery terms Allow vendors to supply online manufacturing plants ie JIT Pay to vendor according to use of part/sub assembly quantity on final product in manufacturing plant Make use of automation in manufacturing plant on assembly lines along with AI for quality checks of repetitive natures

Several emerging trends and innovations in Procure-to-Pay (#P2P) : 1.Artificial Intelligence (#AI) and Machine Learning (#ML) 2.Blockchain Technology : #Blockchain in P2P processes to enhance transparency, security, and traceability in supply chain transactions. 3.Supplier Collaboration Platforms 4.Mobile Procurement 5.Predictive Analytics and Insights: Advanced analytics tools are being leveraged to analyze historical procurement data and identify patterns, trends, and opportunities for optimization. Predictive analytics capabilities enable organizations to forecast demand, optimize inventory levels, and anticipate market fluctuations, driving smarter procurement decisions and cost savings. 6.Integration with #E-Commerce Platforms

AI and automation are revolutionizing P2P processes by streamlining operations and enhancing efficiency. By leveraging AI, organizations can analyze spend data to uncover savings opportunities and gain insights for strategic sourcing decisions. Automation simplifies approval workflows, invoice processing, and payment reconciliation, reducing errors and improving data accuracy. This shift towards AI and automation enables organizations to eliminate manual tasks, enhance data quality, and ultimately drive greater efficiency throughout the P2P cycle.

Automation is revolutionizing P2P processes by streamlining repetitive tasks such as purchase order processing, invoice matching, and payment approvals. Artificial intelligence (AI) is being used to enhance spend analytics, supplier management, and fraud detection within the P2P cycle.

RPA ( Robotic Process Automation ) is used to automate routine tasks such as data entry, document processing, and compliance checks. It improves accuracy, reduces cycle times, and frees up resources for more strategic activities .

In my personal opinion, Cloud and SaaS are technology trends. However they do not have capability to help improve process efficiency unless process inefficiencies are removed. I believe the same process reimplement after removing the inefficiencies in the same IT system (which could be On Prem) could be equally if not more efficient. Why more, because you would have fraction of training and change management effort required during a cloud SaaS migration. Of course all other efforts will remain same.

It is the quality of processes and adoption scale that is important. Merely the companies adapt processes to review/simplify before implementation. it is matter of price ( total cost), company policies, security issues to choose a method of the software delivery. For the businees user what is important is the easiness of usage and UX. The integration need to be transparent and fast whether it is saas, cloud, on-premise. We as procurement are moving more and more services to cloud. Many startups deliver point solution to be integrated to the base used system (ERP, BSM, E-PROC), trhe question to be raised is the security of data delivery, data exchange, data maintenance and storage.

When implementing cloud and SaaS solutions for P2P, prioritizing integration is key. Ensure that your chosen P2P system seamlessly integrates with your existing ERP, CRM, and BI systems. This allows for real-time data exchange and provides a comprehensive view of your procurement process. Additionally, opt for platforms that offer robust APIs and connectors to facilitate smooth integration with other cloud-based applications.

The success of P2P departments shouldn't solely be linked to a technological transformation of cloud tools. To guarantee success and process optimization, the implementation of a new tool must be accompanied by the transformation of business processes that should consider the capabilities of these tools. Only by achieving a close relationship between business transformation and technological transformation can a company successfully optimize its P2P processes.

Minimize customizations and follow the best practice of the software even if that leads to tweaking or adjusting departmental workflow. Most major players set the stage and customers follow the play book when it comes to optimizing the cost/value of the software. Not everything can be suitable to all just 'out of the box', but follow the leaders as they guide you to efficiency, time savings, accuracy, and flexibility, which ultimately leads to $.

Collaboration based on the electronic data exchange with a Supplier Portal inPlace. Single Point of Contact through the whole procurement cycle in searching, pre-qualification, qualification, sourcing, contracting, procurement, PO/GR exchange, invoicing and further more delivery notice wit a seamless integration with ERP.

To maximize the benefits of supplier collaboration, prioritize innovation in your approach. Encourage open communication channels where suppliers can share ideas and suggestions for process improvements or product innovations. Implement regular brainstorming sessions or innovation workshops with key suppliers to foster creativity and problem-solving. By actively involving suppliers in the innovation process, you can harness their expertise and insights to drive continuous improvement and stay ahead of the competition.

As it is well mentioned, for me the keys would be the following: - Centralizing supplier management and relationships on one platform. - The aforementioned tool should have capabilities to analyze the current geopolitical situation for risk reduction. - A bidding and contract management platform will help strengthen relationships and reduce costs. - Digitization of documents for the automation of the P2P flow through this platform. - Finally, this platform must have a very good look and feel, as well as be accompanied by training so that suppliers have a straightforward immersion process.

Organizations are increasingly leveraging supplier collaboration platforms to improve communication, collaboration, and transparency with their suppliers. These platforms enable real-time interaction, data sharing, and performance tracking, leading to better supplier relationships and enhanced procurement outcomes.

Nos últimos anos muitos fornecedores adotaram portais próprios para agilizar a retirada de documentação. Isso facilita o fluxo e não gera atrasos ou falta de resposta. A exemplo de quando solicitações eram realizadas por e-mail e muito se perdia. Adicionalmente, vem crescendo um movimento de treinamentos desses portais assim como aperfeiçoamentos que os deixam mais intuitivos, facilitando a navegação e suporte.

To effectively integrate sustainability into your P2P process, establish clear sustainability goals and criteria for supplier selection. Consider factors such as environmental impact, ethical sourcing practices, and social responsibility initiatives. Collaborate with suppliers who share your commitment to sustainability and seek out partnerships with organizations that offer sustainable products and services. Implement regular audits and assessments to monitor supplier compliance with sustainability standards and track progress towards your sustainability goals. By prioritizing sustainability in your procurement decisions, you can contribute to a more environmentally friendly and socially responsible supply chain.

Sustainability has become a critical factor in procurement decisions, leading organizations to prioritize environmentally friendly practices in their P2P processes. From selecting eco-friendly suppliers to implementing green procurement policies, sustainability initiatives are reshaping how businesses approach procurement operations.

A sustentabilidade está em alta, assim como as ações que a empresa (compradora) pode efetuar em conjunto com seus fornecedores. Cada vez mais as empresas se aproximam dos seus fornecedores, estabelecendo medidas e ações de desenvolvimento do fornecedor, garantindo que o mesmo obtenha certificações, e aumente a qualidade do produto fornecido. O fornecedor passa a produzir mais, com mais qualidade, e com certificações que garantem redução da pegada de carbono, assim como certificam que não houve trabalho escravo no fluxo. Os compradores neste caso também ganham, garantindo disponilidade e eficiência de sua cadeia de insumos.

Instead of trying to visualize and analyze everything at once, it's advisable to start with one aspect of the P2P process. This makes adoption process smoother and allow teams to understand the tool's capabilities and learn how to use it. Introducing new tools and processes often meets resistance. It is needed to have a change management plan in place to ensure smooth adoption. Garbage in, garbage out. If the underlying data is not of high quality, then the insights and visualizations produced can be misleading. We need to ensure that under reporting we have clean, accurate, and complete data.

When implementing data analytics and visualization tools in your P2P process, focus on user-friendly interfaces and intuitive designs. Choose tools that offer customizable dashboards and interactive features, allowing users to drill down into specific data points and explore trends. Prioritize integration capabilities to seamlessly connect with your existing P2P systems and databases, ensuring real-time data updates and accuracy. Provide comprehensive training and support to users to maximize the adoption and utilization of these tools across your organization. By prioritizing user experience and accessibility, you can effectively harness the power of data visualization to drive informed decision-making and optimize your P2P performance.

The integration of data analytics and visualization in P2P is transforming procurement. Predictive analytics and machine learning are particularly impactful, helping forecast demand, assess supplier risks, and optimize spend. Real-time dashboards provide a holistic view of the P2P cycle, enabling better decision-making and continuous improvement. As these tools evolve, we’ll see more innovations like AI-driven contract management and blockchain, further streamlining P2P processes and enhancing procurement's strategic role

Nos últimos anos o uso do Power BI cresceu, principalmente em finanças, está sendo amplamente implantado com objetivo de criar painéis com informações relevantes e dar visibilidade a dados que antigamente eram enviados por e-mail e que por muitas vezes se perdiam. Em Power BI's criados pode-se conservar uma base histórica com a finalidade de prever o futuro e acompanhar tendências ou pontos de desvio. Adicionalmente, por ser uma ferramenta de aprendizado fácil, a capacitação ocorre de forma rápida, e a aplicação em ambiente real pode ser efetuada em questão de dias pós o inicio dos aprendizados (desde que haja uma base de dados confiável para carga na ferramenta).

Traditionally, P2P systems prioritized functionality. Can it process orders? Can it match invoices? But the new top notch of P2P solutions goes beyond functionality. It’s about understanding that every interaction a user has with the system impacts their productivity. It is also connected with suppliers experience and simplicity of cooperation. Querying a chatbot about a specific invoice or asking a voice assistant to pull up the latest procurement report - it's happening now. AI-driven interfaces are not mere novelties; they're revolutionizing the way users engage with P2P systems, making interactions more human-like.

To enhance user experience and engagement in your P2P system, prioritize simplicity and intuitiveness in design. Implement a clean and organized user interface with clear navigation and minimal clutter. Offer personalized features and customization options to cater to different user preferences and needs. Provide comprehensive training and support resources to empower users to navigate the system effectively and address any issues or questions they may have. Additionally, gather feedback regularly from users and incorporate their suggestions for continuous improvement. By focusing on user experience and engagement, you can drive higher adoption rates and productivity within your organization's P2P process.

Várias medidas podem ser adotadas para melhorar a experiência e envolvimento do usuário, dentre as citadas as que na prática mais funcionaram foram: - Feedback Contínuo: Coletar feedback dos usuários e implementar melhorias com base nesses insights é fundamental. Isso demonstra que a plataforma valoriza a opinião dos usuários e está comprometida em aprimorar a experiência. - Gamificação: Recursos como recompensas, conquistas e desafios podem tornar o uso do sistema P2P mais divertido e motivador, aumentando o engajamento. - Canais Múltiplos: Oferecer suporte por meio de aplicativos móveis, chatbots e assistentes de voz permite que os usuários escolham a forma mais conveniente de interagir, melhorando a experiência geral.

1. Procurement is good place to document carbon footprint associated with the transaction. So a shipment from another part of the world may be cheaper , but has a greater carbon footprint associated. FOB terms and shipping method could be used to calculate a carbon footprint associated with the transaction and document Scope 3 emission for companies. 2. Landed Cost Management is another important concept to tie real cost of procurement to measure Gross Profit Margin accurately by product.

Blockchain Technology: Blockchain technology is being explored in P2P to enhance transparency, security, and traceability in procurement transactions. By leveraging blockchain’s decentralized ledger system, organizations can ensure immutability of records, reduce fraud risks, and improve trust among stakeholders in the supply chain.