12 Questions to Ask About Your Procure-to-Pay Processes

Table of Contents

For today’s forward-looking distribution organizations, improving productivity is about improving core business processes, such as pay processes. How mature are they? How efficient are they? How close are they to best practices?

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Evaluating Your Pay Processes

Procure-to-pay – sourcing, planning, buying, receiving, payment – is a core business process that offers exceptional opportunities for optimization and integration. Ask these questions to evaluate the maturity of your P2P – and to know where you can make changes that will maximize efficiency:

1. Does your purchasing team have a sourcing database in a system (not Excel)?

2. How easy is it to buy from new organizations?

3. Do you have a system to forecast demand (sales) beyond “same as last year”?

4. Do you have a sales and operations planning (S&OP) process to discuss the forecast, and turn in it into an inventory plan (by month for at least 12 months), complete with agreed-upon service levels?

5. Do you have a vendor portal to communicate with suppliers?

6. Are you tracking vendor performance and, if yes, are your vendors improving?

7. Do you track inbound shipments by product and lot number?

8. Can you divert shipments without them ever crossing your dock doors?

9. Are more advanced receiving processes (e.g. license plating) part of your process?

10. How is quality maintained? When a customer calls with an issue? Or by established processes (e.g. receiving inspection)?

11. Do you have an automated three-way match for accounts payable?

12. Do you have a separate defined business process to work with drop-ship suppliers?

Making the Most of Your Pay Processes

Making the most of your pay processes can yield big benefits for your company. Do you need help optimizing your pay processes? Turn to Ultra Consultants. Contact us to get started today!

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