Procure-to-pay. It’s a term that every finance professional is familiar with. And with the pressure to become more efficient in order to stay competitive in a tough economic market, companies that haven’t yet automated or who haven’t upgraded their automation solution in some time may now be thinking about doing so.
For finance executives and decision influencers, it may seem logical to consider procurement first when upgrading. After all, purchasing happens earlier in the chronological process. Doesn’t it make sense to start there and then work backward to accounts payable?
Starting out with AP automation can deliver a considerably faster ROI.
“Procurement processes chronologically occur first, however if you want to ensure the success of a holistic
financial transformation, AP is the logical place to start,” says Sam Mele, SVP of Sales at Basware. “Procurement processes focus on identified savings and budgeted spend, while AP processes capture actual spend. Understanding what has actually been spent and how those goods and services were paid for is the essential first step to optimizing procurement functions” he adds
In fact, the benefits from a deployment that starts with procurement can take a long time to realize, undercutting the deliverables promised in the business case and adding pressure to the project team. On the other hand, starting with AP automation can yield faster results while incurring less resistance from suppliers.
Here’s why it makes more sense to begin your finance automation journey with accounts payable instead.
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