What is procure-to-pay?

Procure to Pay (P2P) is a comprehensive business process that covers all the steps involved in procurement, from the initial identification of a procurement need to the final payment to suppliers. This end-to-end process includes activities such as requisitioning, supplier selection, purchase order creation, goods receipt, invoice verification, and payment processing.

The Procure to Pay process aims to streamline and optimize the procurement cycle, ensuring that organizations procure goods and services efficiently, at the right price, and from approved suppliers. Automation and digital tools are often employed to enhance the efficiency and accuracy of P2P processes.

Effective Procure to Pay management leads to cost savings, improved supplier relationships, reduced procurement cycle times, and enhanced visibility into procurement activities.