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How to successfully implement a Procure-to-Pay digital solution? KPMG has 8 tips for you

Procure-to-Pay digital solution? 8 tips for you

Initiating the digitization of your P2P process comes with a lot of questions and uncertainties. KPMG provides 8 tips to ensure a successfull implementation.

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While more and more organizations are already implementing Procure-to-Pay (hereafter 'P2P') solutions, it is not always clear for them how they could ensure a successful transformation and realize predefined goals. The significant investment in the new solution in combination with the required effort from the business to embed change make organizations doubt on where to start. Indeed, the implementation of a P2P software solution requires substantial time and effort and will lighting up hidden and inefficient processes which will be challenging. Organizations want to use the momentum to efficiently adopt to the new system and strive for a 'first-time right'. What do successful organizations do differently from other organizations in their implementations? Our Procurement Advisory team has summarized eight actionable tips for you based on our practical experiences.

  1. Keep limited number of integrations
  2. Start showing the system to user as soon as possible, don't wait until it's perfect (it's never perfect)
  3. Keep the buying channels design simple, standardized and flexible
  4. Be bold and honest to encourage more single POs creation
  5. Give user more access in the beginning
  6. Avoid (notification) email overload
  7. Don't overkill the non-preferred supplier
  8. Don't lose sight of your company culture

In the coming months, we will publish our learning and recommendation for each tip bi-weekly based on real-life cases. Please follow us to ensure that you receive the latest updates!

Can everything be interfaced? Yes! Do you want everything to be interfaced? No!

Typically during selection and negotiation phases of S2P systems, dozens of scenarios and use cases are brought to the table. Due to time constraints, the starting point for discussions with vendors is the current IT landscape rather than a proper understanding of the underlying business requirements. It is often not realized, however, that the current IT landscape is a result of years of evolvement and technical constraints rather than of a set of deliberate decisions. Therefore, the interface diagram regularly looks more like a bowl of spaghetti than a structured and solid IT landscape.

Of course interfaces contribute to a more smooth operation of the system and increased user adoption. Data objects like Suppliers, Users, Chart of Account Elements, Ok2Pay Invoices and Payment Confirmations are unavoidable for realizing increased efficiency and accuracy. However, the trick is to limit the number of single-purpose interfaces. Before interfacing that 20 years old legacy Facility Management system, one should consider to utilize functionality of the S2P system and re-design current processes. A different example: an interface with the catalog of a single supplier might become redundant if you start introducing 'Replenishment' as a replacement for 'Order from Catalog'.

You might be willing to limit the number of interfaces, but simultaneously have to deal with business stakeholders claiming the interface is a 'must' to at least not downgrade the current way of working. Therefore, we recommend to quantify the costs of developing and maintaining an interface together with your IT department. Offset these costs to the additional costs for re-designing the process and additional/reduced time spent by an end user in the new process. This rationalizes the situation and prevents high-level discussion based on emotion and gut-feeling.

More information? Please do not hesitate to contact Raymon van der Maarel, Maurits Kuiper and Tsai-Wei Lee.

© 2020 KPMG N.V., registered with the trade register in the Netherlands under number 34153857, is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ('KPMG International'), a Swiss entity. All rights reserved. KPMG International Cooperative ('KPMG International') is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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