Sometimes it might make more sense for a company to decentralize procurement. This can lead to a lack of synchronization across purchasing activity, which can exacerbate procurement pain points such as lack of visibility and control, as well as challenges with data control, company security, and regulatory/audit compliance. However, 27 percent of survey respondents still reported having decentralized purchasing processes. Or “Which statement best describes your invoice receipt and payment process?”Ĭentralized procurement processes usually mean that there is one main Procurement department responsible for all purchasing across an organization, regardless of different company locations or the structure of business divisions. “How would you best describe your current procurement process structure?”
Most Procurement and AP Processes Are Centralized Figure 1Ĭentralization of Procurement Processes Figure 2 Fiftysix percent of procurement teams reported centralized purchasing processes throughout the company, while 63 percent of AP teams also used centralized invoice management. The current state of centralization in both procurement and AP are similar, as both departments report mostly centralized processes, see Figures 1 and 2. In order to explore automation trends within procurement and accounting processes, Levvel Research recently surveyed more than 300 North American organizations. Research Overview: Trends in Procurement, Finance, and AP
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It explores the benefits of automated, integrated, cloud-based purchasing, payables, and payments technologies, as well as how to create successful synergy in the backoffice with process change. This guide uses Levvel Research’s survey data to delve into the current state of procurement, finance, and accounting, as well as automation trends in each department. This integrated approach helps in managing spend, as well increasing process efficiency. Streamlining back-office spend operations in a unified way, with cloud-based, integrated P2P software, renders a transformed process that adds new value to an organization. Even when organizations report open and collaborative relationships between their teams, there is still a significant lack of visibility as separate teams manage their financial and supplier data across respective legacy systems.Ĭreating synergy across procurement, Accounts Payable (AP), finance, and even IT, means implementing a unified system that creates a whole that is greater than the sum of its parts. While these compartmentalized initiatives may yield tangible benefits, they are often only short-term improvements, and do not always give organizations the chance to reach their maximum potential in P2P operations.
It is common for procurement and payables teams to operate completely independently from each other, each with their own centralized processes and sometimes adopting seperate, point solutions to automate specific P2P stages rather than one tool for the entire P2P lifecycle. Though procurement, accounts payable (AP), and finance groups all strive to achieve these common goals, they are often relatively siloed in terms of efforts to improve process inefficiencies and implement automation technology. Managing costs and increasing savings in Procure-to-Pay (P2P) are prevalent concerns shared by organizations throughout the world.
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