Best practice companies develop technology strategies that detail how technology implementations and enhancements can enable end-to-end automation of the company’s Procure-to-Pay operation. Technology strategies can include the following key components:
- Vision for the current and future Procure-to-Pay platform, including integration with new technologies, automation and potential outsourcing opportunities
- Short- and long-term Procure-to-Pay technology initiatives with alignment to specific Procure-to-Pay goals
- Identification of benefits to be achieved through the technology initiatives
- Framework for selection of technology partners and suppliers
Organizations prioritize their automation initiatives and ensure maximum alignment with their goals. These organizations also typically work closely with key stakeholders in senior management, IT, Procurement and Accounts Payable to ensure the initiatives have the appropriate level of support and resource commitments within the organization. Study participants indicated that the implementation of a commercial card program was a crucial component of their long-term technology automation strategy. Often, the success of these programs was used to develop business cases for further technology automation and integration within the Procure-to-Pay process as well as commercial card program expansion.
Benefits
- Cost Savings and Process Efficiency – Effective planning and development of an automation strategy increases the efficiency of technology implementations and maximizes the effective use of resources
- Supplier Management – Short- and long-term strategies provide guidelines for the selection of technology suppliers, including capabilities and service-level expectations
- User Satisfaction – Short- and long-term strategies that align with a company’s Procure-to-Pay strategy tend to also align with end-user needs, increasing their support of technology initiatives