There are many ways to slice and dice the P2P process. ScottMadden has found it helpful to think in terms of upstream processes—the world of sourcing and purchasing—and downstream processes—the world of accounts payable.
“Upstream P2P” and “downstream P2P” (see graphic below) are, in fact, one continuous process beginning with a need and ending with a payment to a supplier. In most large companies, and in nearly all utilities, this process has evolved to where the upstream and downstream segments of this process are currently managed by different organizations. Consequently, the two organizations blame the other for their day-to-day issues, and over time, periodic disconnects occur at key points of integration which drive re-work, inefficiency, frustration, and higher internal costs.
Fixing these disconnects requires re-integrating the upstream with the downstream segments in one seamless, continuous process. The benefits of improving the integration between these two segments of the P2P process are displayed in the graphic below.
ScottMadden believes that establishing the right organizational structure is an essential starting point for companies that want to integrate P2P. The right organization structure creates a framework for supporting subsequent process changes. For more information on how to enable or enhance P2P integration, please contact us.
Sussex Economic Advisors is now part of ScottMadden. We invite you to learn more about our expanded firm. Please use the Contact Us form to request additional information.