
Purchase-To-Pay (P2P) Centralisation & Process Optimisation
CHALLENGES
● Country with 33 pools of P2P run by team of 200 FTE
● Peaks of procurement activities in the year made it more difficult to balance workload and required staff
● ‘Grey areas’ of lines of approval and roles and responsibilities were adding ‘waiting’ time
ACTIONS TAKEN
● Centralised P2P operations from 33 pools to a single organisation
● Run quantitative analysis and procurement simulation model to size the necessary FTE required during year
● Leaned P2P processes, clarified roles and responsibilities, including lines of approval, and internal service levels
RESULTS
● Reduction of 50% of FTEs, from 200 to 100 with a net bottom-line impact of USD 4.0 Mln per annum
● Increase in P2P productivity by 80% in two months after implementation of improved process
● Increase in on-time payments rate from 79.0% to 93.1% in three months after P2P engagement