Technology innovations have promised to bring positive disruptions to the procure to pay process (P2P). P2P is already a seamless process enabled by technology, speeding up the process of purchasing from the point of order, to payment entailing the full cycle of procurement. A solution which has been designed to gain a better understanding of the full process; in recent years businesses are focused on how to decrease overall costs, free up cashflow and improve performance to help make better financial decisions. But, what will be the biggest procure to pay trends in 2023?
Poll results
In our most recent LinkedIn poll, we asked our social media followers what they thought the biggest procure to pay (P2P) trend would be in 2023?
Procure to Pay trends: What we found
Increased automation
44% of respondents said increased automation would be one of the biggest procure to pay trends in 2023 making it the highest response of the poll.
As procurement teams become more strategic they will rely on automation solutions to avoid spending time on repetitive or admin tasks. Organisations that have already embraced automation can use capabilities in advanced processes, focusing on strategic tasks to future proof operations.
According to a recent Gartner survey, 82% of CFOs intended to increase their digital investment in 2021. However, many weren’t clear on what digital business meant and the technology investment needed to have a significant impact. Therefore, whilst a large number of respondents in our poll said increased automation would be the biggest procure to pay trend, it’s important for these businesses to understand the benefits this will bring to their business before investing in new solutions.
Use of analytics
33% of respondents said use of analytics would be the biggest procure to pay trend in 2023. Making it the second highest response from this poll.
The need for data analytics has increased over the last 3 years as businesses try to drive cost control. The growing need for transparency has persuaded procurement and finance professionals to deploy advanced analytics to gain access to critical information about suppliers, purchases, spend, and cash flow. Gartner expects that by 2023, augmented data management will reduce reliance on financial analysts for repetitive and routine data management tasks, freeing up 20% of their time. With advanced information and analytics gathered from the systems and external data sources, organisations may even avoid supply chain risk.
Building resilience
11% of respondents selected building resilience as the largest procure to pay trend for 2023. It was the joint lowest response however, some respondents still thought it would impact the P2P process this year.
Strong, resilient supply chains mean that companies are able to handle shocks such as delayed deliveries and increased costs well. For instance, by having suppliers on standby, a company can continue production even when the primary supplier comes up short. Such things as locking in prices to create predictability and give customers more certainty on the prices of final products. Businesses face the unique challenge of coming up with innovative ways to make their supply chains more resilient in a rapidly changing operating environment.
Other
Finally, 11% of respondents selected other.
While ‘other’ could mean several different procure to pay trends, one could be the possibility of increased risk management practises. Supplier management is a risk that can no longer be an afterthought. It is the major crucial component of the management strategy and process related to business continuity. The organisations need to understand how diverse, ethically, and sustainably a supplier is and what operational risk suppliers can cause.
Learn more about our Procure to Pay solutions.
More information
B2BE’s experience in the supply chain sector allows our customers to build, expand and adapt successfully, enabling greater effectiveness. To engage with B2BE and offer feedback on what matters most to you and your business, make sure to follow us on LinkedIn and across social media. You can also vote in our latest LinkedIn poll. If you’d like to discuss your future supply chain strategy, get in touch with us.