The increased need for process streamlining in the business, increasing strategic developments such as partnerships and agreements are key factors contributing to high CAGR of Procure to Pay Software Market during forecast period.
Because the manufacturers realize the value of P2P digital transformation, there is a forecast of high growth of Procure To Pay Software during the next 5 years.
According to researchandmarket.com , the Global Procure To Pay Software Market size is forecast to reach USD 9.89 Billion in 2027 from USD 5.38 Billion in 2019, delivering a CAGR of 7.6%.
Making the procurement process digital with procure-to-pay software solutions can strengthen compliance and control among vendors, buyers, contracts, regulations clause and accounts payable.
P2P helps organizations to buy from preferred suppliers without the manual paperwork, spreadsheet and process automation at negotiated prices. With procure-to-pay software, we can have the below benefits like
- Streamlining procurement processes and helps bring in sourcing “Best Practices”
- Gaining insights through spend analysis- Catalog Streamline maintenance, saving time and freeing up resources.
- Enhancing vendor collaboration and competitiveness
- Reducing Costs and Direct Spends which can improve global spend
- Consolidating most of manual accounts processes to reduce errors by Improving workflow automation.
- Driving the savings to the bottom line to maximize the value of sourcing negotiations
Using an automated P2P solution would ensure that both buyers and suppliers can obtain real-time data in order to make accurate and informed decisions. Having an end-to-end visibility regarding the purchase orders, invoices and other receipts will ensure that buyers and vendors are working with synergy. Through the supplier portal, suppliers can have clear visibility about their payment status in order to plan.
P2P software offerings are mostly in the form of blended solutions or single suite. There are many products in the market today which helps customers and drive value. Some are-SAP Ariba, Coupa, Oracle Procurement Zycus etc.
Infosys Contribution in the P2P supply chain Space
Infosys has developed Center of Excellence for Ariba and COUPA. These two are one of the most widely used software’s. In the area of manufacturing, they are bringing value to clients by bringing better visibility in the invoicing process, spending, savings and upgrading the processes by streamlining the complex ERP environment.
Snapshot of customer testimonials in the manufacturing domain
1.Bilfinger SE a civil and industrial construction organization adapted COUPA to eliminate multiple e-banking systems which were used to silos which further created complex process to harmonize data. After migration, there was a reduction of 30% in processing costs and 15% in Bank fee.
2.Kennametal a tooling and industrial materials company selected Ariba to shift and transform their business from tactical sourcing to strategic sourcing. They achieved touchless procurement process by bringing >80% POs and invoices processed with human intervention.
3. One of the largest procurement transformations in the world covering 100$B USD of annual spend
Infosys is replacing Daimler’s Global Procurement System, GLOBUS handling almost 99% of Daimler’s purchase volume (€100 Billion +). with SAP SRM, Fiori, S4HANA (Sourcing & Procurement), SAP PO and a 3rd Party Contract Management System from iCertis. The complete ecosystem is to be hosted on Microsoft Azure
- Future Proofing of the Procurement System with technology upgrade of its backbone
- Spend visibility and optimization across the regions
- Personalization, Decision Support, Mobility, Upgrade to S4H, Automation and Productivity
- Productivity Apps – Cognitive, predictive analytics, real time cost calculation
- Big data ready, mobile first
The process of P2P has encountered many existing challenges over the last 10 years, such as
Organizations are yet to achieve the top metrics kind of Best in class, and many do not even have access to the accurate data to quantify or measure the same
Most of the procurement users face the regular key challenges like poor spend categorization, lack of market intelligence, incomplete & delayed spend visibility, contracts not linked to PO or a PR.
To address the challenges, Infosys Edgeverve a wholly owned subsidiary of Infosys which is a global leader in AI and Automation, product, and platform company offers ProcureEdge, an enterprise-grade, AI-powered product designed to augment the performance of various stakeholders in the procurement teams.
In addition to being an enterprise grade cloud native end to end procurement platform, the biggest value differentiation is the ability of procure edge spend analytics to integrate seamlessly into existing procurement system and provide insights in short time frame ( within weeks)
ProcureEdge addresses the stakeholder( procurement manager, category manager or a category analyst) needs and enables them to contribute towards broader procurement goals of cost optimization, risk moderation, compliance, supplier performance and more.
It also has intuitive user journeys and gives improvement opportunities with connections and links to your core procurement systems.
Following are the benefits of Carrier by leveraging Procure Edge complementing Ariba:
- 10-12% Impact in Vendor Normalization
- 40-50% Enhanced Visibility
- 50-60% Productivity Gain
- 6-8%% Savings Opportunity
- Differentiated AI Offerings