Duroshox · Finance / Transformation
Procure-to-Pay Transformation
Re-engineering the payment process from as-is to to-be.
Executive summary
Vendor payment turnaround time reduced by up to 60% through procure-to-pay process re-engineering.
Context
Vendor payments moved through a long, multi-step approval chain split between Finance and Purchase.
Problem
Improve vendor payment turnaround through a redesigned procure-to-pay process.
My role
I re-engineered the P2P process, mapping the as-is process and designing the to-be process.
Approach
- Mapped the as-is process with Finance and Purchase.
- Agreed the to-be process jointly and aligned both teams on one shared flow.
- Re-engineered procure-to-pay to improve vendor payment turnaround.
- Renegotiated software contracts.
Challenge & how I handled it
Finance and Purchase each owned part of the payment process and had different priorities, so the new process needed both teams on the same page.
I mapped the as-is process with both teams, agreed the to-be process jointly, and got Finance and Purchase aligned on one shared flow.
Artefact
Procure-to-pay · as-is / to-be
As-is · 9 steps
- PR raised
- PR approvalRemoved / consolidated
- PO createdRemoved / consolidated
- PO approvalRemoved / consolidated
- GRN
- Invoice received
- Manual 3-way matchRemoved / consolidated
- Multi-level payment approvalRemoved / consolidated
- Payment
To-be · 6 steps
- PR raised
- Rule-based PO approval
- GRN
- Invoice
- System 3-way match
- Payment run
Outcome
Vendor payment turnaround time reduced by up to 60%. Renegotiated software contracts, cutting software costs by 22%.
Tools used
- Process mapping (as-is / to-be)
- Excel
- SharePoint