Managed Services: A Guide To Implementing A Purchase To Pay Policy
Purchase To Pay Policy
Coordinating purchase orders, invoices, payments and associated workflows has become increasingly complex for many organizations. Enterprises must manage the costs associated with procurement and ensure compliance with external regulations, especially those related to finance and public transparency. To control this vast array of activities, organizations are turning to Managed Services for automated and secure solutions for their purchase to pay (P2P) policy.
This guide provides an overview of Managed Services and explores the nuts and bolts of establishing P2P policy. The rationale and preconditions for implementing P2P policy are also examined. Finally, the comprehensive approach to selecting an appropriate Managed Service provider is demonstrated.
What Are Managed Services?
Managed Services provide holistic approach to controlling and automating organizational processes, leveraging software as service. This type of system offers access to, and maintenance of, secure applications and databases. This relieves company from having to deploy and manage the infrastructure. Such applications, available via the cloud, include payroll, time management and financial services, among others. Those services have strong dependency on the availability of reliable data. Hence, the concept of Managed Services to ensure reliable, secure data flows over the long term.
Reasons for Implementing Purchase to Pay Policy
Organizations require comprehensive P2P policy to improve the efficiency and accuracy of financial processes and simplify complex procurement procedures. The primary objectives of P2P policy are to streamline and automate the workflow, increase visibility, reduce fraud, improve accuracy and control costs.
In addition, an effective P2P policy helps organizations track purchases to ensure compliance with government regulations, thereby avoiding fraud penalty fees and other penalties. P2P policy also alleviates the stress on internal resources and systems by providing secure, automated solution.
Preconditions for Establishing Purchase to Pay Policy
Establishing successful P2P policy requires organizations to have complete and accurate picture of their current financial operations, including inventory and cost information as well as supplier data. The organization must also have clearly defined budgetary model and an established vendor network.
In addition, an organization must have system in place to track and control purchases at all times. The organizationshould understand and develop strategy for managing the entire purchasing process, including availability and field of spend, vendor management and pricing and timeline for payment.
Selecting Managed Services Provider
When selecting Managed Service provider, extensive research is valuable. It is best to consider providers? competitive offerings and evaluate their capabilities from the enterprise-level perspective. Furthermore, organizations should assess the provider?s technical prowess, customerservice skills, credentials, user experience and most importantly, the degree of data security offered.
By looking beyond the core services and capabilities of various Managed Service providers, organizations can ensure the successful implementation of their P2P policy and create secure, efficient and economical financial system.
Conclusion
Organizations can benefit immensely by implementing rigorous P2P policy and leveraging managed services to administer it. The right Managed Service provider should have proven experience in the field, proven scalability and an established track record of both customer and technical excellence. Following the guidance offered in this guide will enable organizations to take comprehensive approach towards selecting Managed Service provider and implementing purchase to pay policy that meets their specific needs.
