Streamlining the Procure to Pay Process
A Publicly Traded, MLP in the Midstream Industry Experiences Several Challenges in its Procure to Pay (P2P) Process.
Our client was facing several challenges in its Procure to Pay (P2P) process, leading to a lack of internal controls, segregation of duties issues, and slow payments to suppliers, causing business disruption.
Our experts successfully designed a robust P2P process that addressed our client’s challenges and resulted in significant cost savings and ensured SOX compliance.
Read on for more information on how we successfully delivered a positive outcome for our client.
Our client, a publicly traded MLP in the midstream industry, was facing several challenges in its Procure to Pay (P2P) process, leading to a lack of internal controls, segregation of duties issues, and slow payments to suppliers, causing business disruption. Our client was struggling with nine different business units, each using manual and non-standard processes, resulting in poor visibility to spend and outstanding payables. There were opportunities to reduce spend with strategic procurement, but the lack of a robust P2P process hindered our client’s ability to achieve this goal.
They needed help designing a robust Procure to Pay Process creating efficiencies through automation, improving internal controls and enabling cost reduction through strategic procurement and supplier management.
Our firm designed a robust P2P process that could create efficiencies through automation, improve internal controls, and enable cost reduction through strategic procurement and supplier management. We designed a comprehensive solution that addressed the challenges faced by the company.
Cost Savings: Our solution resulted in cost savings in excess of $13 million per year for the company. The streamlined P2P process enabled the company to reduce costs through strategic procurement and supplier management, resulting in significant cost savings.
SOX Compliance: Our solution also ensured SOX compliance for the company. The improved internal controls and segregation of duties addressed the compliance issues faced by the company and provided a strong foundation for future compliance efforts.
Current State Assessment (People, Process, Technology):
Our team reviewed and documented the current state environment, benchmarked against best practices, identified gaps, and prioritized key opportunities for improvement. This enabled us to gain a clear understanding of the company’s current P2P process and identify areas for improvement.
Spend Analysis and Opportunity Assessment:
We analyzed the company’s AP data, segmented spend by category and supplier, and identified opportunities to reduce costs by aggregating spend, consolidating suppliers, and leveraging competitive markets. We then launched sourcing events in high opportunity/high priority spend categories.
P2P Design:
Our team defined P2P policies, processes, organization, and KPIs, developed technology requirements, and selected a P2P workflow tool. We developed and launched a P2P implementation plan and a three-year strategic roadmap to ensure a successful implementation.
Standout Points:
Cost Savings: Our solution resulted in cost savings in excess of $13 million per year for the company. The streamlined P2P process enabled the company to reduce costs through strategic procurement and supplier management, resulting in significant cost savings.
SOX Compliance: Our solution also ensured SOX compliance for the company. The improved internal controls and segregation of duties addressed the compliance issues faced by the company and provided a strong foundation for future compliance efforts.
In conclusion, our professional services firm successfully designed a robust P2P process that addressed the challenges faced by a publicly traded MLP in the midstream industry. Our solution resulted in significant cost savings and ensured SOX compliance for the company.
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