Procure to Pay Software
Empower employees with intuitive procure to pay software (P2P) while taking control of your costs, improving compliance, reducing risk and driving better bottom-line results.
While it’s a cliché to promote procure to pay or eprocurement software as “consumer-like,” or built in the spirit of Amazon, to deliver a truly intuitive procure to pay experience that drives the business results you demand, an effective solution must do far more.
Xeeva provides procure to pay that embeds best practices and intelligence into our product while keeping that complexity transparent to the end-user – an Amazon-like experience but with cognitive power like IBM’s Watson – providing super smart advice all along the way. Xeeva P2P is pure cloud, and through use of our proprietary configurable SaaS technology, you can be up and running in days or weeks, not months – with the ability to scale up, down, left or right to meet the needs of your business.
And regardless of where you fit on the spectrum of centralized or decentralized procurement operations, a significant portion of your spend takes place in geographies or parts of the business where maintaining controls can be particularly challenging. Flexibility is key and if desired, our technology supports the ability to centrally define purchasing and compliance policies and seamless deploy them globally through our “intelligent cloud” – but we maintain the flexibility for local control as needed. With Xeeva P2P as the transactional backbone for all global indirect and MRO purchasing activity, we provide you with highly granular and real-time visibility into the fragmented spend coursing through the enterprise, increasing the managed spend per purchasing professional.
Adoption of a solution globally, which is complicated by language differences and non-US currencies is addressed head-on with Xeeva’s configurability for 18 languages and ability to denominate transactions in US and all foreign currencies.
Budget, Controls and Compliance
Beginning with budgeting, one of the most significant challenges for the procurement organization is the ability to translate the hard work of sourcing and procurement professionals into bottom-line savings. For example, a supplier negotiation resulting in a lower rate-per-hour, does not necessarily flow through to subsequent purchase orders from that supplier and therefore to the P&L. In this case combined with our Xeeva eInvoicing, suppliers can only invoice the rates and pricing they’ve contracted for in the system.
From a budget controls perspective, Xeeva P2P allows you to set budgets all the way down to the cost center and even project level. Monthly, quarterly or annual budgets can be loaded and updated via direct feeds from your system of record, or can be manually loaded depending on your current budget process. As spend occurs against a budget, consumption of that budget is updated. Not only is actual spend tracked but POs open against those budgets are accounted for in the solution and serve as a guide for overall budget compliance. As new requisitions are initiated, requestors and approvers along the approval chain are able to see in aggregate the total spend against a budget + open POs + pending requests. For example, individual IT, marketing or capital projects can be managed to a specific budget where actuals, open and pending POs are monitored accordingly. Additionally, projects can be assigned their own approval workflow to ensure project owners are aware of all project spending, or by providing a shorter workflow if needed to aid in expediting critical project buys.
With Xeeva’s catalog engine, you develop a robust master list of items used across your entire enterprise to minimize SKU duplication and increase the end-users’ experience of quickly locating the item they seek. Your employees locate approved items through the purchasing system to make requests – it’s at this point that appropriate intelligent controls help drive increased compliance to catalog-based spend, resulting in increased savings and reduced maverick purchases. Users have the option of searching your local or global catalogs – local catalogs become important for geographically dispersed locations or business units with specific indirect goods or MRO needs. Global catalogs give you access to the wider universe of company suppliers should you need to extend your search. If you choose, you can use Xeeva’s own Marketplace which provides users with an even more extensive universe of potential suppliers.
For goods or services that don’t appear in the catalog, users at a click can launch an intelligent requisition form that guides them through the request process. Forms are configured based on commodity type and gently standardize the flow and type of information necessary for buyers to take action. Material codes and cost center information are automatically assigned. Totally configurable pre-approvals reject out-of-bounds requests outright or accelerate the flow of requisitions. The completed intelligent form is routed for approval. Xeeva’s mobile applications facilitate requisition approvals and rejections. Use of standardized forms also enables the system to automate a search for similar items across catalogs and offer substitute suggestions. For truly non-catalog items, approved requests (whether pre-approved or manually approved) are sent to the appropriate buyer or multiple buyer’s queues to ensure the suggested vendor’s pricing is competitive, conduct an RFQ as appropriate, inspect to ensure no duplication in the catalog, approve or reject.
This easy approach to ordering non-catalog items helps control your spot buys, keeping those purchases under the control of the procurement organization while still meeting deadlines.
Approved requisitions are automatically converted to purchase orders and sent through the system in a paperless electronic format to accelerate commerce and assist your company’s green-initiatives. These transactions occur with the rigor of EDI but with the simplicity of the Web. The module can also be configured to set the number of required eRFXs based on requisition value, location or type of commodity. Standardization is important here too – enabling your buyers to review an apples-to-apples comparison of supplier responses. Xeeva P2P houses all quote activity for record-keeping and audit trail purposes.
Requestors see their history of purchases to simplify reorders, see their current spend and pending spend against budgets and have complete visibility into the status of their requests via their personal dashboard.
It’s not unusual for 20 – 40% of indirect purchases to occur as spot buys. At most companies, spot buying occurs with little procurement organization oversight or control. It means 20 – 40% of spend is taking place outside of the corporate catalog, often with unapproved vendors and usually without any negotiated prices. Spot buys take place as: one-time, emergency, low-dollar-value/low-complexity, unmanaged category, unique item buys and buys for items that can’t be fulfilled by incumbent suppliers.
Better control of spot buying starts with a better catalog, one that is as comprehensive as possible for the business. Control continues by putting the right process in place for requestors to search local, global and even our own Marketplace to determine if exact or similar items have already been sourced. Finally, spot buying is enhanced as items – previously not addressed through existing contracts – are then routed for immediate sourcing to buyers who can then add those items, in a controlled manner to the organization’s catalog.
Operational and Management Reporting
Many organizations lack the ability to quickly run detailed reports at a level of granularity that benefits the procurement team and budget owners with a need to land budgets on a dime. Most canned reports also don’t address the needs of functional or business owners, business unit or plant managers who continue to spend and identify new requirements without real-time knowledge of budget consumption. Management reporting in many companies is done on the side in spreadsheets, is often ad hoc, requires significant manual intervention to distill intelligence from the data and then doesn’t show the trends and trajectories that management craves. Sounds familiar?
Xeeva P2P includes robust, state-of-the-art, reporting capabilities that allow you to tightly monitor budgets and each step of the procure-to-pay process in real time. Our transactional reports provide inquiry capability into different types of transactions, e.g., requisitions, approvals, POs, receipts and invoices in various stages of their respective lifecycle. We also provide the ability to review each of the above relative to benchmark values in order to identify bottlenecks and areas for improvement. Periodically we provide value release reports that offer actionable recommendations on cost reduction opportunities to system users and that help identify areas for process improvements in procurement and sourcing operations.
Connectivity to your ERP Instances
It’s not unusual to have multiple ERP instances, often from different vendors. At some time your company may acquire others that operate on different systems. Cost of integration of those companies and systems into your technology footprint is time consuming and typically costly. Xeeva P2P is nimble enough to quickly integrate with most any ERP system or legacy system required allowing your procurement organization to comprehensively control spend across the existing or newly acquired business.
Reduce costs. Buying from pre-approved catalog items and reducing maverick spend results in an overall savings of two to five percent without lifting a thumb. Additional savings come from productivity improvements primarily in the area of processing costs across the requisition, P.O. creation and order process.
Realize bottom-line savings. By managing to budgets more effectively, avoiding cost over runs before they occur and by providing needed project control and visibility to project managers, finance, procurement and executives, the organization is better positioned to manage exactly to the required budgets or quickly adjust spending to meet new economic realities through transactional and management reporting dashboards.
Stop savings leakage. For example, newly negotiated contracted rates with a 3rd party service provider would be standardized in your catalog, requestors could only select from the pre-approved rates available. The 3rd party service provider could only invoice you based on those rates. Closing this loop is one of the most challenging issues for procurement. Secure another rate reduction from the service provide – change the catalog value and the savings leakage is prevented.
Improve customer service. Employees don’t set out to break the rules by spending over their budget or buying from unapproved suppliers – but that’s why procurement has to put rules in place – the same rules that often make purchasing the focus of a lot of frustration.
Xeeva P2P can unlock and clearly put on display to all employees the value your procurement organization offers – providing the visibility they need, the speed they require and the ease of use that they’ll adopt.
Reduce maverick spend. Maverick spending usually results in your users paying a premium for a good or service. Having an intuitive P2P system that users embrace and with an accurate and comprehensive catalog helps reduce maverick purchasing. Having a simplified request process that’s speedy and efficient like Xeeva’s takes that one step further, curtailing this type of purchasing by as much as 50% without having to take Draconian actions against your employees.
Curtail the long tail of suppliers. We come at this in two ways. First, during the go-live process, we use our [Imperfect Data] technology to normalize, categorize and standardize your existing catalogs. This identifies opportunities for vendor consolidation and strategic sourcing. Second, after go-live, our process for reviewing, approving and managing new requisitions helps ensure that requests for non-catalog items are not redundant.
Create leverage for the procurement team. For most of our clients, indirect procurement teams aren’t getting any larger and resources are heavily burdened with significant cost reduction targets and large commodity portfolios to manage – but still with a requirement to maintain high service levels for internal customers. We hear from folks that they are overwhelmed with tactical execution, often on low-value tasks, e.g., reconciliations and chasing down approvals rather than spending time on strategic sourcing, vendor negotiations and commodity strategy. Xeeva P2P is a force multiplier. Automation of previously manual activities and interventions, e.g., transforming spot buys and transactional buying activities into efficient and controlled catalog driven processes, frees up time for the procurement team to become progressively more strategic in their outlook — and their actions.
Improve business processes. Our procure to pay software is based on proven industry best practices that we ourselves developed over the last 15 years as thought leaders in procurement services. These practices are embedded into the tool’s fundamental transaction flows. As a result deployment of our P2P technology serves as a catalyst for a purchasing transformation. Because we have built best practice methodologies into the technology itself, very little time is required to map out “as-is” business processes and to identify areas to lean out.
Reduce spot buys. It’s not unusual for 20 – 40% of indirect purchases to occur as spot buys. At most companies, spot buying occurs with little procurement organization oversight or control. It means 20 – 40% of spend is taking place outside of the corporate catalog. Better control of spot buying starts with a better catalog, one that is as comprehensive as possible for the business. Control continues by putting the right process in place for requestors to search local, global and even our own Marketplace to determine if exact or similar items have already been sourced. Finally, spot buying is enhanced as items – previously not addressed through existing contracts — are then routed for immediate sourcing to buyers who can then add those items, in a controlled manner to the organization’s catalog.