p2p(Purchase to pay) often has larger savings than sourcing
(Source to pay) is not normally a joined up process this often means that whilst procurement have negotiated great deals for organisations in both public and private sector the rest of the organisation are not realising either the savings or the strategic benefit.
p2p (Purchase to pay) - Start with Spend Analysis
shows that the public sector is only using the contracts that it has let about 30% of the time with 70% of spend off contract, and the situation is similar for private sector indirect spend, so having a good p2p
process is as important as sourcing to realise the benefits from improved sourcing.
On the assumption that reasonable prices have been negotiated through sourcing. Typical p2p savings are as follows.
p2p Benefits from £ 100 billion of SpendInsight
TOTAL (14.1% -39%)
- (0.1%-0.5%) Duplicate Payments
- (2.5%-8.5%) savings on incorrect orders
- (6.5%-15%) no price agreed on order
- (5%-15%) improved terms from suppliers for etrading
p2p(Purchase to pay) Guaranteed Savings from SpendInsight
@UK PLC Guarantees that a Spend Analysis will show significant potential savings, and provide the immediate savings to fund a full p2p eprocurement project.