Every organization partakes in Purchase to Pay (P2P). It enables businesses to focus on their area of expertise and purchase, rather than produce, additional business inputs.
From simple purchases like office supplies to complex procurement negotiations like data access, the P2P cycle touches multiple departments and systems. The nature of such a complex and department-jumping process makes P2P ripe for process mining.
Minit Process Mining helped a global telco company do just that — apply Process Mining to P2P to realize over $5M in annual savings. We helped this client deeply analyze their cumbersome P2P process in order to eliminate costly rework, identify stages for automation and optimize working capital.
Data Analysis Focus
- Process compliance: Purchase Order (PO) without purchase request, invoice paid before approval, invoice validated after payment
- Process efficiency: canceled invoices or POs, PO changes, invoice changes, POs closed without action
- Process automation: POs closed manually, manually approved invoices, low value invoices
- Optimize working capital: early payments, late payments, invoice creation after goods received
Return On Investment
- Process improvement rework elimination, change avoidance, PO bundling; annual savings ~$3M
- Process efficiency elimination of no action POs; annual savings ~$52K
- Process automation PO closed manually, low-value invoices automation; annual savings ~$2.3M
- Optimize working capital early payments, late payments; annual savings ~$2K