Review of Procure to Pay Process – Digitization admin January 11, 2022
Review of Procure to Pay Process – Digitization

Customer :

A Tobacco Major in India.

Business Requirement :

The company is a one of the major cigarette manufacturers in India.

Review the Procure to Pay process in all their Manufacturing units.

Review their ERP with respect to Procure to Pay.

Review their Standard Operating Procedures with respect to Procure to Pay.

Report the deviations and suggest improvements.

Identified Process Challenges :

Understanding of the various phases of the Procurement lifecycle.

Difference rate for same Materials / services across the Vendors.

Inaccurate Data in Masters leading to Duplicate Payments.

Lack of Documentations.

Ineffective utilization of ERP functionalities.

Approach and Solution Design :

Conduct bottom-top approach of process understanding across user profiles and modelled the entire flow of procurement lifecycle.

Performed detailed analysis on rate card variance for same materials / services with different rates and modelled the same for cost optimization

Key data fields to made mandatory at time of creation / up-dation of masters and recommended validations for each field.

System of digital archival by way of Transactional flow wise documentation trail suggested for development.

Business process wise ERP functionality provisions were mapped and identified unutilized functionalities to enable in future.

Business Benefit and Result :

Delivered a comprehensive risk registers along with the mitigation strategies for Procure to Pay.

Identified the inaccuracies in the Master data and ensured sanitization of the Masters.

Implemented an effective Purchase plan resulting in reduced Purchase and Transportation costs.

Automated the Delegation of Authority Matrix in ERP resulting in effective monitoring of Procurement.

Designed a comprehensive Procurement MIS which helps the organization make effective decisions.