Majority of Companies Will Make Most of Their Payments Electronically Within 3 years
If your company is not already planning for this transition, it may be time to begin researching the solutions that are available, as well as the costs and benefits of adopting an electronic solution for both procurement and payables functions.
This whitepaper, prepared from the March 2013 U.S. Bank/Institute of Financial Operations (IFO) Procure-to-Pay survey, indicates that a majority of companies that responded expect that in three years or less their organizations will make most of their payments to suppliers electronically.
The below excerpt describes how procure-to-pay (P2P) systems work and why they’re important.
Procure-to-pay systems integrate an organization’s purchasing and AP departments, providing buying organizations with control and visibility over the entire life cycle of a transaction. That makes it simple to follow transactions from the time an item is ordered until the final payment is made. Companies that centralize their purchasing and AP functions can find automated P2P systems particularly valuable. Today, more than half (57 percent) of respondents report that their procurement function is fully centralized. More than three-quarters (82 percent) have centralized their payables function.
The report, available at the above link, was prepared by The Institute of Financial Operations and sponsored by U.S. Bank.
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