In today’s competitive business landscape, efficiency is paramount. A well-optimized Procure-to-Pay (P2P) process, also known as Accounts Payable (AP), is critical for profitability and resilience. However, challenges such as delayed payments and reliance on manual processes hinder progress, creating inefficiencies that ripple across the supply chain.
In an interview with Titilope Tosin Adewale, a P2P transformation leader, she shared actionable insights on how companies can streamline procurement and payment cycles for better outcomes.
The P2P process spans every step from procurement to payment, including supplier selection, purchase orders, receiving goods, and processing invoices. Titilope explained that optimizing this cycle is not just a financial concern but a strategic imperative.
“The importance of timely and accurate payment processing cannot be overstated,” she said. “It’s the backbone of strong supplier relationships, operational efficiency, and financial health. But P2P issues don’t just affect AP—they impact the entire supply chain, and consequentially, the company’s profits and product delivery. For small companies, like freight providers, payments are an even bigger challenge. The lack of standardized invoicing methods and processes often makes unification via technology cumbersome.”
P2P inefficiencies, if left unaddressed, can disrupt workflows, damage supplier relationships, and reduce profitability.
Titilope emphasized that effective AP transformation begins with a clear understanding of the current system. “Transformation isn’t just about introducing new technology,” she explained. “You must start with process mapping—mapping the end-to-end P2P cycle to identify inefficiencies and uncover opportunities for improvement. Only then can process optimization or the adoption of new technology be effectively implemented.”
This foundational step ensures companies fix the root causes of inefficiencies rather than automate flawed processes.
Titilope identified several critical challenges facing companies in their P2P cycles. Delayed payments remain a significant issue, often stemming from lengthy invoice approvals and uncoordinated procurement and finance systems. This creates bottlenecks that harm supplier relationships and disrupt workflows. Meanwhile, the reliance on manual processes for invoice validation and payment approvals introduces errors and inefficiencies, wasting valuable time and resources. Smaller companies, particularly freight providers, face unique struggles due to non-standardized invoicing methods, which complicate technological integration and slow down the payment process. Resistance to change within organizations further hampers progress, as implementing new systems requires a cultural shift and buy-in from employees across departments.
Despite these challenges, opportunities abound for businesses willing to embrace transformation. Automation tools like robotic process automation (RPA) and enterprise resource planning (ERP) systems offer powerful solutions to streamline invoice validation, approval workflows, and payment processes. These tools not only reduce reliance on manual intervention but also ensure timely payments, which strengthen supplier trust and unlock early payment discounts. Titilope noted that automating invoice handling is particularly crucial, emphasizing, “No one should have to deal with the analysis of individual invoices in today’s world. Optimization tools should be engaged to do this for efficiency purposes.”
Standardized invoicing practices can also significantly enhance the effectiveness of P2P systems. By introducing uniform formats and integrating supplier portals, businesses can reduce delays and simplify automation efforts. Moreover, leveraging data-driven insights through Key Performance Indicators (KPIs) like invoice cycle time and payment accuracy allows companies to continuously monitor and refine their P2P performance.
Best practices, according to Titilope, include fostering collaboration among internal stakeholders and suppliers. Open communication ensures alignment during system transitions, while change management programs and employee training help build support for new processes. She emphasized that successful transformations require a holistic approach that addresses both technological and human factors.
Titilope shared an example of a company that overcame significant AP challenges by starting with a thorough review of its processes. The company’s reliance on manual workflows led to delayed payments and strained supplier relationships. By conducting a detailed process mapping exercise, the organization identified inefficiencies and implemented an automated system.
The results were transformative. The company reduced its invoice processing time by 40%, achieved 98% on-time payments, and eliminated manual errors through automated invoice matching. Additionally, the streamlined system allowed the business to scale operations seamlessly, handling a 30% increase in transaction volume without additional strain.
“The transformation wasn’t just about saving time—it was about creating a more agile and resilient AP system,” Titilope said.
As the interview concluded, Titilope reflected on the broader implications of AP optimization. “Optimizing P2P isn’t just about fixing inefficiencies—it’s about building a system that supports growth and innovation,” she said.
Her insights underscore the importance of process mapping, automation, and collaboration in creating a modern AP system. For companies across industries, the message is clear: investing in a streamlined P2P process is not just a matter of operational necessity but a strategic opportunity to drive profitability and long-term success.
