Procure to Pay Process (P2P) Calculation Explained (Urdu/Hindi)

In this short video, I am going to explain to user how to measure performance of different departments with P2P.

Though this is a very small video – just few minutes of watch, it took me dozen of hour to research the topic and present only relevant and precise information, so please don’t forget to like the video and press subscribe button.

Procure to pay is a very important KPI used by many organizations. It is typically measured in number of days the supplier is paid for goods delivered. It is most widely quoted as a KPI for procurement but this measure can be used to see performance of other departments that contribute to this kpi.

Usually the procurement process involves working with accounts and finance, warehousing, technical team and supplier. Delay from any of these departments can contribute to a longer procure to pay cycle.
We have used percentage to find contribution of each department to the P2P figure.

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Possible Reasons for Delay
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• Stores: Late generation of requisition or indent that is used by Procurement to share requirements with suppliers
• Procurement: Delay in floating request for quotation (RFQ) and finalizing order winners
• Suppliers : Irresponsive suppliers causes delay in delivery or have capacity issues.
• Technical Team : Takes extra time to decide on quality and inspection of goods.
• Stores : Late start of approval documentation process
• Finance and Accounts : Delay in bills processing and lack of finance to pay to supplier

Let’s watch!

#excel #supplychain #procurement #warehouse #performance

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