Procurement Academy

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Assessment . Development Plans . E-learning . Coaching

eProcurement
Course notes
High Impact: E-Learning
Content
1. Definitions
2. Targets
3. P2P Process
4. eProcurement tools

1. Definitions
The order and delivery step plus the receipt and payment step are also called operational
procurement. The operational procurement process is often also called the P2P process.

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The P2P process consists of all tasks that convert the requests from internal stakeholders
into purchase orders, which are sent to suppliers. Once the order is received the payment of
the invoice can take place.

The operational buyer’s role is to:

• Manage the P2P process;
• Maintain data, like coding additional items in the ERP system;
• Manage non-compliance issues, like the issue with Main-Tube;
• Support inventory management activities, such as reducing stock levels, which are
led by the logistics department.
• Report on key figures, like the number of non-compliant POs.

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2. Targets
The key targets for operational procurement staff are to increase compliance and to improve
operational efficiency.

Process compliance targets ensure that stakeholders comply with the company processes.

Contract compliance targets that orders only go to those suppliers that have a valid contract
in place.

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When stakeholders make purchases outside negotiated conditions, a “maverick buy” occurs.

Policy compliance targets to make sure stakeholders comply with the company policy.

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3. P2P Process

The P2P process can be split into two main sections: Creation of the requisition and PO
management.

There are 3 types of flows that lead to the generation of a requisition: production-related,
indirect stock items and indirect items without any stock management.

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Automatically placed orders take microseconds to transform a request into a PO whereas
manually placed orders may take up to 3 weeks.

4. eProcurement Tools
eProcurement is a cloud-based technology that allows an organization to add supplier
information to its databases.

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A cluster, or group, of items coded by the supplier is also called a catalogue.

Integrating these catalogues into our systems would create many additional coded items
with little effort.

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A requisition gets created. The requisition then goes through the designed workflow for
approval.

Using an eCatalogue can reduce the effort required to create and maintain coded articles.

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There are several benefits of implementing an eProcurement system.

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