P2P meaning: What is meant by P2P?

What is p2p (Purchase-to-pay) mean?

Purchase to pay, or p2p, is the entire cycle of purchasing, starting right from the purchase request to finally paying the supplier for the goods. It's the end-to-end process of making a purchase. 

A well-optimized purchase-to-pay process can help businesses become time-efficient, get better value for their monetary investments, and enhance overall business performance. 

How does the Purchase-to-pay cycle work? 

Here's the step-by-step procedure of P2P cycle:

• The P2P cycle starts with identifying the needs or requirements and finding a suitable supplier for that

• The purchasing policy looks over the purchase request and acts accordingly.

• The company crafts its order and sends it to the vendor or supplier for submission.

• The vendor completes the order.

• The supplier sends over an invoice. 

• Finally, the payment gets delivered to the supplier, and the process ends here. 

Purchase-to-pay can benefit businesses in a number of ways: 

• The P2P cycle can result in overall cost reduction for the company. 

• It can also help in minimizing time investments.

• Increased efficiency and execution 

• An optimized purchase-to-pay cycle can help businesses ensure happy and satisfied employees.