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.
Get more stories like this
Subscirbe for more news,updates and insights from Beroe