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5 Steps to automating purchase-to-pay (P2P)

In today's fast-paced business environment, manual procurement processes are inefficient, error-prone, and costly. That’s where Purchase-to-Pay (P2P) automation comes in. A well-implemented P2P system streamlines purchasing, improves visibility, ensures compliance, and speeds up invoice processing — all while reducing costs. It has become a ‘must have’ business solution.

If you’re looking to implement a purchase-to-pay automated system, follow these five simple steps to ensure a smooth transition and maximum ROI.

Step 1: Assess your current procurement process

Before diving into automation, it is important to have a clear understanding of your existing processes. Map out your procurement and accounts payable workflows from requisition through to supplier payment. Identify bottlenecks, inefficiencies, and pain points such as:

• Manual data entry – are your invoices error prone? Is the manual data entry taking far too long?
• Lost invoices – are invoices getting misplaced on a regular basis or does it take too long to find what you are looking for?
• Delayed approvals – on average how long is approval taking? 
• Lack of spend visibility – do you know exactly what your business is spending on what? Do you have accountability for maverick spend?

This first step helps establish your baseline and define the specific goals you want automation to achieve whether it's reducing cycle times, improving compliance, reducing manual entry or gaining better visibility.

Step 2: Define your requirements and goals

Every business is unique, so your automated P2P system should align with your specific operational needs. Clearly outline:

• Functional requirements (e.g., electronic invoicing, approval workflows, budget controls)
• Integration needs (e.g., ERP systems, accounting software)
• Security and compliance expectations
• KPIs for success (e.g., invoice processing time, on-time payments, supplier satisfaction)

Involving teams throughout the business from procurement, finance, and IT ensures buy-in and a solution that meets cross-functional needs.

Step 3: Choose the right P2P solution

There are many P2P platforms on the market. When evaluating solutions you should consider a solution that:

• Fits your budget and scale
• Offers user-friendly interfaces
• Supports mobile and cloud capabilities
• Easily integrates with your existing tools and ERP solution
• Provides robust reporting and analytics

Make sure to request demos and about onboarding support and training provided.

Step 4: Plan and execute a phased implementation

Don’t try to automate everything at once. A phased rollout ensures smoother adoption and easier change management. Consider:

• Automating one area of the P2P cycle first
• Starting with one supplier group
• Training users in stages
• Monitoring performance metrics closely
• Gathering feedback and optimising as you go

Ensure your team understands how the system benefits them personally such as fewer repetitive tasks or faster approvals to encourage adoption.

Step 5: Monitor, measure, and optimize

After the system is live, the exciting bit begins as you start to see results. Regularly review your KPIs and gather user feedback to identify areas for improvement. Use the data from your new P2P system to:

• Track spend against budget
• Identify top-performing suppliers
• Optimise approval chains
• Reduce maverick spending

Continuous improvement is key to getting the full value out of your P2P investment.

Final Thoughts

Implementing a purchase-to-pay automated system may seem like a big project, but with a clear plan and the right technology partner, it can be a smooth transition. By following these five simple steps, your organisation can move from outdated manual processes to a streamlined, efficient, and data-driven procurement future.

Ready to transform your P2P process?

Here at Pegasus we know no two businesses are the same which is why we develop first class solutions with flexibility in mind. 

Our procure-to-pay automation software available with Opera 3 SE provides cutting edge technology to transform your entire P2P process. 

What can we provide?

• An accredited Partner channel to assist with onboarding, training and continuous support
• A free no obligation demo to see the solution in action and the chance to ask all those pressing questions
• Unrivalled customer service. We’ve been in business over 40 years and we are pretty good at this

Posted On: July 15, 2025