Make your business case with online Procure-to-Pay Calculator

Paramount WorkPlace, a provider of web-based and mobile spend management and procurement software solutions, has launched an on line Procure-to-Pay Calculator. It enable companies to quickly quantify the return on investment (ROI) resulting from automating the procure-to-pay (P2P) process via basic metrics on existing invoice processing and staff salaries.

The calculator was created in conjunction with PayStream Advisors , a research and advisory firm focused on business process automation in sourcing, supply chain management, procurement, accounts payable, payments, and expense management.

Manually managing invoices, chasing down late payments and other tasks that could (and should) be automated are a waste of time and money.

According to a recent report, the number-one reason companies are spending so much time on manual procure-to-pay processes is the high proportion of paper invoices they receive, while nearly the same number of survey respondents blamed most of the time crunch on the fact that they receive too many invoices not based on purchase orders. A high volume of inquiries from suppliers related to invoice or payment status came in at number three, while a lack of automated exceptions and a lack of automated approval rounded out the list.

“The first step in any initiative is to measure the current state and determine future goals,” said Khensa Bangert, VP of Marketing and Business Development for Paramount WorkPlace.

“When we researched what’s available for procurement professionals, we determined a need for an effective tool that measures current state as well as future cost saving opportunities. Based on this finding, we collaborated with and engaged PayStream Advisors to create this first procure-to-pay calculator for companies in the mid-market. A tool like this will ultimately help organisations increase efficiency, drive innovation and build a robust Procure-to-Pay platform to support growth.”

Jimmy LeFever, Director of Research and Consulting for PayStream Advisors, said, “This calculator is the first of its kind. When combined with PayStream Advisors Cost-Per-Invoice calculator, procurement, accounts payable and shared services leaders will be able to calculate the true cost of their operation from purchase through payment.”

The Paramount WorkPlace Procure-to-Pay Calculator differs from available procure-to-pay ROI calculators in that it allows companies to include the costs associated with both purchasing and accounts payable processes, rather than focusing solely on payables.

Users simply enter information about the number and salaries of personnel involved, the quantity of transactions, and level of current automation and the Procure-to-Pay Calculator delivers detailed results of the potential savings, along with a helpful companion guide to aid in the strategic interpretation of the results and how businesses can move forward with a P2P implementation plan.

“Automating manual procurement and payables processes can result in substantial savings for companies – estimates of the savings range from 50 to 70 percent over the cost of manual processing,” said Salim Khalife, President and CEO of Paramount WorkPlace.

“The Procure-to-Pay Calculator helps companies quantify what they are spending, visualise that savings, and then realise it through the implementation of a Procure-to-Pay software solution like that offered by Paramount WorkPlace .”

Procure-to-Pay software streamlines the procurement process by providing visibility into spend, employee, and supplier activity, and enabling organisations to increase the amount of spend under management. With this increased control, organisations can consolidate spend, reduce suppliers’ cost, and renegotiate volume pricing. Organisations can also reduce off-contract spend by implementing catalogues and more extensive, precise purchasing controls.