Type: Business
Pages: 7 | Words: 2095
Reading Time: 9 Minutes

When seeking the key performance indicators for the pay to purchase many considerations is put into consideration. It is important to choose the key performer indicators in accordance with the goals and objectives of the business (Hinrichs, May 2004). The role of the key performance indicator is to check and track the performance of the purchase department to pay models. It should be considered that the selection of key performance indicators is influenced mainly by the overall goals and the business objecvtives. It is the duty the supervisors and the clerical personnel of various department to be involved in various organization that wants to adopt NPP (Meersman, 2011). The role of supervisors and clerical personnel from the various organizations involved in this action should be clearly stated. In the case study, the Benfer team members are involved. The case states how the different groups had been equiped on how to handle expensive items. The remaining group could cater for other aspects of management of other resources.

The business can remain focused on what is measurable in terms of performance. It is advisable to focus on the activities that wil enable the business achieve the agreed performance objectives (Gattorna, 2003). The Benfer tried to picture the changes that can be done in order to remain on the course of their objectives and goals. Documentation was neded to keep track of the cactivities of the Benfers to maintain their agenda. In addition, to keep the organization on track the Benfers gave an outside company to carry out certain research about its competitors and come up with appropriate ways of improving the procurement practices. The survey was to dwell on the companies that perform very well and had good reputations and known for running the procurement proceses efficiently. The Benfer group was able to come up with a solution combining of new and old skills.

Benefits of performance indicators should be proportion to the efforts required to collect the data. It is very unethical in business to use the collected data that one is not sure whether it will be important to be included like an indicator. It is good to have enough data required in terms of performance of a business. The consulting group gave a helping hand to the redesign team in creating a process flow plan (Bohlin, 2008). The detailed plan about the activities of the group in NPP process was to correspond with the need for that data. The recommendations on the charts did not to seem to be of importance to the Benfer Company. The data colected by the group did not meet the require ment needed for it to be used as an indicator.

The key performance indicators should be able to give the direction of action to be undertaken. Incase the indiators on KPI are worse then they must be followed appropriate actions to salvage the situstion. Incase the indicators are positive then it should be reported back to the organization. This serves as a motivator or it can be used in the provision of incentives. Tailor KPI to fit the needs of the recipients. The use of appropriate KPI model that are suitable for different recipients mostly consumers. There should be good communications directed at meeting the set goals. The members of the group gave their own opinions that varied from one member to another. To look for an ultimate solution the combination of the suggestion and formulate a recommendation that will help the Benfer understand the customers.

Work of the group helped in comimg with some changes that begun with managers.  Credit cards were given to managers who used them when they want to buy something urgent. It helped in eliminating the soft ware that was to monitor (Aykin, 2007). The reprt helped Benfer to come up with one major contractor than the numerous small contractors. It was benefitial to the Benfer organisation as it reduced the supervision of many small contractors.

SWOT analysis

For SWOT analysis to work effectively there should be realistic facts about the strength and weakneses of the organization. The truth will facilitate in coming up with a practical process of the organization. It should draw some differences between the current position and the future position. It is likely to motivate the management to adjust some activities fro them to meet long-term goals. The SWOT analysis should be specific and avoid guesing the facts, which one is working upon (Fine, 2009). The SWOT analysis should be related to the competitor in terms of assessment and other aspect; it should either be better than the competitores strategy. They feed into the marketing objectives.

Strength for the research

The Benfer team was full of experts who were qualified to collect the relevant data, as Benfer required it. The new processes and procedures were appropriate and came at the right time when Benfer was requesting it. The new services actually realized the importance of customers. Customer satisfaction was the biggest agenda achieved in the research. Customers were valued like the boss and were to be treated very well with maximum care. This will keep customers from temptations of moving to other competitors.

Weakness in the research

The conlusion was never arrived at since every member had his or her own view at the end of a research. The performance indicator was not found for the Benfer. The combination of the redesign team and the staff led to clash of interest.

Opportunities in the research

After realization of the performance indicator, it will be very easier for the company to grade at what stage they are. It was realized that the alliances of is very much strategic in improving the business. It was very possible to segment the market when Benfer identifies its potential. The review of company objectives stimulates an organization as it meets its needs. After the research, the company came to realize the large market it had. The international market was realized in the Benfer had to put in some efforts to meet the requirement of the market. The opportunity was realised when the company knew the competitor’s strategies. Benfer was able to tell the weakness of the competitors.


The most dangarous threat to any business is the competitor. Competitors are always on the back just waiting any slight miscalculation to overtake. Competitors can have all tricks played in the market making it hard for a company to rise. When a competitor controls the home market, it is bound to slow down its profit generation (Wylie, 2009). The other aspect of competitors is the price wars. Other competitors can lower their prices to leave the company in a negotiating position on whether to do the same. It is important to stick to normal prices since not all customers are interested in cheap products.

It is very hard to compete with a company that is constantly having new innovative, products and services. It could posses the latest product making the organization’s product absolete in the market. It is good for a company to maintain coming up with new products, being innovative in the product and services. The other threat is when the competitor has many channels than others. The competitor can enjoy the market through the intermediaries. Government policies are likely to affect the business. When products, which their prices have been reduced, are later subjected to higher taxes results in unfavourable business environment. Taxed products or services will seem too expensive.

Benefits of managing the procure to pay

It is of low cost because the automation makes the buyer makes more bids and increases the speed of ticketing. Benfers worked very closely with EPS system for inputting the request information.  It creates time for negotiation and finding better suppliers. Further, the P2P improves the ticketing decisions by availing more information on travellers. Buyers have a pool of information to guide them in decision-making (Wulf, 2006). They have ample time to select a better supplier. It is essential to managers who can use it as a monitoring tool. Procure to pay can help in reports analysis in the purchasing department, it leads to little time spend on auditing since data needed is accessible online. The purchasing process becomes clear without any mishaps of any sort.

How to apply P2P to implement future process

P2P process is very essential in market expansion and identification of opportunities.  The purchase to pay process focuses on identification of buyers’ needs. Due to the constant research, the buyer usually explores perspective of adopting certain trends. It also evaluates the solution components, supplier capability, and the landscape of the supplier in the market (Starinsky, 2001). It is here that the buyer usually has many profiles containing the specifics of suppliers.

For the P2P process to be efficient, then it should be analyzed to ensure its efficiency. It should be able to value proposition for outsourcing P2P. The analysis should state the solution characteristics of outsourced P2P. It should be able to state the impact on the supplier’s landscape. The implications of the P2P process on the buyers and suppliers are realized. It shows how they affect the market should be understood in the process.

The case of P2P gives a well-detailed insight of the market. It shows how it affects the suppliers and buyers. In the report, it gives both opportunities and challenges that face the market. Through a grading procedure, one can decide on the best supplier. The idea of outsourcing P2P creates a big business impact beyond a direct –cost impact. It addresses the pain-points in buyers’ financial supply chain.

Due to technology advancement in all sectors, procurement has not left out. It goes beyond labour arbitrage, in addition to process efficiency and effectiveness. Technology has made it possible to shorten the previous procedures of purchasing. The P2P opportunity has served as a point to entry into the PO market. It has led to suppliers expanding solutions bottom up from AP to P2P. It has contributed to offshore centric supplier leveraging existing global sourcing abilities to issue the P2P.

Suppliers using P2P services are making investments in making a delivery capability in terms of acquisition, partnerships, and the overall internal investment. To implement such process in the future, there must be a data to guide in decision-making.  To solve the problem of impulse buying the organization will have to procure first before buying. There should be a group of people to analyze the market before purchasing.

Procure to purchase will be applied in obtaining materials from reliable suppliers. This will counter the problem of delayed delivery from some suppliers. It will have enough researched data of all suppliers and their ability to beat the deadline. It will reduce the tendency of delayed delivery of raw materials.  It will reduce impulse purchase of materials that will turn out to be a loss to the company. The procedure will be transparent, and it can be applied to spot any irregularities in the procurement department.  It guides in reducing the possibilities of unethical behaviours among the procurement officers.

The problem of the Benfers was less transparent in its information but it was addressed when undertaking the P2P process. Procure to Purchase puts in consideration all factors that might affect the purchasing department. Availability of data will help in integration of the systems, as it will provide a wide range of sources.  After acquiring enough information about a supplier, it is easier for the organization in evaluating the ability of a supplier.  The research should have the entire vendor’s history whether one has been meeting the dateline. This will also guide in negotiations based on the quality of the past work he has done to other companies.

P2P guides in budget planning in an organization. Since the prices of commodities are known in advance, it is easier to locate funds appropriately in line with budget allocation. An early prediction of some loopholes helps in solving the problems before it spreads to other areas of the organization. It increases efficiency in the purchase department by monitoring and tracking the purchasing cycle. It eliminates the time that could have been spending in making rules that should govern the purchasing process.

The future application can be on payment system as P2P is quick and easier way of payment. After compliance with requirements, the supplier is paid very fast compared to the previous purchasing methods (Matsuura, 2003). The suppliers achieve their objectives since they are advised on how to meet the requirement in the first stage of the P2P. After reduction of manual inputs,   the systems are likely to integrate seamlessly improving the overall reporting system. Manual reports used to consume a lot of time in getting the required data leading to inflexibility and invisibility.

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