As procurement evolves, organizations are stuck between the rigidity of traditional P2P suites and the adaptability of new IM&PPO solutions. Is it time to rethink how we approach automation?
P2P Suites: Reliable but Rigid
For years, Procure-to-Pay (P2P) suites have dominated automation strategies, covering requisitioning, purchasing, receiving, and payment processes. These suites integrate eProcurement and accounts payable (AP) invoice automation, offering structured workflows and tight control over pre-approved catalogs. But their rigidity comes at a cost.
Many P2P suites excel in specific areas based on their origins. Some, built on eProcurement foundations, falter in AP and payment features, while others rooted in AP struggle with procurement functionalities. This lack of flexibility means organizations often face challenges adapting these tools to complex or unconventional workflows.
P2P solutions are ideal for standard processes but struggle with scenarios requiring collaboration or out-of-catalog purchases. While providers are working on self-service configurations and workflow flexibility, progress is slow, leaving these tools less adaptable for dynamic procurement needs.
The Newcomer: IM&PPO’s Flexible Approach
Enter Intake Management and Procurement Process Orchestration (IM&PPO), a modern alternative prioritizing user experience and adaptability. These solutions focus on modeling workflows and integrating with existing systems rather than attempting to handle every process in-house.
IM&PPO excels at addressing diverse spend types, offering customizable workflows and end-user-centric designs. However, these tools lack critical P2P functionalities like catalog management and payment processing. To bridge the gap, they often require integration with existing P2P or ERP systems, limiting their standalone utility.
For organizations with less complex needs, IM&PPO paired with basic PO capabilities can serve as a lightweight alternative. For most, though, the real potential lies in layering IM&PPO atop a traditional P2P suite, combining flexibility with execution strength.
Where the Lines Blur
The procurement technology landscape is changing. P2P providers like SAP and GEP are integrating IM&PPO features into their offerings, while IM&PPO leaders like Zip are expanding into P2P functionalities. This convergence signals a future where flexibility and control coexist, offering businesses more tailored solutions.
So, what’s the right choice? It depends on factors like your organization’s maturity, key spend categories, and IT infrastructure. The convergence of P2P and IM&PPO is a step toward smarter, more adaptive procurement, ensuring organizations can keep pace with today’s dynamic landscape.
As procurement leaders, we don’t have to choose between flexibility and control anymore—we can (and should) demand both.
