Pandemic Spurs P2P Improvements For Greater Efficiency and Effectiveness

A global Cruise Line company with multiple brands faced with limited resources post-pandemic was looking to improve the efficiency and effectiveness of their P2P processes in preparation for a full return to service.   They hired OnDemand Professional Network member Alvin Wong to help them with two challenges:  1) to analyze, assess root-causes, and help address a backlog of unpaid supplier invoices, and 2) to develop a P2P roadmap to improve the process. SITUATION OVERVIEW During the pandemic, an unintentional backlog of past-due invoices, changes in leadership, and the reduction of resources resulted in an urgent need for help to address issues and establish a “roadmap” to improve the organization’s P2P processes. Although the predominant number of invoices were paid on time, there were hundreds of invoices past due over 60 days, with many over 120 days, the company was at risk of being cut-off by suppliers.  The invoices were not past-due for a lack of company funds, but rather for validation and confirmation by purchasers before payment.  Something was failing in their P2P process and any findings were to be incorporated into a “roadmap” for a recommended P2P modernization plan. APPROACH Working with Finance, Sourcing, Technical Operations, and Supply Chain Procurement, we conducted a series of past-due invoice reviews, stakeholder interviews, and process and system mappings.  Using the findings, we analyzed root-causes of the past-due invoice problems, implemented changes, and identified various opportunities to incorporate into a “roadmap” to improve P2P processes and systems. CRITICAL SUCCESS FACTORS Fact-Based Data-Driven Analysis and Findings:  Commit the time to smartly collect and analyze data first to avoid wasted efforts solutioning the wrong...