The global source-to-pay and procure-to-pay outsourcing market is expanding rapidly with the market expected to reach $55.8 billion by 2028. Why? Because procure-to-pay teams lacking business agility, internal resources, or adequate tools are hungry for solutions that can help them streamline operations, increase strategic influence, gain spend control, innovate sourcing streams, improve efficiency, and increase time for more “high-value” work.
To do so, procure-to-pay trends point to an increased focus on three key areas: technology, collaboration, and sourcing. Below is a rundown of the three procure-to-pay trends shaping 2024.
Find out what business and IT leaders are saying about the benefits and capabilities of AI, no-code, and process automation technology
1. Greater investments in automation, AI, and data analytics
For many organizations, using manual or semi-digital tools to manage their procure-to-pay cycle is still a reality — a costly, inefficient, and risky one at that.
To solve the challenges of a manual procure-to-pay process, P2P teams will see higher adoption of analytic solutions and procure-to-pay technology for process improvement, better use of employee time, savings, and operational efficiency.
Automation
A Pipefy survey of business and IT leaders found that for finance and supply chain/procurement teams, improved agility and cost savings were among the primary drivers shared by both areas.
Primary benefits of adopting process workflow automation technology (finance vs. supply chain/procurement)
| Benefit | Finance leader responses | Supply chain or procurement leader responses |
| Improved agility | 67% | 60% |
| Cost savings | 67% | 55% |
| Better data and decision making | 33% | 59% |
| Better ability to measure KPIs and metrics | 33% | 50% |
| Better collaboration | 33% | 60% |
| More consistent process outcomes | 17% | 46% |
Artificial intelligence
When asked about the benefits of complementing their process automation initiatives with AI, more than 50% of all respondents shared that better use of employee time was the leading benefit, with competitive advantage and greater efficiency gains following.
Looking specifically into responses for finance, supply chain, and procurement decision makers and initiatives, the survey results revealed even more. For finance, competitive advantage was the leading benefit whereas for supply chain or procurement, cost savings ranked number one, followed by competitive advantage and more operational efficiency.
Benefits of applying AI to process automation (finance vs. supply chain/procurement)
| Benefit | Finance leader responses | Supply chain or procurement leader responses |
| Competitive advantage | 83% | 53% |
| Better use of employee time | 33% | 52% |
| More operational efficiency | 33% | 53% |
| Cost savings | 33% | 54% |
| Faster access to analytics | 33% | 51% |
| Better decision making | 17% | 52% |
Data analytics
Data has long been the key to understanding how to become more efficient, agile, and competitive. In 2024, there will be an added emphasis on data analytics with specific focus on data quality and management. This is especially important as teams manage various apps, systems, tools, and other components in their current tech stack. According to Pipefy’s workflow survey, 44% of respondents reported balancing 101-500 different components.
With so much data available, leveraging tools that enable procure-to-pay teams to make informed business decisions faster and more accurately will be essential for improving cost savings, sourcing and purchase decisions, business agility, and strategic influence.
2. Improving collaboration between procurement and other departments
The procure-to-pay process relies on effective collaboration between various departments and stakeholders and any sort of gap or rift in this collaborative process can lead to increased costs, risks, and inefficiencies which can impact larger procurement operations.
Yet, only 39% of business leaders say they believe procurement is “highly coordinated” in groups like finance, compliance, legal, and technology. Additionally, when it comes to procurement policies and procedures, only 46% of procurement decision-makers are in complete agreement that employees outside of procurement follow them correctly.
Improving collaboration between teams is a major benefit of adopting no-code automation tools because they streamline workflows and bridge gaps in process connections or integrations. This increases oversight of purchasing patterns and streamlines communication and work handoffs between teams via process automation. That means less errors, rework, or duplicated efforts.
The Definitive Guide to Procure-to-Pay Optimization
3. Sustainability, social responsibility, and supplier diversity
According to the 2023 State of Supplier Diversity Report by Supplier.io: “Supplier diversity and the broader business are more connected than ever before.”
A report of procurement data by Amazon Business found that 81% of respondents reported having internal or external mandates to purchase from different types of certified sellers. Despite these mandates, however, 85% of respondents reported difficulty sourcing suppliers who follow sustainable practices, preventing their companies from reaching or establishing sustainability goals for procurement.
With social responsibility and supplier diversity growing as a priority for sourcing, purchasing, and supply chain management, executive support will need to grow and P2P teams will need to tie supplier diversity to the bottom line to accurately reflect the impact on business competitiveness, innovation, and cost savings.
Meet procure-to-pay trends with Pipefy
The procure-to-pay process is packed with data and insights that can be leveraged. Between choosing suppliers, calibrating spend, and assessing risks to identifying opportunities and wasteful spending, the procure-to-pay process can play a decisive role in strategy.
2024 is a chance to refine strategies and maximize digital and technological investments so that talent is not only supported but also prepared to meet changing P2P needs and make faster, more reliable decisions made with more precision.
