Building Better Business Foundations: Why an ERP Needs Procure-to-Pay to Truly Shine

Picture this: you're building your dream home. The first step? Laying a strong foundation and building your framework—this is your ERP system. It's the backbone, the structure that supports everything else. But what comes next?

You step inside that solid structure. It's sturdy, it's impressive. But without lighting, fixtures, appliances, flooring, and paint—the details that bring the space to life—it lacks function and finesse. This is where your Procure-to-Pay (P2P) system enters the story. It transforms your operational house into a fully functioning, secure, and efficient home.

In business terms, many organisations implement an ERP system as a centralised, company-wide platform to manage key processes like finance and HR. While considered essential by many organisations, an ERP on its own often lacks the nuanced capabilities needed to manage the procurement lifecycle effectively.

That’s where a dedicated P2P system fits in—integrating seamlessly with your ERP while offering specialised tools to optimise how goods and services are sourced, purchased and paid for.

ERP systems are brilliant at centralising core business functions. They provide a single source of truth for financials, payroll, inventory, and logistics. For example, a university might use an ERP to manage student enrolment, staff payroll, and high-level budgeting. And a government department may rely on it for budget allocation, specific reporting, and HR functions.

But while ERP systems are broad in function, they often lack the depth of functionality required to effectively manage (or report on) the complete procurement process and can have a poor user experience—especially when accessibility, flexibility, supplier engagement, and contract compliance are critical.

Imagine trying to manage the complexities of sourcing, supplier vetting, contracted spend, and invoice approvals using spreadsheets or email chains—even if your ERP captures the final payment. It’s inefficient, prone to human error, and lacks the visibility and reportability required to ensure compliance and drive business insights.

A Procure-to-Pay system complements an ERP by offering procurement-specific workflows tailored for purchasing approvals, and matching—capabilities that ERP modules often struggle with. It drives cost savings and operational efficiency by automating tasks like purchase requests, supplier onboarding, PO matching and exceptions handling. Transparency and compliance are strengthened through features like audit trails, approval hierarchies, and policy-driven pathways.

Healthcare: In a large public hospital network, the ERP handles staff rosters, patient records, and financial reporting. But the procurement team needs to respond quickly to medical supply shortages, manage preferred supplier agreements, and maintain compliance with government procurement policies. A P2P system offers real-time visibility into available and compliant suppliers, automates contract renewals, and helps prevent maverick spending.

Education: A university’s ERP might be great for central budgeting and HR, but departments often purchase things like lab equipment, essential teaching materials, and IT services independently. A P2P system brings structure to decentralised spending, offers a searchable vendor directory, and makes sure purchases align with approved contracts and policies. Procurement teams maintain a level of control, while finance gains insight into committed spend before invoices land.

Government: In state and local government, public trust and compliance are paramount. ERPs manage grants, funding allocations, and payroll. But when it comes to procurement, audit readiness and probity are essential. A P2P system enforces policy-based decision-making, records sourcing rationale, and streamlines reporting for audits, reducing the risk of non-compliance.

The real power lies in the integration. The ERP is your data foundation; P2P is your operational interface for procurement. Together, they offer:

• Improved data accuracy: No duplicate data entry. Contract values, purchase orders, and invoices flow smoothly.

• Stronger collaboration between finance and procurement: Finance can track committed spend earlier in the cycle, improving forecasting and cash flow.

• Improved risk management: With contract visibility, supplier performance tracking, and automated compliance checks.

• Better supplier insights: P2P systems allow filtering and categorisation of suppliers that meet certain criteria to help organisations meet Corporate Social Responsibility requirements or goals.

• Faster procurement cycles: Leading to quicker service delivery and fewer delays in project execution.

You wouldn’t build a house and stop at the foundation. Without the final touches, it would be liveable but feel unfinished. Similarly, organisations that rely solely on an ERP system are missing the operational depth a P2P platform brings.

By investing in a P2P system, like Unimarket’s award-winning platform, that integrates with your ERP, you're choosing to build a more complete, efficient, and resilient organisation. One where procurement isn't a back-office function, but a strategic enabler of value, compliance, and service excellence.

So, if you’re serious about elevating your business operations and unlocking the full potential of your ERP, it’s time to think beyond the foundation and get in touch with us today.