Procure to Pay (P2P)

Certified Inventory Optimization Professional (CIOP) is an end-to-end supply chain certification program. The certification consists of 30 modules focusing both on traditional and futuristic topics. The traditional topics are introduction to supply chain management, all about inventory, strategic business planning, forecasting, demand management, capacity management, sales and operations planning (S&OP), master scheduling (MPS), materials requirements planning (MRP) and production activity control (PAC). It also includes topics on procurement, warehousing, transportation, distribution, and packaging. The topic on the future trends such as Blockchain, Internet of Things (IoT), Robotic Process Automation (RPA), Machine Learning (M/L) and Artificial Intelligence (AI). There is a significant focus on supporting technologies such as forecasting and process mapping tools such as Microsoft Visio. In addition to the above indicated topics the participants need to master over 3000 terminologies in supply chain management.

The procurement to close process is a disciplined approach to managing supplier relationships and establishing business s purchasing practices. It manages supplier capacity, stabilizes prices, minimises downtime or inconsistencies when it come to inventory quality, avoids stock-outs or excess inventory, and coordinates other supply chain issues with production efficiency. The process includes many activities such as supplier procurement, inventory control, and contract management. In addition, it also involves the development of a whole-of-business strategic plan.

The objective of the process is to minimise cost, risks, and improve business performance by managing buying, delivering, storage and financial resources. The main areas that are addressed include supplier cost, time to market, cost of supplier service, inventory control, contractual obligations, order entry, optimal use of available resources, and material flow. The process is designed to improve the identification, analysis and solutions for problems in the supply chain. The main areas that require attention are contracts, inventory control, quality management, pricing, risk management, and financing. The primary function of a supplier is to take an order and deliver it in a timely manner. They are also responsible for delivering the finished product and providing customer service.

Organizations that make use of the procurement-to-pay process have been able to significantly decrease their cost of goods sold and their capital budgets spent. Vendors are able to reduce their operational costs while increasing revenue by implementing effective procurement strategies. This enables organizations to focus on their core business activities, improve profitability, reduce inventories, increase production efficiency, reduce costs, and develop better customer relationships. Since the procurement functions have been simplified by the modern method of doing business, more businesses are looking towards outsourcing to third-party companies, who can better manage their activities. Outsourcing is the wave of the future.