The Recipe for Success – Commercial Process Fitness 

Many organisations experience a number of challenges in the Procure-to-Pay area. Typical symptoms include a large number of blocked invoices, requiring manual rework to clear and pay. These can result in unpredictable working capital requirements and impacting reporting. Significant direct costs and risks arise as rework is completed, negotiated benefits lost, and/or the supply chain is potentially impacted.

Process fitness can help to ensure predictability and reliability of system data including working capital requirements, operational and financial result. A smoothly operating process fitness framework enables teams to focus on more strategic and value adding activities

The Faculty developed the Commercial Process Fitness Framework below to drive the research initiative. Twelve organisations were included in the research covering Government, Manufacturing, Heavy Industry and Financial Services industries. A total of 39 individuals provided qualitative feedback whilst 41 completed the quantitative survey.  

Key Findings

It was quickly understood that the mantra of ‘One Version of the Truth’ helped members to create clarity, momentum for change and communication across business units. Process fitness was characterised by recognising the interrelationships between data, processes and systems and the importance of visible metrics. It was an increasing focus for many organisations, with significant investments being made in ERP and other related system implementations.

The majority of organisations reported communicating processes to all business stakeholders within their organisation, but were still challenged with obtaining buy-in for these processes. Senior management commitment was identified as important in driving a focus on standardisation, embedding processes within systems, and using system generated metrics as a source of KPIs.

High levels of commercial process fitness are dependent on having a series of enablers in place and operating effectively. Without these enablers in place, it can be difficult to implement and sustain a high degree of process discipline. Procurement has an opportunity to take a leadership position in driving commercial process fitness through articulating the processes, the importance of master data, and helping to connect the inbound supply chain with the finance organisation

Detailed analysis and comparative benchmarking exists in the full report, including identification and both of ‘good’ and ‘best’ practice in each area. To request a full version of the report, please email The Faculty