2016 Purchase-to-Pay for Mobile Report

Unlocking the Power of Mobile Purchase-to-Pay (P2P) for an Efficient and Empowered Workforce

May 20, 2016

Underwritten in part by GEP, Puridiom, and SciQuest.

Introduction

When automating Purchase-to-Pay (P2P) processes, many organizations implement electronic procurement, invoice management,and electronic payment tools. This streamlines the P2P cycle, reduces processing costs, and improves company control over spend. One of the most advanced features of today’s advanced P2P solutions is their mobile capability, which allows back-office professionals to access business software tools from anywhere, at any time. Using mobile technology for P2P activities is a best practice for increasing efficiency, and a strategic tool for organizations that want to improve employee productivity in back-office processes.
However, concerns about the security of mobile purchase-to-pay technology are becoming increasingly relevant as organizations rely more heavily on cloud-based solutions, and allowing employees to access company data via their personal devices can be problematic. When faced with the potential challenges of mobile solutions, some organizations choose to forego using the tool altogether.
Today’s mobile P2P technology providers work to create more flexible back-office processes without sacrificing company security or employee efficiency. These solutions can be used both to modernize a workforce more comfortable with manual methods, and to tighten up lax company policies around the use of mobile devices for business activity. This report explores the benefits of P2P solutions for improving back-office processes, as well as the strategic value of leveraging a solution with advanced mobile technology. It also highlights the ways
in which mobile applications are deployed, and the different methods that solution providers use to ensure security and control over company data.

Today’s Mobile Workforce

In order to gauge the use of mobile devices for business activity in the current North American B2B environment, PayStream Advisors conducted a survey of over 200 back-office employees from organizations across several industries and market segments. When asked to describe the nature of their company’s mobile workforce, most organizations described the use of mobile devices as moderate, see Figure 1.

Figure 1: Most Organizations Have a Moderately Mobile Workforce
“Which best describes the nature of your mobile workforce?”

Over one-third of organizations report having a highly mobile workforce. According to a 2016 Business Travel Trends survey conducted by the Travel Leaders Group, business travel will increase in the coming years, as survey results show that most North American businesses expect their business travel to either remain the same or increase in 2016.*1

With the rise in business travel, the use of mobile devices for business activity will also grow.
Mobile devices are not used solely by travelling employees, but are becoming increasingly important for employees in all roles. The International Data Corporation (IDC) predicts that the U.S. mobile worker population will grow at a steady rate over the next five years, increasing from 96.2 million in 2015 to 105.4 million mobile workers in 2020.

*2 By that time, IDC forecasts that mobile workers will account for nearly three quarters (72.3 percent) of the total U.S. workforce.

*1 Travel Leaders Group. “Business Travel Poised for Growth in 2016 According to Latest ‘Travel Leaders Group’ Survey.” News release, December 22, 2015. Travel Leaders Group.

2 International Data Corporation. “IDC Forecasts U.S. Mobile Worker Population to Surpass 105 Million by 2020.” News release, June 23, 2015. IDC.

Several factors contribute to increases in mobile activity, including a push for greater employee productivity, more remote employees, and large numbers of millennials entering the workforce. However, increasing mobility in the workforce is not due only to necessity and cultural progression. Organizations’ executives are promoting mobile device use for work-related activity both in and out of the office because it improves workplace relationships and encourages knowledge sharing and employee autonomy—all of which also result in increased efficiency.3 In addition, when using a Bring Your Own Device (BYOD) strategy, offices save money on purchasing and maintaining hardware.
PayStream has found that Purchase-to-Pay departments are also adopting a mobile strategy to improve process efficiency. When asked which business functions they perform on their mobile devices, most respondents reported using them for expense reporting functions, purchasing, and invoice approval, see Figure 2. However, over one-third of respondents reported that they do not use their mobile device for any P2P activities.

Figure 2: Organizations Use Mobile Devices for Expense Reporting, Purchasing, and Invoice Approvals
“Do you perform any of the following functions via your mobile device?”

*3 Pitichat, Thiraput. “Smartphones in the Workplace: Changing Organizational Behavior, Transforming the Future.” Lux 3, no. 1 (2013): 1-10.

PayStream attributes the low use of mobile solutions in the surveyed organizations partially to the fact that most organizations in North America are not using P2P automation at all. Only 34 percent of organizations are using eProcurement software, 41 percent are using invoice workflow automation, 22 percent are using eInvoicing, and most businesses (63 percent) are using checks for over 50 percent of their payments. When organizations do move toward P2P automation, mobility is often not their top consideration; when asked about their top improvement goals in 2015, most organizations reported mobility as the least important concern, see Figure 3.

Figure 3: Mobility Is the Least Important Process- Improvement Goal for Organizations
“Which of the following improvements is your organization focusing on the most in 2015?”

PayStream Advisors believes this low focus on mobility is due to the conception that mobile business applications do not greatly increase P2P efficiency. However, organizations should not consider mobile applications as an add-on feature of procurement, invoice automation, and payments software. Instead, organizations should proactively consider P2P solutions’ mobile offerings when selecting a system. This will combine P2P automation’s process improvement and cost reduction with the collaboration and flexibility offered with a mobile workforce.

P2P Applications

The following items outline the different features of today’s P2P applications, and how P2P departments can use these solutions.

Application Deployment

Mobile solutions come in two forms: native applications and responsive web design (RWD). While there are advantages to each type, there are also differences in accessibility and security.
Native apps offer downloadable software that is directly accessed from the user’s mobile phone or tablet. Solutions offered via a native application can be accessed without an internet connection, allowing the user to add information into the system even when they are offline. Native apps must be updated regularly so that the technology and security features are up-to-date and effective, and the app must be installed on every device an employee uses for work activities.
Responsive web design applications are hosted in the cloud and are built to deliver a single application that offers a user interface that is scalable across any device. As travelling employees work across varying environments and multiple electronic devices, RWD allows them to move from smartphone to tablet to laptop—all without sacrificing speed or efficiency. RWD apps require an internet connection, but when online, they are always connected to the parent system and its real-time, updated data and features. Because users are accessing the main system instead of a modified mobile version, RWD apps do not require any additional user training.
Each of the two delivery methods is more suitable for some organizations’ business structures and culture than others, and the type that a provider offers may affect its appeal to a business.
Depending on the P2P software, some native applications do not give the user complete access to all of the solution’s features. For example, procurement software often provides companies with access to catalogs containing large amounts of real-time purchasing data, such as catalog item details, vendor contracts, or purchase order statuses. In most cases, the user must log on to the main system to access this part of the procurement solution, even if the provider offers a native application. In this situation, it is most beneficial when the provider offers both kinds of application to ensure that the user has consistent access to the system.

Security

Security controls are a primary focus for P2P mobile solution providers, as they realize the risk of enabling an employee to access company information from a personal device. Native applications are more likely to raise security concerns regarding employees’ personal devices and company data, as a mobile device is subject to the risk of loss, theft, or compromise, and data in an installed app can be easier to access by an outside party. With responsive design, sensitive data remains on secure servers in the cloud, leaving the responsibility of security and control to providers and their advanced firewalls. However, providers of native applications have implemented controls to combat security risks, including passwords, SSL encryption, and timeout sessions. In addition, most providers do not store authentication information or company credit card information on users’ phones, and the majority of mobile apps are PCI-compliant. Providers also prepare for the possibilities of
a lost device or an employee leaving the company by implementing deactivation settings, which allow the employer to automatically remove access to the solution—even from a native application.

Even with the extensive security measures offered by solution providers, it is important for organizations to establish internal controls regarding employees’ mobile device use. According to survey results, most organizations do not enforce mobile security controls, see Figure 4.

Figure 4: Most Organizations Do Not Enforce Security Controls for Mobile Device Use
“Does your organization enforce any security controls on your use of mobile devices for work- related activities?”

Among those that do use security controls, common measures include:

» encryption, password protection, and/or antivirus/anti-malware apps.

» only allowing the user to access the system through a corporate security server.

» requiring the user to set up email through company-installed software, and to use a six-digit security code when logging into a mobile device.

» giving IT complete access to personal phones, which can be wiped by the company.

» limited user access based on hierarchy, role, etc.

» the use of a specialized third-party security service.

» requiring the user to sign security policy agreements

PayStream encourages organizations that are not using security controls to consult with both their potential P2P solution provider and a mobile security expert before implementing a company-wide mobile initiative.

Efficiency

Purchase-to-Pay automation greatly increases cost control and savings, reduces processing times, improves supplier relationships, and builds competitive advantage. When an organization leverages these solutions with mobile applications, it increases the versatility, productivity, and collaboration of the workforce—both in and out of the office. These solutions feature unique features for each of the components of P2P automation shown in Figure 5.

Figure 5: The Purchase-to-Pay Platform

One of the greatest benefits of mobile purchase-to-pay applications is the speed they bring to approval processes, including for requisitions, purchase orders, invoices, and payments. Most solutions allow users to approve requests directly from their phones through the native application
or an email client. In addition, many solutions also feature the ability to take pictures of invoices, receipts, and other important business documents and upload them directly to the P2P solution. Some solutions even include built-in Optical Character Recognition (OCR) software that extracts data from these documents. Other mobile P2P features may include:

» eProcurement & Order Management – The main features in procurement technology include requisition creation and workflow, in-house and punch-out catalogs featuring product information from thousands of suppliers, PO creation, and an order management interface that allows for full visibility into all order activity. eProcurement solutions often support PO flip to invoice and integration with AP as well. Mobile applications provide real- time access to vendor information and catalogs, allow managers to quickly approve requisitions, streamline purchase order creation, and give real-time access to order status, from shipment to receiving and reconciliation.

» Accounts Payable and Electronic Payments – Most eProcurement solutions integrate with AP software, facilitating seamless movement from requisition to payment. AP automation involves paperless invoice processing through electronic invoicing and/or OCR data capture, invoice matching and exception management, and approval workflow capabilities. Many AP solutions also offer in-house payment capabilities or directly integrate with leading payment solution providers. Leading electronic payments (ePayments) strategies include ACH, wire, and commercial card payments. Among other features, mobile solutions allow users to scan and upload invoices, approve invoices, check payment status, and communicate directly with suppliers on invoice and payment discrepancies.

» Supplier Management – Most solutions offer some level of supplier management, either through multi-level supplier self- service platforms or a searchable supplier directory. Other features include supplier data management, supplier risk assessment, and supplier analytics and reporting tools for insights and auditing. Many providers offer mobile access to these tools, as well as a separate supplier-side application for their clients’ supplier base.

» Spend Management – Reporting and analytics tools allow purchasing, AP, and legal departments to pinpoint inefficient spend activity and identify areas for improvement. Features include out-of-the-box and/or ad-hoc reporting, interactive reporting dashboards with drill-down capabilities, integration with Excel and other analytics tools, and industry benchmarking for data analysis. Mobile applications enable users to access simplified analytics dashboards so that they can gain insights on spend and process data on the go.

Conclusion

As organization search for a P2P solution, they should not overlook the increasing relevance of mobile P2P applications. The capabilities of these applications are very important for today’s global businesses and travelling professionals, especially as workforces become more mobile and reliant upon advanced mobile technology. Mobile P2P solutions are valuable and strategic tools for bringing an organization to the next level of efficiency and competitive advantage. The following profiles detail the offerings of P2P software providers and their advanced mobile applications.

GEP

GEP is a global procurement technology developer with over 15 years of experience in deploying Purchase-to-Pay and Source-to-Settle solutions. With its P2P/S2S platform, SMART by GEP®, GEP has made it possible for all tasks in the purchasing and payables processes to be carried out in one system and from any device. The SMART by GEP platform includes solutions for spend management, procurement, sourcing, contract management, order management, supplier self- service, and invoice processing. Each component of the platform can easily integrate with clients’ existing systems, or can be deployed as a standalone product.

Founded	1999
Headquarters	Clark, New Jersey
Other Locations	London, Prague, Mumbai, Shanghai
Number of Employees	1400
Number of Customers	180
Target Verticals	All verticals
Awards / Recognitions	Top supplier, 2015 EPIC Procurement Excellence Awards; HfS Blueprint, Winner’s Circle; Supply & Demand Chain Executive Magazine, Top 100; Everest Group’s PEAK Matrix for Procurement, Star Performer

Purchase to Pay and Mobile Capability

SMART by GEP includes full P2P functionality in a unified platform that ensures natural and accelerated process flow from negotiation to contract to catalog to order to invoice. The single product platform provides full control and visibility into all spend activity and purchasing data, and includes functionality for spend analysis, opportunity development, savings planning and management, supplier information and relationship management, and catalog optimization.
SMART by GEP’s procurement offering covers requisitioning, PO management, receiving, and reconciliation. The solution features many types of purchasing catalogs, including punch-out, supplier-hosted, managed, and internal (buyer-managed). The solution also includes multi-variable and multi-stage requisition approval workflows, with failover, delegation, and escalation controls. Purchase requisitions are flipped into orders upon approval, and fulfilled POs can be flipped to invoices later on. SMART by GEP natively accepts invoices originating from suppliers through the SMART by GEP portal, and also integrates with supplier systems for order and invoice transmission using EDI and/or cXML standards. Upon invoice submission, GEP’s platform conducts field-level matching based on business rules, automatic re- routing of incorrect invoices back to suppliers, and PO flip on validated invoices.
GEP’s responsive design mobile app approach ensures that the entire platform is usable on any device, while the most commonly- used functions are available on a native application. GEP consistently works with customers to refine and develop new applications for the mobile solution, and the current app suite was designed according to customer requirements. No additional training is necessary for client employees to learn the native app. The app is updated according to a quarterly major enhancement schedule.
In order to ensure security, all data exchanges between a user’s mobile device and the parent system are secured using Hypertext Transfer Protocols (HTTPs), and are encrypted with AES 256 encryption. In support of enterprise Single Sign-On login credentials, authentication occurs at the respective enterprise servers. Discontinued users are automatically logged out from the app on their devices as soon as access is revoked in SMART by GEP.

Implementation and Pricing

Implementation of SMART by GEP includes configuration to the client’s business processes and robust customer support to drive end-user adoption. During the implementation and pre-production phases, GEP provides detailed training divided into three parts: system overview training, screen navigation, and functionality training. These are offered both on-site and remotely via web conferences. Post-implementation, GEP provides phone and web-based support. GEP’s global customer support staff is based out of three regions (US, Europe, and APAC) and is available 24/5.
SMART by GEP is an annual subscription-based service priced on a function-by-function basis, largely according to the number of users of each function for each year of the contract. The different factors considered for pricing include number and type of users, interface languages, contract and template configuration requirement, and support services.

Puridiom

Puridiom is a provider of comprehensive Purchase-to-Pay software and services. The solution is easy to use, promotes self-service and best practice strategies, and offers full, auditable control over any spend category with support for multiple account allocations. In addition, the solution’s role and rule-based configuration engine can be customized to address industry-specific challenges and requirements.

Founded	1983
Headquarters	Camp Hill, PA
Other Locations	San Jose, CA; Arequipa, Peru; Mumbai, India
Number of Employees	48
Number of Customers	100+
Target Verticals	Insurance, Financial, Education, Entertainment, Energy, Retail, and many others
Partners	PGV Advisors, Sungard, Thakral One, Aegis Global, Informatica
Awards / Recognitions	SDCE Top 100; SDCE Pros-to- Know; Gartner P2P Quadrant

Purchase to Pay and Mobile Capability

Puridiom’s P2P suite includes automation for procurement, order management, invoice management, and supplier enablement. The procurement solution supports non-standard items, and internal, punch-out, and advanced catalogs. All catalogs can be associated
with contracts and maintain contract pricing, along with multiple price breaks. Advanced features include shopping lists, synonym searching, unique item attribute matching and filtering, side-by-side comparison, and a smart form builder for gathering additional data elements related to an item.
Once a purchase request passes validation, it is automatically routed to the appropriate approvers based on approval criteria and pre-defined business rules, then automatically converted to a Purchase Order upon approval. Suppliers can use the supplier portal to review order details and status, acknowledge orders and provide advanced shipping information, submit electronic invoices, and flip POs into invoices.

Puridiom’s receiving support gives end users, original requesters, or warehouse personnel the ability to acknowledge receipt of goods within the Puridiom system.
The solution facilitates communication with a client’s AP department to confirm the receipt of goods and to pass along any invoice matching exceptions and payment detail information. Puridiom can automatically perform 3- or 4-way matching of line item data using details from the order, receipt, and/or invoice voucher transactions. Any exceptions
are quickly identified and sent for additional review based on system- defined settings and business rules.
Puridiom’s P2P solutions can be accessed from any web browser or through native iOS and Android applications. With these applications, users can access the entire comprehensive P2P solution on the go. The solution is updated every quarter, and no additional training is needed to learn the mobile apps.
Puridiom uses industry best practice security measures, including data transmissions encrypted using SSL technology, role-based administrative access to sections and processes of the application, password management criteria, encryption of sensitive data using a
key-based algorithm, and detailed transactional audit history. Puridiom also uses two-step authentication to maintain security between a user’s mobile device and the main system.

Implementation and Pricing

Puridiom implementations take an average of three months, while cloud multi-tenant implementation can be completed within one month. Puridiom provides administrative and user training focusing on the user’s business role within the organization, and training sessions are a combination of on-site, classroom-style training and online live webinars.
Puridiom provides online help desk support from 8 AM to 8 PM EST, Monday through Friday, with 24-hour support services available as
a premium option. For cloud deployments, technical infrastructure support is provided 24×7.
Puridiom’s pricing structure includes a one-time implementation fee, a recurring subscription fee, and ancillary fees for any on-demand services as part of the company’s Procurement-as-a-Service partner program. This program includes Business Process Optimization, Supplier Enablement, Data Analytics and Benchmarking, Category Expertise, Supplier Enrichment Data services, and more.

SciQuest

SciQuest is a provider of cloud-based business process solutions that enable organizations to streamline their Source-to-Settle and Purchase-to-Pay lifecycles, capturing all spend in one platform. SciQuest’s Spend Management Suite covers spend analysis, supplier management, sourcing, contracting, eProcurement, inventory management, and accounts payable automation. SciQuest’s solutions can address any vertical market by offering flexible industry-specific functionality, content, and supplier connections. SciQuest leverages two decades of procurement solution experience to deliver value beyond savings in the form of streamlined workflows, transformed business processes, and better connected organizations.

Founded	1995
Headquarters	Research Triangle Park, NC
Other Locations	Pittsburgh, PA; Edmonton, AB; London, England; Hamburg, Germany
Number of Employees	500+
Number of Customers	550+
Target Verticals	Retail, Financial Services, Manufacturing, Petroleum, Pharmaceuticals, Utilities, Higher Education, Healthcare, and others
Partners / Resellers	Accenture, McKinsey, Deloitte, PWC
Awards / Recognitions	2014 PayStream Advisors P2P Technology of the Year; 2015 Spend Matters 50 Providers to Know; 2015 Inbound Logistics Top 100 IT Provider; 2016 World Procurement Awards Finalist

Purchase to Pay and Mobile Capability

SciQuest’s P2P solutions operate on one platform, providing a common user experience and a shared data model that eliminates up to 90 percent of data entry errors. This unified platform helps increase user adoption rates, the amount of spend under management, and purchasing compliance among clients’ internal teams.
The SciQuest Mobile App uses both native code and responsive application technologies. In addition to the shopping functionality, management users can perform approval actions such as reviewing contracts, supplier applications, requisitions, invoices, and purchase orders. Any required documents are sent to the device and can be reviewed within the app. The app uses push notifications to alert management to impending approval needs. In addition, the RWD
app also allows users to access supplier catalog interfaces and other procurement features via web browsers on any device.
SciQuest Mobile App users get a full shopping experience with the premium shopping and approval features of the web-based Spend Director. They also receive full access to hosted catalog items, non- catalog contract items and internal catalog items, and a fully functional catalog search with on-screen vendor comparison. Users can access real-time pricing with Mobile LivePrice, and receive important time- saving features, such as draft carts, a favorites folder, and requisitioner assignment. The solution’s Mobile Budget Check allows purchasers to ensure that they have sufficient budget prior to placing an order, and its Mobile Budget Impact delivers pre- and post-order reports for a specific orders.
SciQuest uses an OAuth2 token exchange to register users’ mobile devices. In order to maintain security, all communication is SSL- encrypted and the app is PCI compliant. Authentication and credit card information is never exposed or stored on the mobile device. Users must enter a password to access the app, and timeout sessions set on the desktop are respected in the mobile app.
Since the app mirrors all critical procurement features, there is no need for additional user training for mobile users. Major software updates occur three times per year, synchronized with SciQuest’s web solution updates. Minor updates are pushed to the App Store(s) as they become ready for customer use.

Implementation and Pricing

The mobile application requires no extra installation or training time during solution enablement and implementation. For new customers, typical implementation time is 4 to 12 weeks, depending on the functionality requested. SciQuest delivers standardized training
to customers’ internal trainers, who then train their entire user community. SciQuest can deliver additional on-site training as needed.
The SciQuest fee structure is set up with renewable SaaS licenses and initial implementation and integration services. The fee structure allows customers to pay only for the software and services they need. The mobile app is provided free of charge for current SciQuest solution subscribers.