What is the main goal of supplier monitoring in P2P processes?

The main goal of supplier monitoring in Procure to Pay (P2P) processes is to assess supplier compliance and performance. This involves systematically evaluating various aspects of supplier operations, such as delivery times, quality of goods or services, adherence to contract terms, and overall reliability. By focusing on compliance and performance metrics, organizations can ensure that suppliers meet the established standards and expectations, which is essential for maintaining a smooth supply chain and achieving organizational goals.

Monitoring supplier performance helps organizations identify areas for improvement, facilitate communication, and foster accountability among suppliers. This proactive approach not only enhances the value received from suppliers but also mitigates potential risks associated with supplier failures or inadequacies. By prioritizing compliance and performance, businesses can make informed decisions about supplier retention, improvement strategies, or necessary changes in their supply base.