I’ll start by saying everyone implementing a P2P system should start the project using “The Carrot” approach described in the previous post.

This means at some point in the implementation (after the education and training has been completed and the system is live), you may need to turn up the heat and let people know you expect them to use the system.

Here are some tips:

• Remove other alternatives for end-users
  • Don’t allow end-users to call or visit the Purchasing Department to place orders.
• Don’t accept emails or paper Requisitions
  • Make sure you give end-users adequate warning (one month) and repeat the warning several times.
• Continue to help “technologically challenged” end-users until they grasp the system
• Integrate the use of P-Cards in your P2P system so the P-Card number becomes part of the order and can be used by the supplier for billing purposes
• Set lower limits on the use of P-Cards
  • Perhaps a $500 maximum would be appropriate.
• Let suppliers know that in order for them to get paid, they will need to have an authorized, valid PO Number on their invoice
  • One company went so far as to say to all suppliers that if they don’t see a PO Number on an invoice, “The next shipment is free.”

Another approach is to tell end-users if they don’t receive proper authorization before placing an order, their personal credit card will be charged when the invoice comes in.

All of these tactics are a bit heavy-handed, but can be necessary to get people’s attention.

Possibly the most effective method in “The Stick” is to have a Manager / Director / VP pay a personal visit to the worst offenders and ask them why they aren’t using the system. This has been used effectively by a number of our clients over the years, and provides a great motivation for the typical end-user.

So consider “The Carrot” first, followed by “The Stick,” after the system has been live for three to six months.

A great KPI (Key Performance Indicator) that many of our customers use is the number of “After-the-Fact PO’s” for each department. This highlights the number of invoices that are received where the Purchase Order is generated after the invoice is received. Many companies target and achieve less than 2% for this KPI. Since you “cannot control what you do not measure,” this type of measurement is essential to guarantee compliance and maximum spend under management.