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P2P CYCLE

Invoice processing time can be shortened by:

 Manual entry
 Automating invoice matching and approvals
 Increasing supplier numbers
 Delaying payments

Which KPI measures the time taken from PO creation to invoice payment?

 Purchase order lead time
 Invoice cycle time
 Overall P2P cycle time
 Approval time

Why is cross-functional collaboration important in reducing P2P cycle times?

 To increase paperwork
 To align stakeholders and reduce delays
 To hire more suppliers
 To increase approvals

What should participants bring for this simulation?

 Random documents
 Their favorite book
 Company logo
 Historical procurement data of their commodity

What is the purpose of the leaderboard in this simulation?

 To track team performance on KPIs
 To display sponsors
 To show attendance
 To manage lunch breaks

What can help reduce approval delays?

 Ignoring approval processes
 Streamlining workflows and digital approvals
 Hiring more staff
 Increasing paperwork

Supplier lead time affects which part of the P2P cycle?

 PO creation
 Invoice processing
 Delivery time
 Payment release

Which of the following is a common bottleneck in the P2P cycle?

 Excess inventory
 Late payment discounts
 Approval delays
 Too many suppliers

What topic is best covered after this simulation on P2P Cycle?

 Marketing strategies
 Basic Accounting
 Supplier Relationship Management and Digital Procurement Tools
 Logistics planning

What is a strategic commodity according to Kraljic?

 Low value, high volume
 Easily substitutable
 High value, high risk
 Low risk, low impact

What is the typical impact of negotiating better supplier terms?

 Increased prices
 Poor quality
 Longer lead times
 Improved delivery times and cost savings

What is one expected outcome after this simulation on P2P Cycle?

 Improved understanding of P2P cycle management
 Unclear roles
 Higher cycle times
 Increased supplier complaints

What is the main goal of measuring KPIs in the P2P cycle?

 To delay payments
 To increase purchase volume
 To punish suppliers
 To identify bottlenecks and improve efficiency

What does a bottleneck commodity mean in Kraljic Matrix?

 Non-critical
 High risk, low impact
 Easily replaced
 Low risk, high volume

Which event can unexpectedly increase P2P cycle times?

 Automated payment
 Smooth approvals
 Supplier strike
 Early deliveries

In which industry is this simulation focused?

 Process Industry (PVC, Energy, Fertilizer, Mining)
 FMCG
 Software Development
 Retail

What role does the Kraljic Matrix play in procurement strategy?

 It defines employee roles
 It classifies suppliers based on risk and impact
 It determines company profit
 It schedules deliveries

Reducing the P2P cycle time primarily improves which of the following?

 Cash flow and project delivery speed
 Supplier prices
 Number of suppliers
 Employee satisfaction only

What is the typical sequence of the Procure-to-Pay cycle?

 Delivery → PO Creation → Invoice → Approval → Payment
 PO Creation → Approval → Delivery → Invoice → Payment
 Approval → PO Creation → Invoice → Delivery → Payment
 Invoice → PO Creation → Delivery → Approval → Payment

Which quadrant of the Kraljic Matrix represents items with high supply risk and high purchase impact?

 Bottleneck
 Non-Critical
 Leverage
 Strateghic