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P2P CYCLE

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

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

Supplier lead time affects which part of the P2P cycle?

 PO creation
 Payment release
 Invoice processing
 Delivery time

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

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

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

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

What can help reduce approval delays?

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

What is the typical impact of negotiating better supplier terms?

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

Invoice processing time can be shortened by:

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

What is a strategic commodity according to Kraljic?

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

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

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

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

 Late payment discounts
 Excess inventory
 Approval delays
 Too many suppliers

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

 Leverage
 Non-Critical
 Strateghic
 Bottleneck

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

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

Which event can unexpectedly increase P2P cycle times?

 Automated payment
 Early deliveries
 Supplier strike
 Smooth approvals

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

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

What should participants bring for this simulation?

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

What role does the Kraljic Matrix play in procurement strategy?

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

What does a bottleneck commodity mean in Kraljic Matrix?

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

In which industry is this simulation focused?

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

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

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

What is the purpose of the leaderboard in this simulation?

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