November 16, 2023

Purchase To Cash: When central administration becomes a supplier for retailers

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The concept of Purchase to Cash (P2C) is a central component in today's business world, especially when a central management unit becomes a supplier to its affiliated retailers. This type of business relationship is particularly common in franchise networks or cooperative groups of retailers. In this blog post, we look at the process chains of this model and explain why using the right SAP add-ons, especially Consult-SK GmbH's products, is essential for digitizing and optimizing these processes across departments.


Understanding the P2C model in central administration

In our scenario, a central administrative unit purchases products or services centrally and then sells them to its affiliated retailers. This approach enables the administrative unit to purchase larger quantities at better conditions and pass the benefits on to the retailers.


Process chain in the P2C model

1. central purchasing

The central administration acts as a buyer, purchasing products in large quantities from manufacturers or wholesalers. In this phase, price negotiations, supplier management and monitoring the supply chain are crucial. The more transparently all relevant documents can be found in the SAP system, the greater the potential for increased efficiency and cost savings. In particular, the prevention of maverick buying (buying outside the system) plays an important role here. 

2. product management and customization

After purchasing, the products may be customized according to the retailer's requirements. This may include repackaging, labeling or even minor modifications.

3. distribution to retailers

Finally, the central administration acts as a supplier by distributing the products to the retailers. This step includes order processing, logistics, invoicing and payment processing. In this context, it is often necessary to allocate or split an invoice, which in many cases is still done manually. Here, too, we have worked with SplitUpDebit a tool to speed up this process.


The role of SAP AddOns from Consult-SK GmbH

Consult-SK GmbH offers a range of SAP AddOnswhich have been specially developed to increase the efficiency and effectiveness of P2C processes.


Digitization and automation

The SAP AddOns enable comprehensive digitalization and automation of business processes. From ordering to delivery, all steps can be digitally monitored and controlled, leading to a significant reduction in manual errors and delays.


Improved transparency and communication

The use of these add-ons increases transparency throughout the supply chain. Retailers can track the status of their orders in real time, which leads to improved communication and collaboration.


Reducing costs and increasing efficiency

By automating routine tasks and optimizing stock levels, these SAP add-ons help to reduce operating costs and increase overall efficiency.


The purchase to cash model, especially in a structure where a central administration acts as buyer and supplier for a group of retailers, offers numerous challenges and opportunities. The use of specialized SAP add-ons, such as those from Consult-SK GmbH, can play a key role here. Not only do they enable seamless integration and optimization of the various process steps, but they also provide the flexibility and scalability to keep pace with the ever-changing demands of the market. In a world where efficiency and speed increasingly determine business success, such technological solutions can make all the difference.