Cash Is King

CHAPTER 2Procure‐to‐Pay

Procure‐to‐pay (PTP) are the processes involved in purchasing. PTP receives a great deal more attention than order‐to‐cash (OTC) in most businesses. Both are important, but PTP tends to get more attention because nothing gets made without materials. And all eyes are on procurement to find ways to source cheaper components. This is the task every day for procurement professionals: find more effective and efficient ways to supply materials to the business. Most procurement departments are always under the gun, dealing with supply chain disruptions, negotiating better pricing, and making sure production lines are not idled for lack of input materials. But the decisions procurement makes every day can greatly affect the balance sheet.

Owens has been in accelerated growth mode, introducing new products and increasing the number of customers they serve. They are also not immune to the many supply chain issues affecting businesses all over. With growth comes pressure to keep up.

The chief procurement officer at Owens is a long distance runner named Jeremy. He has one speed—fast. It's unclear if his job caused him to be this way or if this job was the perfect fit for someone already hyperkinetic.

It's 8 a.m. and Jeremy is already on his third cup of coffee when Bob and Carol walk into his office. Jeremy has a habit of cutting people off mid‐sentence and answering questions before the speaker finishes forming them. It's as if every second counts in his world. ...