Procure to Pay

In the Procure-to-Pay (P2P) lifecycle, Smorgas AI Workflow Solutions serve as the "connective tissue" between procurement, receiving, and finance. While traditional P2P suites focus on digitizing documents, Smorgas AI focuses on decision-making and resolution. 

By treating the P2P cycle as a goal-oriented process rather than a linear sequence of steps, Smorgas can drive the following improvements:

The "Request to PO" Phase: Autonomous Requisitioning

Instead of employees navigating complex catalogs, Smorgas acts as a concierge:

  • Smart Categorization: Smorgas interprets natural language requests (e.g., "I need 20 laptops for the new interns") and automatically maps them to the correct GL codes, cost centers, and approved vendors.
  • Policy Enforcement: It checks the budget and internal policies in real-time. If a request is out of policy, the agent doesn't just block it — it suggests a compliant alternative (e.g., "This vendor isn't approved, but we have a contracted rate with Company X for similar items").

The "PO to Receiving" Phase: Proactive Expediting

One of the biggest gaps in P2P is the "black hole" between sending a PO and receiving goods.

  • Autonomous Follow-ups: Smorgas will track the "Expected Delivery Date." If no shipping notice is received 48 hours prior, it automatically contacts the vendor for an update.
  • Discrepancy Management: If a shipment arrives short or damaged, Smorgas can initiate the Return Merchandise Authorization (RMA) process and hold the payment in the ERP system until the replacement is confirmed.

The "Invoice to Pay" Phase: Cognitive Three-Way Matching

Traditional systems often fail to match when descriptions or units of measure differ (e.g., "Case" vs. "12-pack").

  • Semantic Matching: Smorgas AI uses reasoning to understand that "12x 500ml bottles" on an invoice matches a "Case of water" on a PO.
  • Dynamic Discounting: Smorgas monitors cash flow and vendor terms. It can autonomously decide to pay an invoice early to capture a 2/10 Net 30 discount if the cost of capital allows for it, maximizing "free" savings.

Master Data & Vendor Management 

Instead of employees navigating complex catalogs, Smorgas acts as a concierge:

  • Smart Categorization: Smorgas interprets natural language requests (e.g., "I need 20 laptops for the new interns") and automatically maps them to the correct GL codes, cost centers, and approved vendors.
  • Policy Enforcement: It checks the budget and internal policies in real-time. If a request is out of policy, the agent doesn't just block it—it suggests a compliant alternative (e.g., "This vendor isn't approved, but we have a contracted rate with Company X for similar items").

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P2P Evolution Comparison

Stage

Manual P2P

Automated P2P (RPA)

Smorgas

Requisition

Stage

Paper / Email forms

Manual P2P

Dropdown menus / Catalogs

Smorgas

Conventional / Intent-based

Matching

Stage

Human eye

Manual P2P

Exact string matching

Semantic reasoning & logic

Exceptions

Stage

Emailing back and forth

Manual P2P

Flagged for human review

Smorgas

Agent resolves with vendor

Payments

Stage

Batch processing

Manual P2P

Scheduled transfers

Smorgas

Value-optimized timing

The Business Impact of Agentic P2P

Transforming how high volumes and transactions are managed.

  • Touchless Processing: Moving from 30% to 90%+ touchless invoice processing by resolving minor discrepancies without human intervention. 
  • Capture of Lost Discounts: Eliminating late fees and maximizing early payment discounts. 
  • Reduced Procurement Cycle Time: Cutting the time from "need identified" to "order placed" from days to minutes.