ROI measuringHow can a procure-to-pay (P2P) solution help your business? When you automate your purchasing, accounting, inventory and recipe management systems, your bottom line is impacted positively. The core benefit of a P2P system is increased operating profitability. P2P reduces operating expenses by providing tools and automation to a complex process.

Calculating return on investment (ROI) from automating P2P is directly tied to the BirchStreet modules deployed and is measured by comparing the current costs of the business processes to the P2P costs post automation. The greater the amount of change from manual procedures to new automated processes will result in a shorter ROI. Based on our experience and anecdotal customer reporting, the minimum ROI delivered by the automation of P2P using BirchStreet is 3 to 9 months after the system Go-Live.

BirchStreet customers routinely report a reduction in direct expenses (OS&E and F&B purchases) in excess of 5% and AP labor reductions of 50% or more. All report immeasurable soft cost reductions and reallocation of resources.

The major drivers of the cost reductions, by module, are listed below:


  • Compliant approval workflow and reporting on non-compliance
  • Integrated checkbook provides accountability and transparency
  • Catalog management provides accurate pricing and reporting
  • Catalog management reduces expenses from non-compliant suppliers and products
  • Significantly reduced time to conduct all purchasing activities, including approvals and receiving
  • First time accuracy of GL coding reduces time to code and correct after the fact
  • Transactional reporting provides immediate business intelligence to drive savings
  • Reduction of paper and supplies


  • Reduces the time to receive, open, file, match, code, approve and process invoices

AP 3-Way Automation and Integration

  • Reduces time to process, match, code, correct and approve invoices
  • Reduces postage and supplies

Inventory Control

  • Automation of planned purchases improves accuracy and reduces waste
  • Reporting identifies recurring variances by product to reduce loss
  • Take Inventory reduces time
  • Automation of planned purchases reduces time
  • Maintains perpetual inventories for live checking to improve accountability and reduce loss
  • Can integrate to POS for automating requisitions to reduce time and loss

Recipe Management System

  • Reduces waste
  • Provides costing tool in real time to allow pricing updates to menus
  • Provide ad hoc specials and banquet costing in real-time to avoid errors in pricing resulting in higher than desired food and beverage cost
  • Can integrate to POS to provide accurate theoretical food cost to manage food cost better and reduce waste, loss and cut down on errors.

When you combine all of these costs and how much change will occur from using manual to automated processes, typically companies will see an average of 5% to 15% reduction in costs (and sometimes more!). In addition to how each module will improve your business processes, there are additional compliance opportunities, which will contribute to even higher ROI.

Compliance – both internally and with suppliers – is another area that will greatly benefit your business, along with operational process improvements. Automating P2P provides clients with the tools to improve operational compliance, at the location level, as well as to corporate standard operating processes (SOPs). BirchStreet’s platform has the capability to increase efficiency, provide controls and compliance. All of these combined benefits contribute to overall business process improvements (BPI). Today’s most successful hotel and restaurant groups have shifted more profit to the bottom line by adopting automated P2P processes.

Why BirchStreet

BirchStreet is the only company that has designed a procure-to-pay system specifically for the hospitality industry. And, BirchStreet is the only company that can deliver unprecedented ROI while totally automating your company’s procure-to-pay process.

Contact BirchStreet Systems today to see how we can help you shift more profit to your bottom line by leveraging the power of automated Procure-to-Pay software. Request a personal demo today, email or call us at 949-567-7000 with any questions.

Click here to download or view quick ROI statistics on efficiency and savings.

Request Demo

WordPress Video Lightbox Plugin
Would you like a demo ?