What is P2O?

P2O, or Procure to Order, represents a manufacturing process within the business landscape. In this approach, materials or components are not acquired or purchased until a customer order or forecast demand for the particular finished product is confirmed.

The P2O model aligns procurement activities closely with customer demand, ensuring that resources are acquired precisely in response to orders or anticipated requirements. This dynamic strategy enhances operational efficiency by minimizing excess inventory and streamlining the production process to meet specific customer needs.

Learn more about Ivalua’s Procure-to-Pay solutions.