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Strengthening the Procurement-to-Pay Process in the Natural Resources & Energy
Strengthening the Procurement-to-Pay Process in the Natural Resources & Energy
Authors: Dhanjith Shetty & Mehul Pandya
In the Natural Resources & Energy (NRE) sector, procurement is often the quiet engine that keeps large projects moving. Yet it can also be the single point of failure. A missed approval, a delayed payment, or an overlooked document can stop multimillion-dollar operations in their tracks.
Picture this: a shipment of specialist equipment is held at customs because the right paperwork was missing. Or a key supplier halts production after waiting months for payment. These are not rare exceptions. They are everyday risks in one of the most complex and demanding industries in the world.
At the heart of these risks lies the procurement-to-pay (P2P) process - the system that governs how companies source materials, manage suppliers and pay for services. In a sector built on global supply chains, strict regulation and high-value contracts, keeping this process efficient and compliant is a constant challenge.
Complex supplier networks: NRE businesses depend on vast webs of suppliers, each with its own terms and obligations. Staying on top of these relationships is demanding and mistakes are costly.
Gaps in oversight and compliance: Duplicate invoices, unauthorised spending and missed regulatory requirements quietly drain resources and erode trust. These risks grow when teams are stretched and working with limited visibility.
Fragmented and manual processes: Too many organisations still rely on spreadsheets, email chains and disconnected systems. The result? Errors, bottlenecks and delays.
Strained supplier relationships: Late payments or inconsistent communication damage trust and reliability. Once strained, supplier relationships can slow projects and disrupt supply chains.
Rising regulatory and ESG expectations: Procurement is no longer just about cost and timelines. Companies must now meet higher standards around governance, sustainability and transparency.
Strengthening P2P requires more than new software or updated policies. It calls for a strategic, end-to-end approach. Leading organisations are taking practical steps such as:
When well-designed and well-governed, the P2P process becomes more than a safeguard. It becomes a competitive advantage.
As organisations across the sector rethink their operations, one question stands out:
How is your business reshaping procurement to stay ahead in a complex and demanding industry?
At BDO UAE, we work with Natural Resources & Energy companies every day to explore these challenges. Together, we help them strengthen procurement and turn it into a true driver of value.
CONTACT OUR TEAM
Sector - A proactive approach to assurance
In the Natural Resources & Energy (NRE) sector, procurement is often the quiet engine that keeps large projects moving. Yet it can also be the single point of failure. A missed approval, a delayed payment, or an overlooked document can stop multimillion-dollar operations in their tracks.Picture this: a shipment of specialist equipment is held at customs because the right paperwork was missing. Or a key supplier halts production after waiting months for payment. These are not rare exceptions. They are everyday risks in one of the most complex and demanding industries in the world.
At the heart of these risks lies the procurement-to-pay (P2P) process - the system that governs how companies source materials, manage suppliers and pay for services. In a sector built on global supply chains, strict regulation and high-value contracts, keeping this process efficient and compliant is a constant challenge.
Where the pressure points are
Complex supplier networks: NRE businesses depend on vast webs of suppliers, each with its own terms and obligations. Staying on top of these relationships is demanding and mistakes are costly.Gaps in oversight and compliance: Duplicate invoices, unauthorised spending and missed regulatory requirements quietly drain resources and erode trust. These risks grow when teams are stretched and working with limited visibility.
Fragmented and manual processes: Too many organisations still rely on spreadsheets, email chains and disconnected systems. The result? Errors, bottlenecks and delays.
Strained supplier relationships: Late payments or inconsistent communication damage trust and reliability. Once strained, supplier relationships can slow projects and disrupt supply chains.
Rising regulatory and ESG expectations: Procurement is no longer just about cost and timelines. Companies must now meet higher standards around governance, sustainability and transparency.
What leaders can do differently
Strengthening P2P requires more than new software or updated policies. It calls for a strategic, end-to-end approach. Leading organisations are taking practical steps such as:
- Mapping the supply chain regularly to identify critical suppliers and reduce surprises.
- Embedding controls early with automated approvals and invoice matching to reduce errors and fraud.
- Using data to drive decisions by analysing spend patterns and supplier performance.
- Aligning procurement with compliance and ESG goals from the outset.
- Fostering open supplier relationships through clear communication and timely payments.
A mindset shift
Resilient NRE companies do not treat procurement as a back-office function. They see it as a strategic enabler that supports faster project delivery, stronger supplier partnerships and financial integrity.When well-designed and well-governed, the P2P process becomes more than a safeguard. It becomes a competitive advantage.
The question for leaders
As organisations across the sector rethink their operations, one question stands out:How is your business reshaping procurement to stay ahead in a complex and demanding industry?
At BDO UAE, we work with Natural Resources & Energy companies every day to explore these challenges. Together, we help them strengthen procurement and turn it into a true driver of value.
CONTACT OUR TEAM