Systems Integration and Information Flow in the Procure-to-Pay Process

An Industry Survey of Mechanical, Electrical and Plumbing (MEP) Contractors in the USA

Improvements in technology and supply chain management can significantly increase productivity in the construction industry, particularly among mechanical, electrical and plumbing contractors. These contractors typically have complex procurement requirements and deal with a large number of specified material components, which are often sourced from a variety of suppliers or manufacturers.

However, software systems and data flow intended to manage these components remain disconnected, contributing to an industry-wide productivity lag. 

This study, conducted by Carnegie Mellon University, identifies the following areas affecting the MEP procure-to-pay process. Improvements here could help construction firms save money and improve productivity:

1. Information systems used during phases of the P2P process 
   
2. The state of integration between systems and data during the P2P process 
3. Contractors’ approaches to procurement (roles and responsibilities) and their perceived efficiency
4. The level of electronic data interchange (EDI) between contractors and their suppliers
5. The efficacy of reporting generated by the data accumulated during the P2P process