Implementing A Source-To-Pay Software: Assessing The Risks
Define Sourcing
Organizations that do not leverage technology for the source-to-pay process are exposed to host of risks, from rising costs to an impaired ability to secure deals as well as greater susceptibility to fraudulent practices. Finance executives need to assess these risks versus the benefits of implementing source-to-pay software to ensure lasting success and positive growth.
The source-to-pay process includes activities set upstream of procurement, such as strategic sourcing, tendering, and negotiation. If organizations lack source-to-pay software, they may not have visibility into their supply chains or the ability to track, plan, and manage demand. This can lead to inefficiency and higher costs. The need to pay more than the market value and ambiguities in delivery may result.
In order to maintain relationships with suppliers and meet contractual commitments, having access to critical supplier data is vital. Source-to-pay software boasts range of features designed to capture this data and prevent compliance issues. This software also provides quick and timely access to buyer and supplier data, allowing potential negotiations to take place quickly and seamlessly.
Having an efficient and integrated source-to-pay process can also reduce errors in payment processing. Without the requisite software analytics, accurately capturing data points, such as discounts and approvals, becomes hard. Integrating them into the payment process is nearly impossible without technology such as source-to-pay software.
Apart from reducing mistakes, source-to-pay software can guarantee safety in payment authorizations and secure control of payment activities. This is especially important if the organization outsources payment requests to third-party providers. Gaining and maintaining oversight of payments related activity can also be made easier through source-to-pay software.
Ultimately, the absence of source-to-pay software in the supply chain process puts an organization and its finances at risk. Inefficiencies and non-compliance are likely to occur. Thus, finance executives must accurately weigh these risks against the benefits of source-to-pay Softwaresolution. By deploying such software and carefully integrating it into their existing processes, organizations can reduce costs, ensure safety, and increase operational efficiency.
