Maximizing Business Performance With Source-To-Pay Software
Maverick Spending Definition
Maverick spending, or unauthorized purchases, often account for significant portion of companies budget mismanagement. While this practice is still common in many organizations, large companies are beginning to recognize its costs and are looking for solutions to reduce or eliminate it. Using the latest source-to-Pay software is one way to increase operational performance by controlling maverick spending.
Source-to-Pay (S2P) is suite of technological tools that combines strategic sourcing, procurement, and supplier management into one comprehensive process. By providing end-to-end visibility, S2P enables companies to manage each phase of the sourcing and procurement process in one place. As result, companies can take advantage of cost savings, improve efficiency, and foster synergy among all departments involved in the purchasing process.
At the core of source-to-Pay technology is its ability to provide visibility and transparency throughout the entire purchasing process. By automating the process of identifying and tracking vendors, S2P systems help to keep suppliers informed and ensure their adherence to corporate policy. Organizations can set spending limits, create analytics to gain insight into their suppliers, and use machine learning algorithms to flag suspicious activity.
Besides improving vendor oversight, S2P software also helps companies to more effectively manage their purchasing decisions. By providing broad-based access to market data and analytics, Management can better select the best vendors, compare pricing, and select the most suitable suppliers for specific products or services. This data can also be used to negotiate better deals and ensure fair price.
When used to reinforce corporate control and coordinate multiple departments, S2P technology can help organizations reduce maverick spending. By providing data and insights into where money is being spent, it is easier for management to identify areas where spending is out of control. With that information, they can put controls in place to counteract the risks of maverick spending.
Companies that are serious about reducing and controlling maverick spending need to invest in Source-to-Pay technology. By automating the purchasing process, S2P helps ensure that organizations are in compliance with their policies and taking the best possible routes with their purchases. With comprehensive and cost-effective tool, companies can expect to see improved operational performance and increased overall cost savings.
