Neglecting Cloud Procurement Software: An Inescapable Risk
Cloud Procurement Software
As ever-growing global business operations have become increasingly interconnected, the risks surrounding efficient procurement have exponentially risen along with them. The sheer volume of incoming and outgoing goods and services together with their associated contracts can require substantial resources in order to be managed adequately. Cloud-based source-to-pay procurement software has made considerable inroads in streamlining these labor-intensive processes and unlocking opportunities for value addition. However, the failure to employ such software can be an immense source of exposure for organizations if left neglected.
Financial executives have variety of goals such as cutting costs, optimizing performance, gaining competitive advantage, and simplifying operations that they must consider when determining how to manage the sourcing and contracting process. By neglecting to consider the use of cloud-based Source-to-Pay (S2P) software, executives are incurring quantifiable risks that could be catastrophic in the long run.
One of the most important aspects of any procurement process is governance. Companies risk delegating too much control, creating conflicts of interest, and fostering an environment where data security or disclosure are of lesser concern. Adopting an S2P solution mitigates these issues, providing an organizational overview and strategies that facilitate more structured, disciplined approach. The system provides complete visibility across the sourcing ecosystem, enabling better decisions to be made by financial executives.
In addition, the use of cloud-based S2P software provides quality assurance and compliance. Without the platform, organizations may run the risk of noncompliance, resulting in penalties and fines from regulatory authorities. The platform simplifies the complexities of procurement law and regulations, ensuring that companies are up to date on the latest requirements as they emerge.
Companies also risk inaccurate data due to lack of automation. Data can be incomplete, lack accuracy, or can require manual updating. Automated S2P software allows for more depth and insight into the data, providing platform which detects and corrects errors, reduces inaccuracy, and automates manual tasks. The platform also reduces the manual effort required in approving requisitions, ordering, and payment, decreasing manual labor intensive tasks, ultimately creating cost savings and freeing up resources.
Overall, not investing in S2P software carries significant risk in terms of strategic, financial, and legal implications. Companies are risking missed opportunities while exposing themselves to compliance and data accuracy issues. The potential to reduce manual effort and accelerate compliance holds immense potential, and should be strongly considered by financial executives as prudent cost mitigating measure.
