Maximizing Operational Performance With Source-To-Pay Vs. Procure-To-Pay
Source-To-Pay Vs Procure To-Pay
business require greater efficiency to remain competitive and profitable in todays global market. This includes optimizing their Source-to-Pay (S2P) and/or Procure-to-Pay (P2P) process for Accounts Payable (A/P). Efficient accounts payable automations software holds the key to enabling business to realize an improved operational performance in these processes.
In large organizations, the S2P vs P2P processes form an essential part of the A/P operations. The complexity and size of these operations could have direct bearing on the organizations cost, value and overall performance. According to some research sources, nearly half of the total payments happen outside the P2P process. Therefore, they are not captured in the accounts payable system, making it difficult to trace and control them. This can lead to errors and other operational issues that reduce the overall efficiency in the process. It is very important to make sure that these processes, particularly S2P and P2P, remain as efficient, automated and secure as possible.
By deploying the right accounts payable automation software, business can not only stay compliant by staying on top of regulatory and other industry changes, but they can also enable the visibility and control of all payments. This can result in achieving cost savings, automating processes for improved visibility and reducing manual efforts for improved cash usage and organizational profitability.
Accounts payable automation software can help maintain operational agility in the continually changing finance dynamics. The system must also support automation of manual activities and management of the entire A/P system that includes payment execution and vendor management. Automated processes such as credit management, payment processing, supplier invoice management, and efficient communication channels with vendors, partners and banks should be provided. Further, the software must support data retrieval and use for other informed decision-making activities.
By making sure that the accounts payable automation software is employed in an efficient manner, there can be reduction in manual efforts, ensuring heightened visibility and control of the process. This will help maintain faster processing and also do away with challenging reconciliation and audit requirements.
To avoid one-size-fits-all solution, custom tailored accounts payable automation system should be selected that is suitable to the organizations size, industry verticals, and the dynamics of their A/P process. By implementing the payment execution and vendor management software in an optimized manner, it is possible to gain better control over the process and realize greater operational efficiency.
There is strong relationship between organizational performance and efficient P2P, S2P and other A/P processes. By deploying the right accounts payable automation software, it is possible to have greater visibility and control, reduce manual efforts and ensure that the entire process is secure. This translates into an enhanced operation performance for the organization in the long run.
