The Undeniable Risk Of Not Using Source-To-Pay Software
E PROCUREMENT PROCESS STEPS
Finance Executives who are contemplating move to eProcurement may be considering foregoing purchase of source-to-pay software solution. While on the surface, this could save cost and effort, the consequences of choosing to not upgrade to the latest business intelligence enabled workflow automation software will be considerable. As evidenced by some of the industry’s most successful companies, the use of technology enabled sourcing and purchasing is becoming table stakes for those competing in the global marketplace.
The primary benefit of using automated requisitioning and purchase order generation systems is, of course, the increased accuracy. Without quality control checks, errors can creep in and increase risk across all areas of financial management, from budget planning to cost control. Additionally there are several opportunities that are lost when manual systems are used.
As processes become more complex and regulations more demanding, manual methods are often ill equipped to accurately and quickly keep up. Compliance risks become very real and penalties can be increasingly stringent with any purchase process failure. Penalties waste time, effort and money so it is in the best interest to have product that helps promote compliance instead of creating barriers along the way. source-to-pay software solution can cover not only compliance programs such as conflict minerals, US spend, global policies, collective bargaining support and supplier sustainability but also additional features to make sure the right ordering processes are in place, preventing any misdirections or breaks.
Security is also of the utmost importance when considering deployment of purchase order automation. Companies which put in place software for the purpose of eProcurement will have the assurance of built-in system access controls and secure data encryption. Without these, there can be deep and damaging breaches. Lastly, the efficiencies resulting from automation can drive costs down, as system upgrades can be continuously made without manual intervention or disruption to service.
In conclusion, the use of source-to-pay software is critical component for corporate efficiency, accuracy, compliance and security. Companies that choose to forgo the investment in this technology will be at competitive disadvantage in the global marketplace, as those who have diligently implemented automated procurement will be able to do so with greater speed and accuracy. Furthermore the risks of not upgrading their processes becomes increasingly significant, both in terms of financial risk and possibility of non-compliance sanctions.
