Transforming Operational Performance Through Source-To-Pay Software
SOURCING IN PROCUREMENT
Source-to-pay software holds the promise of dramatically increasing operational efficiency and improving overall financial performance. Procurement organizations, particularly in the corporate sector, require modern technology solutions that ensure efficient and effective practices throughout their process. This article sheds light on how source-to-pay software can play an integral part in companies effort to drive higher returns and improve their position in the marketplace.
From C-Suite perspective, many questions must be asked for suitable platform to be identified. These questions largely revolve around ascertaining the need for implementation, configuring the platform to fit the organizations specific practices, and determining the resulting financial benefits.
Beginning with the essential question of ?Why adopt source-to-pay software??, the major advantage of such technology comes through automation of manual processes, thereby eliminating the need for staffing large procurement teams. This automation allows the finance executive to focus their time and resources on optimizing the organizations sourcing processes, while having increased visibility over supply chain risks with more powerful analytics. Moreover, contracts can be managed digitally, with data-driven insights to ensure purchasers are aware of the best value of goods and services from suppliers.
This same automation ability supports increased collaboration among stakeholders, enabling line-of-sight monitoring of sourcing plans and eliminating the need for redundant or disconnected systems. Automation also improves compliance, as the platform integrates any government regulations and protocols into the process, streamlining contract management and mitigating risk.
Configuration is particularly important for finance executives evaluating source-to-pay software. To realize the full benefits of such system, the executive must ensure the chosen platform is configured and optimized to fit their organizations exact needs and practices. Achieving this is largely function of having sufficient knowledge across functions and executives, and making sure responsibilities are appropriately assigned within the procure-to-pay process.
The last step in the evaluation is determining the potential financial gains of source-to-pay system. Generally, these savings arise from managers gaining better control and visibility into their organizations spend, leading to reduced fraud and waste. Additionally, the automation capability comes with improved accuracy and speed, as machine learning technology searches for the best deals from suppliers throughout the sourcing process. Greater visibility also eliminates the need for reconciliation and paper-based audits, while simplifying negotiations with suppliers.
Highly aware of the need to maximize financial returns and gain an advantage in the competitive business environment, finance executives should seriously consider the idea of implementing source-to-pay software. Only with comprehensive knowledge regarding the potential benefits and challenges of such system, proper configuration and optimization, and consideration of potential financial gains can the full potential of the technology be realized.
