Accelerating Operational Efficiency with Source-to-Pay Software

The need for enterprises to utilize technology to perform routine tasks to accelerate their operations has become increasingly evident in recent years. The optimization of resources has become pivotal in order to cut costs, increase efficiency and to help maintain a competitive advantage in the market. Source-to-Pay software (S2P) is one such technology that assists organizations in optimizing their approach in managing the procure-to-pay cycle.

From a C-suite perspective, an effective S2P system contains multiple components that are designed to provide value by improving accuracy, visibility and efficiency. This may include spend controllers that handle the invoicing and accounts payable systems, allowing appropriate checks to be made before payment is transferred. Additionally, S2P systems typically house requisitioning and cataloging features that allow organizations to build supplier profiles and create vendor contracts. This type of automation ultimately reduces manual labor and minimizes errors in the procurement cycle.

Furthermore, organizations should also look at deploying analytics within their S2P systems. This helps to gain deeper insight into spend activities, track spend trends and makes forecasting easier. These findings can be used to identify new opportunities and further reduce or eliminate low-value spend. By installing well-crafted analytics, executives have near real-time visibility into vendor relationships, costs, savings and unprecedented amounts of data that can be used to improve supplier relationships and make well-informed decisions.

Another desirable feature is automated workflows. This provides organizations with the means to speed up their procure-to-pay cycle, ensure that payments are made in due time, and track compliance with purchasing and audit policies. Automation minimizes the need for manual activities and reduces overhead costs for companies looking for ways to optimize their resources.

Finally, software systems can assist in risk mitigation and security. Sometimes these features will come part and parcel with the system, while at others the features may need to be added. Depending on the size and sophistication of the organization, access controls and user prohibitions must be in place to secure the data contained within the system.

Above, we have discussed just a few of the benefits which companies can realize by deploying S2P systems. From reducing manual labor and streamlining the procure-to-pay cycle, to mitigating risks and improving security, an effective S2P system can be a useful tool to improve operational performance and take an organization to the next level. Achieving this, however, requires the right platform along with sufficient resources for integration and deployment.