Purchasing Transformation Through Source-To-Pay Software: Risks Of Not Adapting
DIGITAL PROCUREMENT TRANSFORMATION
In world where digital transformation is fast becoming integral to businessesuccess, reliance on clunky manual processes for purchasing is risk companies cannot afford to take. With cyberthreats becoming ever more sophisticated, not investing in secure cloud-based source-to-pay (S2P) software can prove to be costly mistake for any organization.
S2P software helps companies to deliver transparency and agility in their purchasing by automating labor-intensive manual processes. Leveraging integrated S2P technology enables organizations to dramatically reduce their procurement audit risk and streamline their purchasing process.
Those who fail to undertake digital transformation through S2P software will be increasingly unable to compete with those who do. Experts estimate that by 2022, 90% of Fortune 500 companies will have embraced digital procurement practices in some way.
By relying on manual, paper-dependent procurement processes, companies risk putting their confidential business data at risk of breach by unsecure networks and may also become the target of cyber-attacks due to dubious financial practices. An additional risk not factored in by those who remain unexposed to S2P technology is the loss of purchasing power due to late payments and lack of visibility into pricing.
C-Suite executives should also consider the implications of inadequate tracking and audit capabilities. Without access to an automated audit trail, companies are at an increased risk of incurring unnecessary late fees, fumbles in compliance and miscalculation of taxes. Ultimately, if shipping delay leads to late delivery, the company may not be able to recover the costs.
According to the Aberdeen Group, 81% of companies already use integrated S2P software, and those who do can reduce cost-per-invoice and cycle time by up to 17%. Furthermore, they can obtain up to 23% reduction in non-paymend related issues.
Organizations have wealth of options to choose from when considering S2P software, current market trends dictate that C-Suite executives explore purchasing solutions which facilitate real-time decision making through actionable analytics and automated workflow.
In summary, failure to adopt S2P technology could bring serious consequences to an organizations purchasing departments, including hefty compliance penalties, greater risk of fraud, cybersecurity issues and difficulty competing with those that do have technology. Companies have the potential to unlock major savings and improve efficiency that comes with taking advantage of the range of S2P solutions currently available.
