Risks Of Ignoring Source-To-Pay Software


For many companies, the procurement and payment process is an essential part of doing business. However, manual and largely paper-based system is ill-suited to the modern business landscape, with costs and inefficiencies taking toll on the bottom line. An automated system that streamlines the entire procure-to-pay process is must for all forward-looking organizations, and taking the plunge in source-to-pay software is the best way to facilitate, manage, and simplify the process.

Finance executives tasked with optimizing the procure-to-pay process must understand the risks of ignoring software-enabled services, as outdated methods create points of risk that can be mitigated with automation. The cost of manual processes can be significant, and they will not give organizations the control they need to drive process improvements or to ensure compliance with contractual terms. Furthermore, manual data entry and document management cannot possibly keep pace with regulatory changes, or the growth of business.

Without source-to-pay software, information is lost in the system. Centralized views of vendor information and contracts, item pricing, invoices, and payments are not possible. This makes it difficult to accurately forecast, budget, and analyze disruptive events. Organizations must be able to diagnose any issue quickly and make informed decisions about how to adjust spend and supplier relationships.

Software-enabled services also speed up the procure-to-pay cycle. With automated processes and reporting, finance executives can make sure that procurements are easy to manage, audit and control. By streamlining the entire process, organizations can reduce the amount of time it takes to complete purchase from request to invoice payment. This helps to improve supplier relationships through improved prices, credit terms, and relationships.

Software-enabled procurement tools are also key for taking full advantage of contract agreements, ensuring that money is not wasted on overspending items. Real-time supplier performance metrics also allow companies to get visibility into the delivery and customer service of their suppliers, enabling them to make an informed decision before entering into or renewing contract.

The risks of not using software-enabled source-to-pay technology are substantial, and organizations that do not take the plunge could find themselves disadvantaged in the competitive landscape. Manual processes take toll on the bottom line and cannot keep up with evolving regulations and trends. Automated processes enable organizations to accurately budget and forecast, and enable them to take full advantage of contract agreements to secure better prices, terms, and delivery. They also provide real-time performance metrics that fertilise the relationships between buyers and suppliers. When it comes to procure-to-pay, not investing in the right sources-to-pay software ultimately means losing out on both time and money.