Risks Of Skipping Source-To-Pay Software
E PROCUREMENT FEATURES
In the competitive global landscape, prudent financial executives will routinely seek new means of safeguarding their organizations’ fiscal interests and incorporating e-procurement technologies is no exception. Yet, doing so without the proper toolkit can, unfortunately, lead to administrative missteps that can culminate in myriad issues for public and private organizations alike.
For those unfamiliar, source-to-pay software denotes suite of solutions that are employed to facilitate e-procurement procedures and facilitate the workflow within business with regards to requisitions, invoices, and payments.
Without these solutions, organizations may find themselves unable to get complete picture of the entire supply chain process?paying particular attention to procurements and purchases. This lack of visibility may lead to unforeseen costs, somewhat counterintuitively, inefficiency and vulnerability to fraudulent activity, among others.
With regard to costs, those who have entirely eschewed e-procurement solutions are incapable of getting an enterprise-level image of the entire cost structure of an organization. This is because digital procurement solutions allow executives to make data-driven decisions by obtaining data from multiple entities, thereby more accurately assessing the cost of each supply chain component.
Moreover, if an organization does not employ source-to-pay solution, then manual labor will be necessary to extract essential data points (requisitions, for instance) from documents. That said, manual labor does not permit organizations to be as agile as those enabled by automated digital solutions.
Further, proactive analysis is far more complicated to perform when e-solutions are not incorporated, as extracting the necessary data is too cumbersome on the timescale that executives of various stripes might prefer. Once again, this can lead to costly missteps both in terms of time and money.
Moreover, there is also the security component that is of utmost import. While having manual processes as opposed to digital processes can be associated with greater fee transparency, it also comes along with trove of security issues that can range from malicious activity, to identity theft, to faulty accountability.
Lastly, with numerous organizations relying on vast pool of vendors, it becomes even more necessary to implement source-to-pay software to ensure that all of these parties adhere to the necessary regulations and that organizations can reduce the risk from vendors being potential security risk.
In conclusion, it is worth noting that organizations of all sizes and orientations can benefit from e-procurement software for myriad reasons. By incorporating such suite within its purview, organizations can reap the multitude of advantages associated with the function, rather than subjecting itself to the numerous pitfalls dropped at its doorstep by having it absent.
