Risks Of Sourcing Without Software
E SOURCING PLATFORMS
Technology has become integrated into every aspect of our lives and to ignore it is rapid advancements in the business realm can prove cost-heavy mistake. Manually processing source-to-pay can be both time consuming and inefficient practice for any operation, regardless of size. The risks of not utilizing software for source-to-pay solution can still be present in this digital age, however, C-suite executives are increasingly turning to software platforms to maximize performance.
Without suitable platform to manage the process, your business can find itself running into number of potential financial obstacles. The lack of automation and inefficiency can result in delayed or incorrect payments to suppliers and vendors, which can lead to credit risk and poor supplier relations. The absence of software system leads to deterioration of internal audit processes, meaning invoice and payment discrepancies can go undetected and result in late payment fees or supplier penalties.
A lack of control over the total payments process also leads to increased opportunity for fraudulent activities. Cybersecurity risks are higher when managing large sums of corporate money with manual practices. Additionally, traditional purchasing can lead to miscommunication between departments, leaving businesses exposed to further risks such as budget-related irregularities, unauthorized purchases or incorrect equipping or installation of purchased materials.
Though the short-term benefits are appealing, the long-term costs of relying solely on manual practices to conduct your source-to-pay operations can far exceed any perceived savings. To ward off financial risk and ensure your total payment process is secure, reliable software solution should be mandatory. Such software platforms contain range of capabilities, such as predictive systems to identify and stop fraudulent payments, automating time-consuming manual tasks to reduce overheads and improving data accuracy with automated validation checks.
Though platform software may come with an initial overhead, the capabilities offered from such solution are the key to reducing risk and saving your business money in the long run. Automating source-to-pay processes enables businesses to achieve cost and operational efficiencies, increasing business performance and helping identify fraudulent activities. C-suite executives, looking for software solution, should be wary of the risks associated by not utilizing source-to-pay platform, as the financial implications can be costly.
