Strategizing Software Spend Management Using A Source-To-Pay Solution


From the average day-to-day running of any business, software spend management is undoubtedly complex and arduous task. When it comes to the expenditure side, there needs to be comprehensive system in place to monitor and maintain transparency and accuracy. This can be achieved through methods such as using source-to-pay (S2P) solution for your software spend management.

S2P solutions have been designed to simplify the process of sourcing, buying and paying for software within an enterprise. The solution end-to-end integrates the entire procurement process from the vendor selection, purchasing, and expenditure settlement as well as managing and optimizing the entire expenditure cycle. Ultimately, the goal is to maximize the return on investments for an enterprise’s software procurement.

An S2P solution helps you keep vigilant eye on the budget and spending issues, quickly identifies risks in the purchasing process and takes preemptive steps to reduce those risks. In addition, it helps you accurately track which software licenses you?re using and when they will expire. This allows executives to benefit from improved data and analytics, control and accountability over the software budget, better forecasting and smarter procurement decisions.

Here is step-by-step guide on how to use S2P solution for software spend management.

1. Compile Comprehensive Overview of the Entire Procurement Process

Before you begin streamlining your software procurement process with an S2P solution, you must gain thorough understanding of spending habits and the lifecycle of current software. This requires the evaluation and documentation of an enterprise software footprint including what hardware and software are your business needs. This also involves capturing regional differences including which vendors and contracts are used.

Compiling this data can be laborious; it is important to take the time to identify all areas of potential savings. After improved visibility into your software spend is compiled, it can be used as guide as you evaluate and select new S2P tools and services.

2. Design and Implement the Right S2P Process

The design of any S2P process should respond flexibly to changing demands. When designing process, consider how quickly the process can adapt to procurement and budget updates. Also, consider how the software will progress with increased automation, providing the capability to integrate support services to cover contract management, supplier management and compliance and expand easily to cover all of the companies software asset management.

It is important to think beyond the usual S2P processes and institute an internal risk mitigation plan to ensure consistent control and visibility into enterprise software spend.

3. Leverage Your Partners

Similar to other projects, it is important to involve vendors, suppliers and other stakeholders early on in the process of bridging from existing spend management to leveraging the potential of an S2P solution. This important step can provide the opportunity for those individuals to receive training and education about the new system.

Leverage the right partners, gain their commitment and ensure continued communication. For long-term success, nurture the relationships with business partners.

4. Implement the S2P Solution

Once the new S2P solution is selected and the process designs are finalized, you are ready to move forward with the implementation. Ensure the training of all users and build-in testing throughout the process. Regular check-ins should be held to ensure everything is being implemented on timeline and as designed.

5. Analyze and Upgrade

Analyze the data that S2P solution is providing to learn about the effectiveness of the implemented process. Review the data and make recommended adjustments to both the process and technology to maintain and enhance value.


Software spend management requires single integrated process to ensure complete visibility and control over the purchasing, budgeting and lifecycle support processes. source-to-pay solution allows procurement managers to gain an edge on their software spend management while reducing manual efforts and errors.

By streamlining the sourcing, purchasing and paying processes through single platform, procurement can focus more on supplier relationships, compliance, risk and other strategic endeavors. Executives will appreciate improved analytics and forecasting as well as better control and transparency over software budgets.

With proper planning and implementation, an S2P solution can be great tool to strategically manage the software spending of any enterprise.