Tackling Maverick Spending With Source-To-Pay
MAVERICK SPENDING DEFINITION
In many successful organizations, effective financial management is cornerstone of success. This is accomplished in part through the intelligent use of source-to-pay solutions software or platforms that automate the manual, time-intensive tasks traditionally associated with procurement. Maverick spending, or financial outlays that are not closely supervised, can be strain on corporate resources and have potential long-term impacts on the financial well-being of the corporation. However, with well-conceived source-to-pay solution, organizations can ensure that maverick spending is minimized and compliance is closely monitored.
At fundamental level, every source-to-pay solution is focused on streamlining the procurement process in order to increase efficiency and reduce costs. Features like budget compliance, requisition authorisation, and vendor management are key to making sure that financial outlays only occur when there has been authorisation and compliance with established company policies. This is especially the case when it comes to controlling maverick spending.
For corporate leaders looking to get handle on maverick spending, the source-to-pay solution offers number of distinct advantages over more traditional manual methods. The first is the ability to track expenditure and authorisation in real-time. This ensures that corporate purchasing policies are followed at all times and allows leaders to take corrective action quickly, if required. Moreover, the use of automated processes can significantly reduce the time for requisition authorisation and contract negotiations minimising the number of occasions on which unauthorised purchases are made. Automating the process also makes it isimpler to audit expenditure and ensure that there is accountability for all invoices and expenses.
In addition, source-to-pay solutions come with wealth of additional features such as advanced analytics capabilities, integrated invoicing processes and data-driven vendor insights. This enables companies to gain better understanding of supplier behaviour, assess where rewards and strategies can be used to effectively negotiate lower prices, and identify cost saving opportunities. Companies can also use the data available in source-to-pay solutions to predict procurement-related trends and inform long-term strategy.
A final benefit of source-to-pay solutions is how they can achieve value beyond just reducing the costs associated with maverick spending. Fully integrated source-to-pay systems can drive deeper collaboration between departments and across the organisation. These close-knit working relationships enable teams to more effectively identify and act on opportunities as they arise.
By leveraging the full capabilities of source-to-pay solutions, companies can gain greater visibility into procurement processes and more effectively control maverick spending. Furthermore, they can achieve greater return on procurement investments, through enhancements to negotiation and invoicing, and build stronger relationships across their organisation. With the maverick spending problem addressed, organisations can take their financial management to the next level and enjoy long-term success.
