The Dangers Of Not Using Source-To-Pay Software
CLOUD PROCUREMENT SYSTEM
Cloud procurement is complex process, so the risk of not using specifically designed software for it is especially high. While cost-effective financial leaders must decide which processes to streamline with technology, source-to-pay systems are indispensable tools that automate various aspects of procurement. From buying and paying to analyzing and managing, these systems are designed to facilitate the entire purchasing process.
Without the right software, companies may be unable to achieve cost savings and process efficiency in their procurement processes. In addition to incurring increased hours to process orders and process payments manually, organizations may also increase the risk of manual errors and fraud. Inefficiency can be seen in the fact that manual processes lack standardization and scalability?two features that are available through automation in the form of source-to-pay systems.
In some cases, the use of manual forms can create lack of visibility, as procurement organizations struggle to understand the journey of invoices and other critical documents. For example, manual entry and incorrect filing can lead to significant amount of time being wasted when any discrepancies must be reconciled?an issue that can be rectified with the use of an automated system. Furthermore, with manual procurement processes there is an inherent potential for lost invoices and other time-consuming paperwork.
Financial leaders must realize the sustainability of cost savings is achievable with the use of the right software. Source-to-pay platforms can help organizations to reduce costs, increase compliance, and manage catalogs and contracts. In addition, such systems come with pre-loaded database of suppliers, allowing companies to potentially save money when negotiating deals or observing market trends.
Source-to-pay systems also provide companies with valuable audit trail, which offers clear path when it comes to the tracking of invoices and order discrepancies. Automation also enables businesses to improve compliance with company policies and industry regulations. This can help to reduce the risk of fraud and other financial mismanagement.
Overall, source-to-pay software can offer companies considerable cost savings, time savings, and improved accuracy. Although the up-front and ongoing cost associated with such software systems is significant, the long-term return on that investment is substantial. CFOs looking to enact cloud procurement solution must take into consideration the risks associated with not using an automated system.
