5 Ways Source-to-Pay Automation Gives You a Head Start & a Leg Up

Have you noticed?

There’s a new acronym showing up in the Finance and Procurement scene: S2P. Standing for “source-to-pay,” it’s not just a rebrand for procure-to-pay (P2P). Rather, it’s an expanded approach to managing and optimising the process of procuring goods and services by starting at the one step preceding procurement: sourcing.

P2P vs. S2P:  What's the difference?

In a nutshell ...

While P2P starts with the requisition of a purchase — often from a pre-approved catalog of suppliers — S2P begins the actual sourcing of goods, covering every step in the process from spend management, strategic sourcing, and supplier management, through to purchasing, performance management and accounts payable (AP).

Why not just stick with P2P?

By backing up one step, S2P solutions bring strategic sourcing into the mix, opening up a trove of new opportunities for:

• Maximising efficiency
• Lowering cost
• Strengthening supplier relationships
• Uniting finance & procurement

But wait, there's more ...

Let’s get into the top five ways S2P automation is elevating Procurement efficiency and helping forward-thinking organizations get a leg up on the competition.

01

It adds up to big savings.

Source-to-pay automation is a financial ally that aids businesses in achieving their cost-cutting goals. By replacing manual processes with streamlined automation, S2P solutions help reduce operational inefficiencies, minimize errors and negotiate optimal deals. Quick invoice processing and spending analysis further enhance fiscal efficiency, allowing businesses to trim expenses and maximize savings without compromising on productivity.

02

It makes compliance a sure thing.

Source-to-pay automation enforces compliance at every step, preventing unauthorised purchases and ensuring adherence to established company spending guidelines. This not only enhances financial control but also drastically reduces the risk of costly deviations, promoting a culture of responsible spending within the organization.

03

It diversifies and minimises supplier risk.

Source-to-pay automation acts as a shield against supplier risk and payment fraud. Through comprehensive supplier data analysis, S2P solutions can identify potential vulnerabilities and ensure a diversified supplier base. This proactive approach bolsters resilience, reduces disruptions and helps build a robust risk management strategy that safeguards the continuity of Procurement operations.

Did you know that ...

According to McKinsey & Company, industry benchmarks suggest that most organisations waste. 3 to 4% of their overall external spend on excessive transaction costs, inefficiency and noncompliance. Good news though: S2P automation can help with that.

04

It's easy to integrate.

By seamlessly integrating into business operations and ERP systems, automated S2P solutions offer user-friendly implementation that ensures a smooth transition, allowing companies to harness its benefits without major disruptions. This ease of integration enhances efficiency and allows organisations to quickly leverage the advantages of automation throughout the entire S2P process.

05

It makes the whole process transparent.

AI-driven automation enables unparalleled process visibility, providing a crystal-clear view into the entire S2P journey. With real-time tracking and data analytics, businesses gain insights into each stage, from requisition to payment. This level of transparency not only enhances decision-making but also fosters accountability and strategic optimisation of all S2P processes.

The early bird gets the worm

And it couldn’t be truer when it comes to expanding automation to include strategic sourcing. By capitalising on the hidden value and new opportunities found in S2P processes, not only can your organization kickstart Procurement efficiency one step sooner, but it can also put itself ahead of the competition by beating them to the punch.

Go on, now. Be that bird.