With more and more companies transforming and digitizing the source to pay (S2P) process, the need for productive S2P process is also increasing. Although the focus of companies usually is to obtain “hard” and tangible benefits such as enforcing procurement policies, enhancing the efficiency of processes, and reducing maverick spend, the true value of source to pay system go beyond these factors.
Companies have to process thousands of invoices, purchase requisitions, supplier data, contracts, and many more every day. They invest a lot of time in the management of various functions such as spend analysis, category management, purchase requisitions, and vendor management. This makes it mandatory for them to leverage source to pay solutions and services that can manage their procurement processes.
Is your organization finding it challenging to improve the procurement process? If yes, get in touch with our experts and know how source to pay can benefit your organization.
What is source to pay?
Source to pay, commonly known as S2P streamlines all the processes involved in the procurement. It provides detailed insights into the spend management, strategic sourcing, vendor and inventory management, purchasing, performance management, and product planning.
At SpendEdge, we understand that many companies often ignore source to pay and suffer from frequent duplicate payments and different supplier issues. In this blog, our team of experts have listed out some key benefits that businesses can avail using the source to pay.
Benefits of a source to pay process
Companies usually lack a proper system that can gather and assess supplier information systematically. This results in increased total costs for procurement cycles. With an effective source to pay cycle companies can precisely assess the supplier’s compliance with regulatory standards and the company’s code of conduct. We provide complete supplier risk analysis solutions to analyze every attribute from the supplier’s financial stability and risks associated with currency and interest rates and help companies increase the efficacy of business in the long term.
Sourcing and contracting
Majority of companies are gradually realizing the need to reduce the cost of their contracting process. However, they are still involved in back and forth negotiations with suppliers and extending time to execution and delaying cost savings. At SpendEdge, we follow a meticulous process that helps enterprises reduce risks of working with new vendors and quickens on-boarding processes. Also, our procurement experts who hold expertise in contract management help companies to enhance contract visibility and ensure that they get the best possible terms during every purchase.
Off contract buying negates negotiated cost savings for organizations and circumvents approval policies. This further complicates supplier invoice processing for companies. Our source to pay process consolidates suppliers within specific supply markets and help firms reduce purchasing and supplier costs while enhancing the efficacy of their procurement process.
Source to pay is imperative for companies to get the best deals while complying with all regulatory guidelines. Request a free demo and know how procurement experts at SpendEdge can help you avail the best deals.