Technology has automated most of the business processes. Automating the purchase cycle is one of the fastest ways to increase the efficiency of a business. Source-to-pay is one of these effective technologies that lead to fasten the procurement system and lower procurement expenses. Therefore, an optimized procurement process is necessary for a successful business.
Source-to-pay can be stated as a digital journey that leads to e-procurement and starts with finding the supplier of goods. It ends with the final payments for procurements. It can handle sourcing, payment, and all processes in between like negotiating and contracting efficiently. It adds strategic sourcing to the procurement process.
S2P is a technology-based system – software that requires data and digital networks. It utilizes big data to get the necessary information. It integrates complex processes of buying goods and services using networking capabilities into a single centralized platform that elevates transparency into the procurement process.
Following are the tasks that can be fully automated with minimal process changes through S2P:
- Spend Strategy
- Vendor Management
- Master Data Management
- Vendor Selection
- Manage Demand for Purchases
- Place and Receive Orders Quotes
- Invoice Processing
- Payment Processing
Benefits of Source-to-pay
1. Streamlined Procurement Processes
S2P provides connectivity across the organization so the acquisition request is approved faster with appropriate suppliers based on big data analysis. It draws e-request automatically and sends quotes to potential suppliers. And later reviews quote from suppliers. Based on its analysis models, it generates reports highlighting the top negotiating points. Once contracts are finalized, it’s time to sign them and close the deal.
2. Reduce Processing Cost
Companies can save a lot through automated end-to-end S2P. Industry benchmarks show that most companies waste around 3 – 4 % of their overall external expenses on excessive transaction costs. The end-to-end solution can save 3.5% of total spends on procurement costs. The electronic process saves cost as well as time. It removes repetitive tasks and accomplished tasks by automation and encourages employees for more strategic initiatives. Companies can save a lot on staffing costs because of automation.
An S2P solution provides transparency throughout the supply chain and procurement system for both the buyer and supplier. Track the process at every stage. Manage budgets and suppliers from any corner of the world. Stay informed by accessing any information through your personalized dashboard.
4. Better Management
S2P eliminates time-consuming and error-prone manual processes and companies experience better management. Your staff can focus on more strategic activities than invoice processing. Besides, you can get a better handle on supplier risk management.
You can connect to BFAG for a comprehensive Source-to-pay solution offering:
- Centralized management of accounts payable
- Expense analysis
- Workflows to handle payment cycles
- Document tracking
- Monitoring contracts
So, connect with us today. Visit our website for more information on our services.
BFAG (Boston Financial Advisory Group) provides the best Compliance Services. We have a team of experienced professionals who can help you in maintaining your books of accounts.With BFAG taking charge of your FDI Compliance and Reporting, you can focus on deepening the partnership with foreign companies and expanding your business.
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