Source to Pay is a complex initiative that can make or break your bottom line, depending on how you approach it. Why automate your procurement process? The answer is as simple as it sounds—it makes things simpler. Of course, any kind of change can be difficult. But the first step to implementing a positive change in your company is to identify an issue or problem that needs to be solved.
While the concept of fully automating your business processes may seem like a lofty and futuristic objective, as a leader in your industry, you know better than anyone that such concepts are achievable. Furthermore, it’s important to recognize how source-to-pay automation is within reach for nearly every organization today. The benefits are well worth the effort, and your business will start seeing those results once you begin down the road to source-to-pay automation.
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The challenges are real and the stakes could not be higher with procurement, accounts payable (A/P), and finance all depending on accurate, on-time payments. Let’s discuss what some of the challenges are and how you can begin to address them today so your organization is on a path to automating Source to Pay in your own unique way.
How to start source-to-pay automation from where you are right now
It’s not a daunting task to get started on source-to-pay automation. It starts with the first step – identifying where your resources are and where you want them to be in the future. For the most part, answering the question of where your resources are will give you a good idea of where you need to start. However, it might not always be as easy as it sounds. This is especially true if you’re unfamiliar with how technology works in your organization, or if there’s been significant change within your organization over time that has led to the current system being in place. It can also be difficult if the people who put them there in the first place are long gone and no one knows what they were thinking when they made those decisions.
The goal here is to figure out where your resources are and then determine how much additional resource allocation is needed to achieve what you want in terms of efficiency. You may also find yourself needing some assistance with identifying which key performance indicators (KPIs) need improvement based on this analysis.
Source-to-Pay Digitization Diagnostic
Make a list of processes and gaps in your current workflow
The second step is valuing how big the gap between those two places is which will ultimately give you a dollar figure. You should think about what your company’s processes look like today and how they can be improved by automating key steps along the way. A good example of this is taking a closer look at your purchasing process to see if there are inefficiencies that can be solved with the help of an automated system.
Break down silo walls by coordinating your teams.
When you think about how you’re currently managing your source-to-pay processes, what comes to mind? Are you manually entering orders into multiple ERP systems? Do you have people dedicated to updating supplier records or finding new suppliers? Are you relying on a few key individuals in your business who know the ins and outs of every order they place? Close the gaps in your process by automating IT and procurement. Automating can help you align your goals and improve coordination between teams by reassigning resources from tedious manual work to higher impact activities, streamlining processes via automation for better visibility into spend and contract management across your organization and using data to gain insight into your spends and your suppliers
Learn How S2P can benefit in your Unique situation
A recent survey of supply-chain executives revealed that approximately 30% of respondents were already using some form of S2P technology in their organization. Another 40% reported they were planning to deploy an automated S2P system within the next year. But what does getting an S2P solution entail for you?
Learn more about the most effective ways to implement source-to-pay automation in your business and get a better idea of when it makes sense for your company to move forward
Get an overview of how source-to-pay automation works, why it’s important, and what benefits it has to offer.
Gather from Experience
Now that you’ve decided to automate your source-to-pay process, it’s time to start planning. Automating your source-to-pay process can be daunting, but it doesn’t have to be.
The next step is to talk to others who have gone through the process and learn from their experience. The more information you gather, the better prepared you can be when starting your company’s source-to-pay automation journey.
Finally, find a partner who can help with your journey and guide you through the process.
Zycus has helped many companies start their automation processes, so we understand the ins and outs of getting started. Contact us today to learn more about how we can help you get started on source-to-pay automation for your company.
Conclusion
When we talk about source-to-pay automation, we’re referring to technology solutions that help companies improve their sourcing practices—and get more out of their suppliers—while also simplifying payment processes and improving cash flow. Your business has unique needs—that’s why you need a procurement management solution that fits your company’s priorities.
With the help of an actionable roadmap, you’ll be able to see how source-to-pay automation can help you drive down costs and create a foundation for future success. If you follow these steps, we know you’ll be well on your way to successfully automating your source-to-pay processes and improving the efficiency of your business.
Learn More: 9 Reasons Why Source-to-Pay Automation is Good for your Company;
