With over 70% of businesses already digitized or in the process of being digitized, digitization is the new trendsetter. When talking about Procurement, digitization can fasten up the process with a relatively low workforce and spendings. A critical aspect of Procurement is Source-to-Pay. What’s the most vital step when you’re talking about a business deal? Is it buying goods? Or making the final payment? Tallying the invoices or negotiating with the supplier? It’s all of them. And all of them come under “Source-to-Pay”.
So, what is source-to-pay in elaborative terms?
What is Source-to-Pay?
Source-to-pay is the end-to-end process where businesses can perform the following operations:
- To analyze the potential (value) of a product by understanding its spend
- To ensure the quality of that product after proper analyzation
- To settle the contract with on-time transactions and invoice-check
- To monitor the risk-free data flow among all the parts of the supply chain
Source-to-pay involves some of the crucial but repetitive tasks. Indeed, there are reasons why one should opt for digitized source-to-pay rather than traditional ones. Well, what are those reasons?
Why should you go for Digitized Source-to-Pay?
The main motive of digital source-to-pay is to optimize the whole procurement process with the use of advanced technologies like RPA (Robotic Process Automation), Machine Learning, Artificial Intelligence, Natural Language Processing (NLP), Computer-coded bots, Cloud Management System, and other intelligent automation techs. Besides this, specific plus points that would help you realize the necessity of going for a digitized source-to-pay:
- It reduces the manual workload by cutting out the analyzing and processing part
- It eliminates the chances of the slightest of errors or inefficiencies, making the process almost 100% ideal
- It ensures the quality and certification of the product (or data) in a lesser period
- It organizes and streamlines the process of data tallying
- It prevents unwanted errors and issues in transactions and invoicing
- It saves the employees from the hectic physical workload and let them focus more on logic-oriented tasks
- It brings the information related to the supplier, products, prices, invoice, billing, dispatch, all in a single platform
- It enhances the collaboration of the buyer with the vendor or supplier to ensure a smooth and sleek approach to Procurement
- It saves resources (monetary) since no paperwork or additional spreadsheet software is required
Why are we concerned with digitizing source-to pay rather than the whole Business Model?
When we choose to digitize the whole business model, the Procurement process also comes under it. But since we know that Procurement is a sensitive and vital aspect that requires careful handling, we can’t go for the reliability of ERPs or any other software. Opting for a vendor specializing only in the Procurement sector and handling all of it for you is the demand one needs to fulfill.
Apart from this, Procurement processes are somewhat complex and require a large amount of potential. Everyone doesn’t understand the complexity of accountings, negotiations, and strategies. Henceforth, it is preferable to go for a quite experienced vendor and specializes only in digitizing the Procurement Procedure.
The Final Verdict
Digitized source-to-Pay is providing new opportunities to the enterprise owners, both in terms of optimization and savings. Companies or startups that are quick to adopt this trend will surely get long-term benefits. Also, opting for a vendor specifically for the digital Procurement process is another vital task that needs digital transformation to ensure efficiency and accuracy.