What are the benefits of source to pay services?
Source to pay services can mean a lot to your organization, that’s one thing for sure. But do you know exactly what it entails? What the benefits are and what this can mean for your organization? In this blog, we answer all these questions.
Source to pay: what exactly is this?
Source to pay is the a service that can help organizations efficiently set up the procurement process. This involves the entire process from source to pay. Thus, all kinds of parts of the process can be looked at to see where it can be more efficient. Source to pay services mainly serve to improve the synergy between the finance department and the procurement department. The work done in the finance department naturally affects the purchasing department, and vice versa, of course. A good synergy between these two departments is therefore certainly desirable within an organization.
What is the difference between procure to pay and source to pay?
Procure to pay is also a service that can help in setting up the procurement process more efficiently, but it is somewhat more limited. With the source to pay service, you get 360-degree visibility into performance and spending. With procure to pay, this is limited to a few phases of the entire source to pay process. This mainly involves analyzing the procured goods. It then looks at whether it can be even more efficient, for example. Procure to pay is thus a part of the source to pay process and therefore somewhat more limited.
What are the benefits of deploying source to pay?
Deploying source to pay for your organization can bring many benefits. For example, you can reduce the supplier base by up to 80%. This is a big advantage because it means that the billing department doesn’t have to pay all kinds of different invoices that also have different deadlines. In addition, many suppliers also result in the need for a lot of contact. If the suppliers become fewer, you also have to keep less contact. This, of course, saves a lot of time! In addition, there are several other advantages that source to pay brings, source to pay in fact makes it possible to digitize the entire process.
These are the advantages:
- Less manual work and therefore you also need less paper
- Insight into performance and expenses whenever you want
- A convenient overview with which you can strengthen everything supplier relations
- Tracking and monitoring supplier performance through this overview
- Better communication with suppliers
- Improve purchasing conditions
What does this mean for the organization?
Deploying source to pay services can therefore be of great benefit to your organization. It can save a lot of money by making the entire procurement process more efficient. The supplier base will be reduced, where you can also save a lot of time. There will be more synergy between the procurement department and the finance department, which of course also has its advantages.