Let’s enter the world of the CFO, and look at some of the challenges frequently faced in the S2P cycle, and how comprehensive automation solutions can help with those.
Aaaaahh…the end of summer…
The tan and the relaxation are slowly fading, the good memories hopefully not.
How about those memories of actually booking that vacation, though? Did the booking process overshadow the enjoyment of the trip?
First, there’s the lack of visibility: the different providers for airline, airport transportation, hotel, car rental, etc., can get confusing. You never really have a clear overview of whether prices are fair or what the real costs are (baggage fees, anyone?). Sneaky hidden costs can make for a rude awakening when the bank statement arrives after the trip…
Then there’s the question of risks: is the hotel in a safe area? Is the hotel pool unexpectedly out of service?
Are you aware of all the rules and regulations of where you’re going? Is the passport valid?
What happens when something goes wrong, like a cancelled flight? How is the rebooking best handled?
All in all, not the most relaxing way to go about taking a vacation. But we hope you had a great time anyway!
Now, to turn your attention back to work (sorry…!): If you’re a CFO or work in a CFO-adjacent function, the travel difficulties can also be applied to the source-to-pay (S2P) cycle.
Let’s look at some of the challenges frequently faced in the S2P cycle, and how comprehensive automation solutions can help with those:
- Do you have sufficient visibility and control over procurement activities?
In order to effectively manage spend, procurement needs to be transparent. S2P platforms provide thorough spend analytics so that cost-saving opportunities are quickly identified and expenditure patterns easily tracked while ensuring compliance with budgetary guidelines.
- Are risk mitigation and compliance metrics where they need to be?
Robust features of S2P solutions such as automated contract management and supplier risk assessments let you proactively identify and mitigate potential risks, enforce compliance with regulatory standards and ensure adherence to internal policies.
- Are you and the business’ vendors on the same page?
Effectively managing suppliers is a fundamental part of business success, yet it is a complex process involving multiple steps. S2P solutions can help facilitate effective supplier management by enhancing communication, collaboration and performance evaluation. Sustainable and ethical supplier practices can be promoted by incorporating strategic sourcing and vetting procedures into the procurement process. And communication tools that provide instant visibility—including performance metrics—ensure better collaboration internally and with suppliers.
- Are the numbers adding up?
Providing valuable strategic guidance to the company relies on informed decisions based on accurate and complete financial visibility. S2P platforms integrate financial data from various sources, and create a holistic view of performance, cash flow and working capital. Comprehensive visibility enables CFOs to assess the financial health of the organisation, identify areas for improvement and drive strategic initiatives effectively.
The idea behind S2P solutions is not just the automation part. It’s also about recognising that finance and procurement have shared objectives and that collaboration between the two can foster a strong partnership that enhances decision-making, optimises costs, mitigates risks, and drives sustainable growth. These factors defy the usefulness of point solutions that allows each department to remain siloed, and instead calls for a single platform solution that can manage the entire S2P process from beginning to end.
Equipped with an extensive collection of AI capabilities, Esker’s end-to-end Source-to-Pay suite enables companies to remain agile in an ever-changing world and to build resilient and sustainable businesses.
Ready to learn more about Esker?
Visit: www.esker.co.uk
