esker – BLOG ESKER UK https://blog.esker.co.uk Document Process Automation Thu, 25 Jan 2024 13:43:12 +0000 en-US hourly 1 https://wordpress.org/?v=6.0.9 https://blog.esker.co.uk/wp-content/uploads/2020/09/cropped-fav-32x32.png esker – BLOG ESKER UK https://blog.esker.co.uk 32 32 Applying Maslow’s Hierarchy of Needs to Business Operations: How Automation Can Shape a Better Organisational Culture https://blog.esker.co.uk/applying-maslows-hierarchy-of-needs-to-business-operations-how-automation-can-shape-a-better-organisational-culture/ Thu, 25 Jan 2024 13:38:51 +0000 https://blog.esker.co.uk/?p=3161

For Esker, building a human-centric and sustainable business has been the objective ever since we started the company 39 years ago. And today we still ask ourselves how we can encourage others to also embrace this vision for their organisations.

Some vacation reading took me to the Maslow Hierarchy of Needs, and this theory seemed quite fitting not just on a personal level, but also for a business. According to Maslow, what motivates humans to act is the goal of fulfilling five levels of needs: physiological, safety, social, esteem and self-actualisation. The lower-level needs must be satisfied before the higher-level needs can be pursued.

An organisation’s needs can be categorised into a similar ranking: The source-to pay (S2P) and order-to-cash (O2C) processes involve the flow of information and money between a company and its customers and suppliers. These processes are, in fact, the foundation of business operations, as they cover the entire cycle of procurement and sales: from sourcing suppliers and placing orders to delivering goods or services and collecting payments. Automating these processes improves efficiency, accuracy, speed and customer satisfaction. These advantages, in turn, flow into all business relationships, including buyers, suppliers, customers and employees.

Using the Maslow Hierarchy of Needs as a template, we can trace the five motivational levels to a business, too:

Physiological needs for humans consist of food, water, and shelter. For a business, these are cash, liquidity and solvency. Automating the S2P and O2C processes, especially with AI-powered solutions, can help a business meet these needs by making these processes faster, more efficient and accurate. This means fewer errors and delays, and lowered costs by getting paid and paying others faster. Automation can also help a business monitor and manage its cashflow better, so it always has enough money to operate and grow.

Safety needs include security, stability and protection. By improving the quality and consistency of S2P and O2C processes with automation, businesses can reduce the exposure to disruptions, disputes and fraud. Automation solutions build a reliable supply chain, ensuring compliance with rules and regulations, and mitigating risks through consistent decision-making, reliable predictions and accurate data insights.

Social needs generally describe a sense of belonging, acceptance and affiliation. At Esker, we place a lot of attention on exactly this factor: When a business takes care and ownership of the needs of others in their business ecosystem, it creates what we call positive-sum growth. It means that no business can for the long run operate at the expense of anyone or anything else, be it its employees, suppliers or the planet. Automation can help a business meet this standard by enhancing the communication and collaboration with all stakeholders. Not only does this translate into improved customer satisfaction and increased customer loyalty, but also better relationships with suppliers and stronger employee engagement.

Esteem needs refer to the feelings of being recognised, respected and having a sense of achievement. Speeding up business processes and improving their quality ensures better profitability, which gives a company a competitive edge, the ability to convey a strong performance, and engage in sustainable growth. Additionally, these outcomes will positively impact the brand image and reputation of a company, which attracts and retains more customers and talent while reassuring suppliers.

Self-actualisation needs include personal growth and the fulfilment of one’s potential. A clear vision, a strong company culture, and a focus on making a positive impact in the world will inevitably result in a business environment that creates true value to all of society. Automation can help a business meet these needs by freeing up time and resources for strategic planning, value creation, and social responsibility. Aligning the S2P and O2C processes with the company’s mission, vision and values means investing in a stronger ability to focus, inspire creativity, and perform sustainably and with agility.

Since businesses are made up of humans, it’s no wonder that these two compare so easily. And just like in those outdoor survival tv shows where the contestants first build a shelter, forage or hunt for food, and then increasingly turn their attention to improvements or artistic pursuits, an organisation should take care to cover the basics before thinking about expansion or vanity projects. Automating the S2P and O2C processes not only satisfies the basic operational requirements but also creates value and meaning for themselves and their stakeholders in a dynamic and competitive environment.

To find out more about positive-sum growth and how we integrate it into our solutions and daily life, visit www.esker.co.uk

Emmanuel Olivier

Emmanuel has been with Esker for 25 years. As WW Chief Operating Officer, he leads Esker’s operations worldwide, covering sales, marketing and consulting activities. He also supervises Esker’s finances and is in charge of its financial communication and investor relations.

Esker UK

Unlocking Positive-Sum Growth with AI-Driven Business Solutions for P2P & O2C Cycles

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Embrace Efficiency in the New Year: 5 Areas to Automate Your Cash Collection Process https://blog.esker.co.uk/embrace-efficiency-in-the-new-year-5-areas-to-automate-your-cash-collection-process/ Wed, 10 Jan 2024 11:41:48 +0000 https://blog.esker.co.uk/?p=3156 As we step into the new year, it’s the perfect time to evaluate and enhance your organisation’s processes for greater efficiency and success. One key area to focus on is automating your cash collection process. In this article, we’ll explore why this should be a priority and highlight five crucial areas to concentrate on. Let’s dive in and discover how you can streamline your cash collection procedures.

1. Speed Up Invoice Processing
Automating your cash collection process begins with accelerating invoice processing. Using cutting-edge technology enables quick and accurate invoice creation, approval, and distribution. By reducing manual intervention, you can minimise errors and ensure that invoices reach your customers promptly, facilitating faster payment turnaround.

2. Enhance Payment Visibility
Visibility into your payment process is essential for effective cash collection. The ability to provide real-time tracking and reporting features, allowing you to monitor payment statuses and identify any bottlenecks is crucial. This transparency empowers your team to take proactive measures, improving overall cash flow management.

3. Implement Secure Payment Gateways
Security is paramount when it comes to financial transactions. Ensure secure payment gateways, safeguarding your organisation and customers from potential threats. With encrypted payment channels and compliance with industry standards, you can instill trust and confidence in your payment processes.

4. Minimise Manual Data Entry
Eliminate the time-consuming and error-prone task of manual data entry. Automation tools can seamlessly integrate with your existing systems, reducing the need for manual intervention. This not only increases accuracy but also frees up valuable resources, allowing your team to focus on more strategic tasks.

5. Personalise Customer Communication
Effective communication is key to successful cash collection. Esker empowers you to personalise and automate customer communication, sending tailored reminders and updates. This not only improves customer relationships but also encourages timely payments.

In conclusion, embracing automation in your cash collection process is a strategic move to consider for the new year. By focusing on these five key areas, you can enhance efficiency, reduce errors, and ultimately boost your organisation’s cash flow. Make 2024 the year of streamlined processes and increased success .

Ready to embark on this journey towards a more efficient cash collection process? Contact Esker today to learn more about our cutting-edge automation solutions, and how they can benefit your organisation.

Sam Townsend

Sam is Head of Marketing for Esker Northern Europe and has been part of the Esker family since 2003.

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Streamlining Success: Why Supply Chain Leaders Should Embrace B2B Customer Service Automation https://blog.esker.co.uk/streamlining-success-why-supply-chain-leaders-should-embrace-b2b-customer-service-automation/ Wed, 13 Dec 2023 10:55:15 +0000 https://blog.esker.co.uk/?p=3152 In the ever-evolving landscape of supply chain management, staying ahead requires more than just efficient logistics and optimised processes. B2B customer service automation is emerging as a game-changer, offering supply chain leaders a myriad of benefits that extend beyond just customer satisfaction. In this blog, we will explore why supply chain leaders should pay close attention to the integration of customer service automation into their operations.

Enhanced Efficiency and Speed
In the fast paced world of supply chain, time is money. Customer Service automation streamlines routine tasks, such as order processing, tracking, and issue resolution, significantly reducing response times. This efficiency not only improves customer satisfaction but also contributes to the overall speed and agility of the supply chain.

24/7 Accessibility: Automation doesn’t sleep.
By implementing B2B customer service automation, supply chain leaders can ensure that their customers have access to support around the clock. This 24/7 accessibility is crucial for global supply chains, where partners may be operating in different time zones. It enhances the overall reliability of the supply chain and fosters a sense of trust among B2B customers.

Data-Driven Decision Making
Customer Service automation generates a wealth of data that can be leveraged for strategic decision making. Supply chain leaders can analyse customer interactions, identify patterns, and gain valuable insights into areas that may need improvement. This data driven approach allows for continuous optimisation of the supply chain, leading to more informed and effective decision making.

Scalability and Flexibility
As supply chain operations grow, the demand for customer service also increases. Automation provides scalability, allowing supply chain leaders to handle a growing volume of customer interactions without a proportional increase in resources. This flexibility is particularly valuable during peak seasons or periods of rapid expansion, ensuring that customer service levels remain consistent.

Cost Savings
Traditional customer service models often require a significant investment in human resources. B2B customer service automation can lead to substantial cost savings by automating routine tasks, reducing the need for a large customer service team. This cost-effectiveness allows supply chain leaders to allocate resources strategically, investing in areas that directly contribute to the overall efficiency and success of the supply chain.

In summary, B2B customer service automation is not just a technological trend; it’s a strategic imperative for supply chain leaders looking to stay competitive in today’s dynamic business environment. By embracing automation, leaders can elevate their customer service, enhance operational efficiency, and position their supply chains for sustained success in the digital age. It’s time to automate and streamline the path to excellence in B2B customer service.

Upnesh Grewal

As Marketing Coordinator for Esker UK, Upnesh manages Esker UK's marketing campaigns and events for O2C solutions. She has been part of the Esker family since 2022.

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Link Aviation Elevates Procurement Excellence Through Partnership With Esker https://blog.esker.co.uk/link-aviation-elevates-procurement-excellence-through-partnership-with-esker/ Thu, 07 Dec 2023 11:32:48 +0000 https://blog.esker.co.uk/?p=3146 Esker, a global cloud platform and leader in AI-driven process automation solutions for Finance, Procurement and Customer Service functions, today announced a strategic partnership with Link Aviation to transform Source-to-Pay processes for the aviation industry  around the globe.

The partnership will enable Link to integrate Esker’s innovative software into its existing services, and to resell the solutions to its broad network in the aviation industry.

Read full press release here.

Esker UK

Unlocking Positive-Sum Growth with AI-Driven Business Solutions for P2P & O2C Cycles

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Esker Receives EcoVadis Platinum Medal and Places Among Leaders in the EthiFinance Ranking https://blog.esker.co.uk/esker-receives-ecovadis-platinum-medal-and-places-among-leaders-in-the-ethifinance-ranking/ Wed, 06 Dec 2023 13:14:28 +0000 https://blog.esker.co.uk/?p=3143 These achievements underline Esker’s continuous commitment and leadership in ESG performance

Esker, a global cloud platform and leader in AI-driven process automation solutions for Finance, Procurement and Customer Service functions, today announced it has once again received recognition for its Environmental, Social and Governance (ESG) commitments. EcoVadis awarded Esker the Platinum Medal and placed it in the top 1% of companies evaluated across all industries. EthiFinance also ranked Esker among the leaders of its ESG Rating. These two accomplishments exhibit Esker’s successful implementation of its ambitious ESG roadmap.

The Platinum Medal is the highest distinction awarded by EcoVadis, the leading provider of business sustainability ratings. Esker received an overall score of 81/100, up 7 points from 2022, and improved its social and ethical conduct score by 10 points. EthiFinance, a European rating, research and advisory group serving sustainable finance and development, evaluates companies according to a framework containing 140 criteria which are divided into four tiers. Esker achieved an overall score of 75/100, an increase of 8 points over 2022. Notably, this included a 30-point improvement in environmental performance and a 9-point improvement in the social performance category.

“The EcoVadis and EthiFinance awards crown two decades of continuous efforts to establish a more sustainable and resilient business model,” said Jean-Michel Bérard, CEO at Esker. “We have put a roadmap in place in which we pledge to increase our efforts to achieve four key objectives: acting ethically and responsibly, continuing to grow customer trust, fostering a content and skilled workforce, and doing our part in protecting the planet. The involvement of all teams and stakeholders is essential to successfully reduce Esker’s environmental footprint, which also is a prerequisite for long-term growth.”

This year, Esker has been able to distinguish itself in the social sphere, thanks to long-standing commitments to employee well-being as well as externally through community engagement and educational initiatives. Esker understands the importance of a positive work environment and promotes a culture of diversity and inclusion and held several company-wide awareness-raising initiatives such as trainings, events and workshops on these subjects. And successfully so, as the question “I feel accepted as I am at Esker” received the highest score in the 2023 HR employee survey. Over 91% of employees recommend Esker as great company to work for.  

“The EcoVadis Platinum Medal and the significant progress on social and ethical conduct aspects acknowledge the long-term work performed not only by Esker Management and HR teams, but above all by Esker employees, who are very involved in proposing ideas and seeing them through,” said Aurélie Guimera, Worldwide Director of Human Resources at Esker. “This is an impressive team achievement which aligns superbly with our company values.”

Being a technology company, Esker is committed to the inclusion and promotion of women in IT positions. With 32% of management positions held by women (compared with 31% of women in the total workforce), the company’s goal is to achieve an overall rate of 34% women in the workforce by 2027.

Esker’s commitment to innovation is also reflected in its education sponsorship programme, which includes being a founding partner of the coding school Ecole 42 Lyon, and a cocreator of an AI research chair at INSEEC. By supporting a variety of schools and organisations in the region that promote gender equality in the IT sector and encouraging exchanges between students and employees, Esker is working to contribute to the development and integration of future graduates. An additional pillar of this work revolves around the recruitment of interns and work-study programme participants, whose number has more than doubled in France between 2020 and 2022.

On the environmental front, Esker is strongly committed to reducing the environmental footprint of its business activities. Esker has proactively measured its carbon emissions across all locations worldwide, including all direct and indirect emissions (scopes 1, 2 and 3).

Esker recently renewed its ISO 14001 environmental management certification for both locations in France (Villeurbanne and Décines). Esker strives to extend the lifecycle of company-owned IT equipment and electronic devices as much as possible by performing in-house maintenance, vendor support and employee buyback programmes. These buybacks are made in exchange for donations to charities of the employee’s choosing. As part of its ESG roadmap, Esker is also committed to extending the lifespan of its IT equipment for all subsidiaries by six months by 2027.

Esker considers ethical business conduct to be the foundation of its operations. To that end, the company has implemented anti-corruption policies and training as well as a Code of Conduct for all employees.

Learn more about Esker’s ESG strategy https://www.esker.co.uk/company/environmental-social-governance/

Read full press release here.

Esker UK

Unlocking Positive-Sum Growth with AI-Driven Business Solutions for P2P & O2C Cycles

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Using AI to Transform Business Processes & Outcomes https://blog.esker.co.uk/using-ai-to-transform-business-processes-outcomes/ Thu, 30 Nov 2023 12:42:13 +0000 https://blog.esker.co.uk/?p=3137 Both the entertainment and hype factors for the newest developments in AI are pretty high. Where AI capabilities really shine, however, is when business processes are enhanced by machine learning, deep learning, and yes, even ChatGPT. Learn how responsibly-used AI can improve a variety of business metrics in this Executive Insight by Emmanuel Olivier, Esker Worldwide Chief Operating Officer.

Artificial Intelligence (AI), the simulation of human intelligence by machines, has been around for longer than some might think: The actual beginnings of this field lie in the 1950s, at Dartmouth College in New Hampshire. Over the decades, the excitement has alternately waxed and waned. What catapulted AI to the absolute highest hype levels, however, was the release of ChatGPT by OpenAI in November 2022. ChatGPT — which stands for Chat Generative Pre-trained Transformer — is a Large Language Model (LLM) that unleashed a new era of usability of AI.

The initial enthusiasm was immense. Speculation about all the problems AI will solve, and what problems it
will create, abounded. Almost a year later, the buzz has died down a little, but governments all over the world are considering legislation as to how AI can and should be used responsibly. For private use, AI capabilities are used for entertainment and, not least because of cost, will probably remain so for a while to come. Businesses, meanwhile, are ready to hit the ground running. It is no surprise that Microsoft has embedded a variety of AI-piloted features in its products.

Although it gets the most attention due to its revolutionary capabilities, ChatGPT is not all that AI can do. There are many different layers, and their targeted and pragmatic use can help organisations in their digital transformation.

Machine learning algorithms are not programmed. Instead, they “learn” from user input to solve specific problems, continuously advancing these learning capabilities. They can, for example, extract relevant data from customer orders sent in a variety of formats: free-text emails, PDFs, images and even, for those still stuck in the 90s, faxes. Sometimes, however, misidentifications occur, and values are not correctly read. This is where human intervention is still required to rectify these errors. The machine learning AI will then remember the correction, and, with the help of historical data analysis, from there on out rapidly predict increasingly correct outcomes.

Deep learning, a subcategory of machine learning, can execute even more advanced tasks. Relying on artificial neural networks that mimic the human brain and on enormous amounts of validated data, deep learning extracts information from multiple data layers, yielding even higher accuracy and optimisation. Ideal business uses for deep learning technology can be found, for example, in email triage for shared inboxes, both on the supplier and customer sides. Questions, invoices and purchase orders can all be filtered out and forwarded to the correct recipient. For the Finance department, deep learning can even pinpoint small changes in payment behaviours, order dynamics and credit ratings. These indicators can have a significant impact on working capital requirements, and thus, the earlier they are detected, the better the business can react accordingly.

And then, of course, there is ChatGPT. In addition to the fun moments it can provide when entering a query,
for example, to generate an article about AI business use-cases in the voice of Yoda, it does have some real-life applications. Customers who email a business with questions such as “Where is my order?” or “When will my reimbursement arrive?” are all living different experiences. While sentiment analysis can identify when a customer might be getting frustrated, ChatGPT can help in generating an appropriate response. This refers to both tone and content: pulling the correct information from the different systems and then suggesting a fitting answer. The emphasis here lies on “suggesting.” A human should always remain in control and make necessary adjustments, rather than relying on ChatGPT for fully automated responses. The potential for errors is just too great otherwise.

The hoped-for result would be an efficient workplace that cuts out repetitive and meaningless tasks by using AI, and brings to light hidden financial details and business indicators. These tools need to remain assistive rather than replacing humans, since no matter how intelligent AI is, the human touch just cannot be replaced. Properly used, with an awareness of potential risks, AI technologies should be used to increase well-being, strengthen our democracies, and improve the shared information environment.

Esker UK

Unlocking Positive-Sum Growth with AI-Driven Business Solutions for P2P & O2C Cycles

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Allegro-Pro Sign Referral Partnership for Esker S2P and O2C Solutions https://blog.esker.co.uk/allegro-pro-sign-referral-partnership-for-esker-s2p-and-o2c-solutions/ Wed, 29 Nov 2023 11:18:01 +0000 https://blog.esker.co.uk/?p=3129 Esker, a global cloud platform and leader in AI-driven process automation solutions for Finance, Procurement and Customer Service functions, today announced a strategic partnership with Allegro-Pro to refer the full suite of Esker Source-to-Pay (S2P) and Order-to-Cash (O2C) solutions for businesses globally.

Allegro-Pro specialises in a wide range of SAP financial modules and has hands-on experience in implementing SAP S/4 HANA and On-Premise solutions. Its dedicated consultants will refer Esker solutions alongside SAP modules to ensure the most comprehensive solution package for their clients.

Read the full press release here.

Esker UK

Unlocking Positive-Sum Growth with AI-Driven Business Solutions for P2P & O2C Cycles

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Esker Designates Catherine Plasse as New CFO https://blog.esker.co.uk/esker-designates-catherine-plasse-as-new-cfo/ Wed, 22 Nov 2023 12:36:09 +0000 https://blog.esker.co.uk/?p=3126

Esker, a global cloud platform and leader in AI-driven process automation solutions for Finance, Procurement and Customer Service functions, today announced the appointment of Catherine Plasse as Esker’s new Chief Financial Officer.

Reporting to Emmanuel Olivier, Esker COO on the Board of Directors, Plasse will manage and coordinate Esker’s Finance teams worldwide and join Esker’s Associate Board of Directors. She will lead the creation of information for the public and financial communities and ensure the maintenance of a high-level internal control environment and compliance with regulatory obligations. Plasse will also play a crucial role in steering the operational performance of Esker by managing budgetary and control aspects. In collaboration with the Board of Directors, she will also be actively involved in the development of Esker’s environmental, social and corporate governance (ESG) policies.

Plasse brings to Esker more than 15 years of experience in strategic financial management and providing key input to executive levels at a variety of international companies. Plasse held various Financial Analyst and Controller positions at Suez Group, most notably as CFO in the U.S. for three years. She holds three degrees in International Business Administration, from Northumbria University (BA), IAE France (master’s degree) and EDHEC Business School (BA). She also holds a certification in Sustainable Transition Management from HEC Paris and in Principles of Sustainable Finance from Erasmus University of Rotterdam.

“I’m delighted to be joining Esker, an innovative company that plays a key role in the digital transformation of businesses worldwide,” said Plasse. “I look forward to contributing to Esker’s continued success and collaborating with such a dynamic and talented team.”

“Catherine brings to Esker a wealth of international experience, strong technical and managerial skills, as well as deeply held beliefs in ESG responsibility. We look forward to working with her and continuing Esker’s success story,” said Jean-Michel Bérard, CEO at Esker.

Read full press release here.

Esker UK

Unlocking Positive-Sum Growth with AI-Driven Business Solutions for P2P & O2C Cycles

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Creating an S2P Dream Team https://blog.esker.co.uk/creating-an-s2p-dream-team/ Wed, 08 Nov 2023 14:00:00 +0000 https://blog.esker.co.uk/?p=3111 When Finance and Procurement work together effectively, they can create a dream team to drive Source-to-Pay (S2P) excellence! Read on to learn more.

Increasing uncertainty in the global economy has led to increased pressure on the procurement function to lower costs and maximise efficiencies. At the same time, finance teams are also under pressure to maximise the bottom line whilst providing visibility and accountability at any given point.

Finance and procurement are undoubtedly two essential functions within any organisation. While they may individually have different goals and responsibilities, when they work together effectively, they can create a dream team to drive Source-to-Pay (S2P) excellence. Just like a football dream team, finance and procurement can complement each other’s strengths and work towards a common goal of achieving cost savings, improving efficiency, and mitigating risks.

One of the key areas where finance and procurement can collaborate is in strategic sourcing. Procurement teams are responsible for identifying and selecting suppliers, negotiating contracts, and managing relationships. However, finance teams can provide valuable insights into the financial health and stability of potential suppliers. By working together, they can ensure that suppliers not only offer competitive pricing but also have the financial capability to meet the organisation’s needs in the long term.

Another area where finance and procurement can make great wins together is in spend analysis. Finance teams have access to financial data and can provide insights into spending patterns, budget allocations, and cost-saving opportunities. Procurement teams can leverage this information to identify areas of potential savings, negotiate better contracts, and optimise the overall procurement process. By combining their expertise, finance and procurement can drive cost reductions and improve the organisation’s bottom line.

Risk management is another critical area where finance and procurement can work together effectively. Procurement teams are responsible for assessing supplier risks, ensuring compliance with regulations, and managing supplier relationships. Finance teams, on the other hand, can provide insights into financial risks, such as creditworthiness, liquidity, and solvency of suppliers. By collaborating, finance and procurement can identify and mitigate potential risks, ensuring the organisation’s supply chain remains robust and resilient.

Technology plays a crucial role in achieving source-to-pay excellence, and finance and procurement work well as a team in this area as well. Finance teams often have expertise in financial systems and technology, while procurement teams are well-versed in procurement software and tools. By working together, they can select and implement integrated source-to-pay solutions that streamline processes, improve data accuracy, and enhance visibility across the organisation. This collaboration can lead to increased efficiency and visibility, reduced manual work, and improved decision-making.

Communication and collaboration are the keys to success for finance and procurement teams. Regular meetings, joint planning sessions, and shared goals can foster a strong partnership between the two functions. By aligning their objectives and working towards a common vision, finance and procurement can create a synergy that drives an efficient and effective end-to-end source-to-pay process.

In conclusion, finance and procurement can work together like a football dream team to achieve source-to-pay excellence. By leveraging each other’s strengths, collaborating on strategic sourcing, spend analysis, risk management, and technology implementation, they can drive cost savings, improve efficiency, and mitigate risks. Just like a successful football team, finance and procurement can achieve remarkable results when they work together towards a common goal.

Esker’s AI-driven Source-to-Pay suite equips companies with the technology and tools for finance and procurement teams to collaborate to meet shared goals and streamline the end-to-end S2P process.

What does Esker’s COO, Emmanuel Olivier, think creates an S2P Dream Team? Download his latest Executive Insight to discover more!

Jennifer Ball

As Marketing Co-ordinator for Esker UK, Jennifer manages Esker UK's marketing campaigns and events for S2P solutions. She has been part of the Esker family since 2019.

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Navigating Procure-to-Pay and Source-to-Pay: Unravelling the Key Differences https://blog.esker.co.uk/navigating-procure-to-pay-and-source-to-pay-unravelling-the-key-differences/ Wed, 18 Oct 2023 13:11:49 +0000 https://blog.esker.co.uk/?p=3098 Confused about the nuances between Procure-to-Pay (P2P) and Source-to-Pay (S2P)? Read on for clarity!

In the intricate tapestry of modern business processes, Procure-to-Pay (P2P) and Source-to-Pay (S2P) stand as pivotal threads, weaving efficiency and transparency into the fabric of procurement strategies. While these terms might sound similar, they denote distinct stages in the procurement lifecycle, each bearing unique characteristics and challenges. In this comprehensive exploration, we delve deep into the realms of Procure-to-Pay and Source-to-Pay, unraveling the intricate differences that set them apart.

As Esker quickly identified the benefit of moving towards a more strategic outlook of procurement, the acquisition plan to bring in Market Dojo’s eSourcing cloud solution was brought in to address the need for structured and digitised processes in procurement. Designed by procurement professionals, Market Dojo’s unique on-demand solution enables users to centralise information, negotiate the best value for goods and services, and select the right suppliers — all without requiring a complex and costly implementation process.

So let’s take a look at what sets both P2P and S2P apart.

Procure-to-Pay (P2P)

Procure-to-Pay encapsulates the entire procurement process, spanning from the initial requisition of goods or services to the final payment. It’s a systematic approach that organisations employ to streamline and automate their procurement activities, ensuring seamless coordination between various departments and stakeholders. The P2P process typically encompasses the following stages:

1. Requisitioning:
The process commences with a requisition, where internal stakeholders identify the need for goods or services. This requisition is then submitted for approval, ensuring alignment with budgetary constraints and organisational policies.

2. Supplier Identification and Evaluation:
Once the requisition is approved, the procurement team identifies potential suppliers. Rigorous evaluation criteria are applied to assess suppliers’ capabilities, quality, pricing, and reliability, ensuring the selection of the most suitable vendor.

3. Purchase Order (PO) Creation:
Upon selecting the vendor, a purchase order is generated. This document outlines the details of the transaction, including quantity, specifications, pricing, and delivery timelines. The PO serves as a legal contract between the buyer and the supplier.

4. Goods Receipt and Inspection:
Upon delivery, the receiving department inspects the received goods or services to ensure they meet the specified requirements. Any discrepancies are documented and addressed with the supplier.

5. Invoice Verification and Payment:
After successful inspection, the received goods or services are matched with the purchase order and invoice. Once validated, the invoice is processed for payment. Timely payment processing is crucial for maintaining healthy supplier relationships.

Source-to-Pay (S2P)

Source-to-Pay, on the other hand, is a broader strategic approach that encompasses not only the procurement process but also strategic sourcing and supplier management. It represents a comprehensive view of procurement, focusing on optimising costs, mitigating risks, and fostering collaboration with suppliers. The S2P process includes:

1. Strategic Sourcing:
Strategic sourcing involves analysing the organisation’s procurement needs, identifying potential suppliers, and negotiating contracts. The goal is to secure the best terms and conditions, ensuring quality and value for money. Strategic sourcing often involves in-depth market analysis and supplier collaboration to drive innovation and competitiveness.

2. Procurement Execution (P2P):
The procurement execution phase in S2P aligns with the traditional Procure-to-Pay process, encompassing requisitioning, supplier identification, purchase order creation, goods receipt, invoice verification, and payment processing.

3. Supplier Performance Management:

S2P places significant emphasis on evaluating and managing supplier performance. Key performance indicators (KPIs) are established to measure suppliers’ quality, delivery timeliness, responsiveness, and adherence to contractual terms. Supplier feedback mechanisms are implemented to foster continuous improvement.

4. Contract Management:
Effective contract management is essential in S2P. Contracts are meticulously drafted, detailing all terms and conditions. Continuous monitoring ensures compliance and facilitates renegotiation or termination if necessary. A well-managed contract landscape enhances transparency and reduces legal and financial risks.

5. Spend Analysis and Optimisation:
S2P incorporates spend analysis tools to scrutinise procurement expenditures. By identifying patterns and opportunities for consolidation, organisations can optimise their spending, negotiate better deals, and enhance overall cost-efficiency.

Key Differences and Significance:

While both Procure-to-Pay and Source-to-Pay involve procurement activities, the primary distinction lies in their scope. P2P focuses on the operational aspects of procurement, emphasising transactional efficiency and accuracy. S2P, on the other hand, adopts a strategic perspective, integrating procurement with sourcing, supplier management, and cost optimisation strategies. S2P provides a holistic view of the procurement lifecycle, enabling organisations to make informed decisions, mitigate risks, and drive long-term value. This is why Esker has made the move to offer a more strategic solution of the procure to pay cycle to organisations looking to increase their strategic outlook which includes sourcing.

In conclusion, understanding the nuances between Procure-to-Pay and Source-to-Pay is crucial for organisations aiming to enhance their procurement processes. By embracing these methodologies in tandem, businesses can achieve a harmonious balance between operational efficiency and strategic foresight, ultimately fostering sustainable growth and competitiveness in the dynamic global market landscape.

Watch the video below for a brief overview of Esker’s Source-to-Pay suite.

Sam Townsend

Sam is Head of Marketing for Esker Northern Europe and has been part of the Esker family since 2003.

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