By now it should be clear that a lot of things need to change if we want to avoid a climate emergency and all the downstream effects it will bring with it. And since these downstream effects will also affect businesses, the responsibility to take action lies on everyone’s shoulders. Governments and institutions are rolling out more and more regulations for sustainability measures such as the CSRD by the European Commission, and organisations are required to implement these. This is often easier said than done.

At Esker, we embarked on an ESG journey a few years ago and have, in the meantime, implemented several policies to reduce our carbon footprint. One factor remained difficult to gauge, however: the supplier side. In France, for example Esker requests its suppliers to sign a Code of Conduct, which addresses the main ESG aspects such as corruption, fair labour practices and environmental considerations. For our own ESG performance data, however, it was challenging to quantify the impact the procurement side of our operations had.

Since we’re not alone in this dilemma, we decided to make it easier to track a supplier’s ESG performance indicators, not just for ourselves, but also for our customers. Esker Supplier Management now displays risk rating panes that indicate downgraded or upgraded ESG scores, which allows you to verify that ESG standards are met before engaging with a new supplier. It also enables continuous tracking of the ESG score in real time, so that you can rest assured that your supply chain meets the defined standards.

Starting in 2024, the EU’s Corporate Sustainability Reporting Directive (CSRD) requires mandatory reporting of ESG metrics for a number of European businesses. To prepare for these requirements, Esker developed AI-supported capabilities that extract energy consumption from utility bills and travel expenses. This feature will make meeting the reporting requirements much easier.

The recent Forrester report “The Environmental Sustainability Procurement Technology Landscape, Q3 2023” gives clarifying insights into how to work with vendors of solutions that are meant to track an organisation’s carbon footprint. We are excited to be mentioned as a Notable Vendor. The features in Esker Supplier Management assist in reducing the complexity of ESG reporting and in managing compliance with ESG regulations, of which many more are expected to be implemented in the near future. We are happy to be considered part of the solution for the huge challenge that humanity is facing.

Feel free to contact us! We’d be happy to discuss all things ESG with you, and help you figure out how Esker can help.

Catherine Dupuy-Holdich

Catherine has been with Esker for 20 years. As Source-to-Pay Product Manager, she is the market and business expert of all things S2P. She is responsible for overseeing the development of Esker’s S2P suite, including product strategy and vision. Catherine works closely with R&D, sales, marketing and support to ensure customer satisfaction.

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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.

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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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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This new partnership will provide industry-leading software and implementation expertise while driving efficiency within finance teams.

Read full press release here.

Esker UK

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

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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

Catherine Dupuy-Holdich

Catherine has been with Esker for 20 years. As Source-to-Pay Product Manager, she is the market and business expert of all things S2P. She is responsible for overseeing the development of Esker’s S2P suite, including product strategy and vision. Catherine works closely with R&D, sales, marketing and support to ensure customer satisfaction.

Read more insights from Catherine Dupuy-Holdich

As we continue in turbulent economic times, happy and engaged employees are more important than ever to their businesses, making those essential productivity gains that can give the edge over the competition.

Whilst pay-packets and employee benefits are near the top of most job wish-lists, rising costs and high inflation have caused some organisations to place increasing focus on another high priority: job satisfaction.

At Esker we take pride in our process automation solutions benefitting not only the top line of the company, but just as importantly the working environment of those teams involved in Source-to-Pay and Order-to-Cash. We believe it’s vital for organisations to understand that automation isn’t about reducing headcount, it’s about making those employees count, and here’s how:

Eliminating manual, mundane tasks
One of the main employee-focused advantages of automation is the elimination of menial, tedious and time-consuming tasks that can take so much of some team members’ days. These are things like data entry, manually keying invoices, searching for paper documents, and so on. Automating these essential but high-time-cost tasks gives way to a huge window of opportunity for better use of time for these staff.

Focus on value-adding activities
With all those hours freed-up from removing tedious tasks, employees find themselves with significantly more productive time, that they can now use to focus on high-value activities, personal development and creative solutions to problems. By giving them more time to be creative, automation can ultimately lead to more innovation.
Not only that, but automation also allows more time for inter-departmental and supplier relationships: instead of a rushed phone call to answer a question, employees can take the time to discuss properly and develop better working relationships with other teams and suppliers.

Taking pride in their work
The millennial workforce of today demands more than ‘just a job’ – they love to show off what they’re doing (hello, social media!) and have higher expectations for the work that they do. By making way for more meaningful work, increased flexibility, job mobility, and fewer obstacles to getting things done, employees value their responsibilities and take pride in the more purposeful activities that they’re undertaking.

A more productive, engaged and efficient workforce
Automated and controlled workflows in the S2P process make staff life easier. Intelligent and customisable dashboards mean that important information such as POs, invoices, supplier information and even KPIs are available at the touch of a button. Armed with accurate and automated information, human error is reduced, processes become more seamless, and employees are more efficient and engaged.

Esker’s Source-to-Pay suite is designed to help with all of the above: removing departmental siloes, streamlining procurement processes, improving enforcement of policy compliance, and enhancing supplier management with better visibility over the entire buying process.

As the world of technology continues to evolve, an ever-increasing proportion of the workforce are used to having technology play an essential and transformational role in their lives. It naturally follows that embracing this same mindset in the workplace will motivate and create a working environment that gives them the opportunity to meet their full potential.
Using tools such as AI-driven automation, businesses need to invest in digital transformation to get the best of both worlds: a technological foundation that helps attract and retain skilled workers while delivering real, perceptible business advantages.

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.

Read more insights from Jennifer Ball

Esker, a global cloud platform and leader in AI-driven process automation solutions for Finance, Procurement and Customer Service functions, today announced that Gloucester City Homes, an independent Housing Association in the City of Gloucester has signed for Esker’s full Source-to-Pay (S2P) solutions suite to automate its accounts payable processes. Esker successfully competed against other S2P vendors to win the project.

Gloucester City Homes (GCH) has 4,522 rented homes, 323 leasehold homes, 126 shared ownership homes and 107 homeless units, generating over 12,000 invoices annually. Automating its accounts payable processes will enable GCH to be more efficient, manage its cash flow clearly and provide a great level of customer service to its tenants.

With thousands of suppliers to deal with too, the company decided to also use Esker’s supplier management and procurement solutions. These enable the team to have a 360-degree view of supplier information and track every transaction – from request, to receipt of goods and services, enabling full reporting on requisitions, items purchased, orders processed and payments made.

Read full press release here.

Esker UK

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

Read more insights from Esker UK