January 29, 2016 | Written by: Matt McGovern
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Do you have unacceptable levels of savings leakage or off-contract spending? Does poor supplier visibility often lead to poor business decisions by your procurement team? Chances are your main culprits are disconnected processes—and solutions.
Global companies face significant challenges to identify, capture and sustain savings—particularly when upstream and downstream processes are not well connected.
This lack of integration limits enterprise spend and savings visibility. It also hinders effective sourcing, supplier management and risk mitigation.
For years, this has been a challenging problem with no easy solution. In fact, 41% of best-in-class procurement organizations say the need to reduce the complexity of the source-to-payment processes is a top priority.
The Aberdeen Group recently published a research report on the topic entitled Source-to-Pay Procurement Transformation: Tying the Pieces Together. In that report the authors say it’s time to recognize that these pressures exist and “consider the vision of an end-to-end Source-to-Pay process as well as the need to connect the upstream and downstream processes in order to maximize efficiency and shrink the time to value while streamlining and reducing processing costs.”
We couldn’t agree more. That’s why IBM has developed the IBM Enterprise Source-to-Pay (S2P) solution, an integrated offering connecting upstream procurement processes, such as contract management, with downstream processes, such as expense management and invoicing.
Such a ‘One Stream’ Procurement approach provides a single set of connected S2P processes, eliminating the primary savings leakage and compliance challenges most procurement organizations face. A Source-to-Pay solution provides significant value including:
- The ability to track actual versus projected spend
- Real-time supplier and contract compliance
- Enabling procurement strategy to drive buying decisions
Combining upstream and downstream procurement to provide a single set of connected processes and solutions—that’s “One Stream’ procurement— and best-in-class procurement organizations seem to recognize it as the future of procurement.
Be sure to download a copy of Aberdeen Group’s Source-to-Pay Procurement Transformation: Tying the Pieces Together. Or visit the IBM S2P Solution page.