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Challenges in procurement and how S2P addresses them

Procurement and finance teams face an array of challenges that hinder efficiency, visibility, and cost control. These challenges span fragmented systems, manual processes, compliance issues, and supplier risks.

However, Source-to-Pay (S2P) platforms offer powerful tools to address these hurdles, enabling organizations to transform procurement into a strategic enabler of success.

Outcome overview of S2P adoption

With a clear overview of the challenges that Source-to-Pay solved, and the outcomes it can achieve, a business case becomes clear.

		Impact of challenges			How S2P resolves them
Lack of spend visibility		Missed cost-saving opportunities, inefficient supplier negotiations, and budget overruns.		✓	Consolidates spend data with real-time dashboards, offering actionable insights for optimized decisions.
Fragmented systems and data silos		Inefficiencies, data errors, and lack of continuity across the procurement lifecycle.		✓	Unifies sourcing, procurement, and payment processes within a single platform.
Inefficient manual processes		Time-consuming workflows, delays, and increased risk of human error.		✓	Automates approvals, contract management, and invoice processing, reducing bottlenecks.
Compliance risks		Financial penalties, reputational damage, and operational disruptions from non-compliance.		✓	Provides real-time compliance tracking and alerts for adherence to regulatory and ESG standards.
Difficulty in supplier collaboration		Delays, misaligned expectations, and disputes due to poor transparency and communication.		✓	Enhances collaboration through integrated communication tools and supplier performance tracking.
Off-contract spending		Maverick spending undermines cost-saving strategies and creates compliance risks.		✓	Enforces guided buying with pre-approved catalogs, reducing unauthorized purchases.
Limited scalability		Bottlenecks and inefficiencies as procurement complexity increases with business growth.		✓	Cloud-based platforms scale seamlessly to accommodate additional suppliers and regions.

		Impact of challenges			How S2P resolves them
Poor spend forecasting		Limited financial visibility caused by the inability to capture and track committed spend.		✓	Accurate forecasting of expenditure and cash flow by capturing procurement commitments early in the process.
Time-intensive audits and reporting		Cumbersome processes and error-prone reporting delay compliance checks and audits.		✓	Automates reporting with real-time data for audits, compliance checks, and performance reviews.
Supplier risk and disruption management		Ineffective monitoring of supplier risks, leading to operational and financial disruptions.		✓	Proactively assesses risks with advanced tools and mitigates disruptions through supplier tracking.
Procurement cycle delays		Lengthy cycles delay responsiveness to market demands and operational needs.		✓	Streamlines workflows and automates approvals to accelerate procurement cycles.
High cost of procurement operations		Inflated costs due to inefficiencies and reliance on manual workflows.		✓	Reduces costs through process optimization and automation, enabling reinvestment into strategic goals.