4
Building the
business case for
S2P investment

Convincing stakeholders to invest in Source-to-Pay requires a clear demonstration of the value it delivers across the organization.

By aligning the proposed solution with broader business objectives—like cost control, risk mitigation, and improved supplier relationships—organizations can highlight S2P software as a key driver of operational excellence and long-term value creation.

How S2P generates ROI

Proven ROI and cost-saving potential

Investing in a Source-to-Pay (S2P) solution is a strategic move that delivers measurable financial benefits. Organizations implementing S2P solutions often see significant cost reductions, efficiency gains, and a clear return on investment (ROI) within 12 to 18 months.

5-10%

Cost savings on spend

Organizations using S2P reduce procurement costs by 5–10% annually by consolidating spend, negotiating better supplier terms, and eliminating maverick spending.

50%

Operational cost reductions

Automating processes like purchase approvals, invoice matching, and reporting reduces the time and resources required for procurement operations by up to 50%.

30%

Error mitigation

By automating tasks prone to human error, such as manual invoice processing, S2P decreases costly mistakes and duplicate payments by 30% or more.

Breeding organization resilience and agility

In dynamic service sectors, agility isn’t just beneficial — it’s essential. An S2P solution empowers organizations to rapidly adapt to market shifts, vendor disruptions, and evolving client expectations. This agility fosters resilience across the service supply chain, enabling:

Optimized vendor sourcing: Swiftly identify and engage alternative service providers when disruptions occur — such as workforce shortages or logistical delays — while maintaining compliance and service quality.
Adaptive procurement strategies: Utilize real-time analytics to adjust procurement approaches based on service demand trends, cost fluctuations, or shifting client requirements.
Proactive crisis management: Automated workflows and centralized data enable procurement teams to mitigate risks during crises, from sudden vendor exits to unpredictable service demand spikes, minimizing operational disruptions.

Define outcomes of success

Measuring the success of an S2P implementation is essential to demonstrate its value over time. Establishing relevant success outcomes ensures progress is tracked and benefits are quantified.

Example outcomes to measure success:

Spend under management (%): Track the percentage of total spend managed through the S2P platform. Higher spend under management indicates stronger procurement control and reduced maverick spending.
Procurement cycle time: Measure the time taken to complete key procurement processes, such as purchase order creation, supplier onboarding, or invoice approval. Reduced cycle times reflect improved efficiency.
Cost savings achieved: Monitor savings from strategic sourcing, contract negotiations, and improved spend visibility. This includes both direct savings (price reductions) and indirect savings (process efficiencies).
Supplier compliance rate: Evaluate the percentage of suppliers adhering to contracts, regulatory requirements, or ESG standards. Higher compliance rates indicate better supplier management.

Highlight the value of S2P for the whole organization

Securing investment from key stakeholders is critical for successful S2P adoption. To build a compelling case, by tailoring the value proposition to address specific concerns and goals of different decision-makers within the organization procurement teams can demonstrate the strategic value a
S2P would provide.

Who benefits from a S2P solution?

Finance leaders: S2P improves spend visibility, enables accurate forecasting, and ensures better cash flow management. For example, faster invoice processing reduces days payable outstanding (DPO) and supports liquidity goals.
Procurement teams: The supply chain benefits from increase operational efficiency, reduced cycle times, and improved supplier relationships. S2P tools provide procurement teams with the visibility and control needed to align with organizational priorities.
Sustainability and compliance teams: S2P ensures adherence to ESG goals, regulatory standards, and ethical sourcing practices. Features like supplier risk analysis and audit trails make it easier to meet compliance requirements and report on their success to the relevant authorities.