โMost organizations waste ๐ฏ-๐ฐ% ๐ผ๐ณ ๐ผ๐๐ฒ๐ฟ๐ฎ๐น๐น ๐ฒ๐ ๐๐ฒ๐ฟ๐ป๐ฎ๐น ๐๐ฝ๐ฒ๐ป๐ฑ on excessive transaction costs, inefficiency, and non-compliance. For an organization with an ๐ฎ๐ป๐ป๐๐ฎ๐น ๐๐ฝ๐ฒ๐ป๐ฑ ๐ผ๐ณ $๐ฎ๐, eliminating that leakage could send $๐ณ๐ฌ๐ ๐ฎ ๐๐ฒ๐ฎ๐ฟ ๐๐๐ฟ๐ฎ๐ถ๐ด๐ต๐ ๐๐ผ ๐๐ต๐ฒ ๐ฏ๐ผ๐๐๐ผ๐บ ๐น๐ถ๐ป๐ฒ"
- McKinsey & Company, A Roadmap for Digitizing Source to Pay
Organizations are under increasing pressure to better manage their financial health via tighter spending policies and controls. Companies that fail to implement a robust spend management system that can adequately capture, manage, and control every dollar that leaves the company bank account will be forced into a reactive approach to managing their costs and cash positions.
A disparate set of point solutions along with organizational data silos will introduce challenges such as rogue spending and low-value manual work to unreliable records and access control risks. It is important to provide a single source of truth for all spending data which can be accessed in real-time to promote better transparency, accountability, and collaboration.
Transforming into a spend management solution would involve expanding current capabilities beyond invoice processing to gain a more holistic view of the spending, making better decisions about how to allocate resources, and reducing the overall costs.
๐ฐ ๐๐๐ฒ๐ฝ๐ to take in transforming to a complete Spend management system
๐ญ. ๐๐ป๐๐ฒ๐ด๐ฟ๐ฎ๐๐ฒ ๐๐ถ๐๐ต ๐ผ๐๐ต๐ฒ๐ฟ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐ ๐๐๐๐๐ฒ๐บ๐: This will allow the AP solution to access data from other areas of the business, such as procurement, inventory, and finance. This will provide a more complete view of spend and make it easier to identify opportunities for savings.
๐ฎ. ๐จ๐๐ฒ ๐ฑ๐ฎ๐๐ฎ ๐ฎ๐ป๐ฎ๐น๐๐๐ถ๐ฐ๐: The AP solution can use data analytics to identify trends, patterns, and areas of opportunity for cost savings. This data can also be used to create budgets and forecasts.
๐ฏ. ๐๐๐๐ผ๐บ๐ฎ๐๐ฒ ๐๐ฎ๐๐ธ๐: The AP solution can automate tasks such as invoice processing, supplier management, and risk management. This will free up time for AP professionals to focus on more strategic activities.
๐ฐ. ๐ฃ๐ฟ๐ผ๐๐ถ๐ฑ๐ฒ ๐ถ๐ป๐๐ถ๐ด๐ต๐๐ ๐ฎ๐ป๐ฑ ๐ฟ๐ฒ๐ฝ๐ผ๐ฟ๐๐ถ๐ป๐ด: The AP solution can provide insights and reporting that help businesses to make better decisions about how to allocate resources and reduce their overall costs.
By taking these steps, AP solutions can transform into powerful tools that help businesses to manage their spending more effectively.
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