Source-to-Pay (S2P) should be viewed as a strategic approach to optimise every step of the procurement journey. As the name suggests, it covers the entire procurement process, including identifying requirements, sourcing and onboarding the right suppliers, negotiating terms, creating contracts, placing orders, receiving the goods or services, processing invoices and making payments.
Implemented correctly, the right approach to a tech-enabled S2P transformation can unlock greater value from procurement, with lower organisational costs and more opportunities to pursue new sources of value. It’s typical to see sustainable savings of at least 2%–5% of addressable spend from successful S2P transformations. They can also strengthen compliance, improve collaboration and trust, enable better data, forecasting and visibility of spend, and help to unlock the potential benefits of AI.
Unfortunately, however, too many businesses fail to reap the anticipated advantages from their S2P transformation, with the result that investment and resources are wasted and the full benefits remain unrealised.
At KPMG, we work with organizations of all sizes and across all industries on a diverse range of S2P transformations. In our experience, there are four key areas to focus on to get it right first time: