Let’s face it – procurement digitization is no longer optional. Whether you’re tackling sourcing, contracting, or payment workflows, the stakes are higher than ever. The goal? Transform procurement from a cost center to a value creation powerhouse. To get there, you need more than tools – you need strategy, precision, and cross-functional alignment.
Welcome to the Source-to-Contract (S2C) and Source-to-Pay (S2P) revolution. Here’s your real-world guide to getting it done right.
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✅ Dos
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❌ Don’ts
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| Start with Spend Visibility: A dynamic spend cube is your foundation. Categorize and visualize spend by supplier, geography, and category to unlock hidden opportunities.
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Ignore Data Governance: Dirty data is the Achilles’ heel of digitization. Build data cleanup and governance into your roadmap.
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| Define the Leading System: Decide which system takes the lead – ERP, S2C, or CLM – and align your workflows around it.
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Underestimate Integration Needs: Your S2P system must connect seamlessly with ERP, analytics, and supplier management tools.
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| Streamline RFX and Workflows: Digitize RFI, RFQ, and approvals to cut lead times and reduce manual effort.
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Neglect Change Management: Procurement isn’t the only stakeholder—legal, finance, and operations must be engaged early.
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| Automate Contract-to-Payment: Don’t stop at contracting – ensure awarded contracts trigger POs and invoices seamlessly.
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Overcomplicate Reporting: Keep reporting focused on actionable insights – spend compliance, savings realized, and cycle-time reductions.
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| Engage Suppliers Digitally: Use portals for onboarding, performance tracking, and real-time updates.
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Rush the Rollout: A phased rollout ensures smoother adoption and better long-term results.
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Pro Tip: Fund the Journey with ROI-Driven Quick Wins
Skeptics often ask, “Why spend money to save money?” Here’s how to fund your digitization journey with tangible results from the start:
- Target High-Impact Categories:
Negotiate better terms or consolidate suppliers in strategic spend areas.
📈 ROI Snapshot: A 5% reduction in a €50M spend category unlocks €2.5M to fund your system. - Automate for Quick Wins:
Start with easy-to-implement workflows like invoice matching and approval processes.
💡 Actionable Tactic: Reducing maverick spend by 10% frees up budget from compliance gaps. - Track & Celebrate Results:
Use dashboards to show measurable gains in cost savings, compliance, and efficiency.
🥇 Winning Strategy: Highlight savings like “€1M realized in Q1 through smarter sourcing” to win over stakeholders. - Reinvest Savings to Scale:
Turn quick wins into a self-sustaining cycle by using them to fund broader rollouts or advanced analytics tools.
Critical Path to Success
- Cross-Functional Engagement:
Procurement is the driver, but success depends on buy-in from finance, legal, and operations. - Tailored Training for Adoption:
Role-specific, hands-on workshops drive engagement far better than generic e-learning. - Measure Adoption:
Track metrics like system usage, workflow completion rates, and spend visibility to ensure adoption and identify gaps.
The Bottom Line
S2C and S2P digitization isn’t just a tech upgrade – it’s a strategic transformation. Clean data, seamless workflows, and strong stakeholder engagement are non-negotiables. Nail these, and you’ll elevate procurement to a strategic powerhouse that delivers measurable value.
Not sure how? No problem – book your free virtual touchpoint with me today to discuss how I can support your journey to make it rain ASAP.
“What’s dangerous is not to evolve.”
Jeff Bezos, founder of Amazon
