Thought Leadership

7 Common Reasons Why Source To Pay Transformations Fail

May 21, 2021

7 Common Reasons Why Source To Pay Transformations Fail

At Valtatech, our team has experience leading over 70 source to pay automation projects across the world – we’ve seen it and done it across every industry and organisation type. Whilst each organisation has unique characteristics, we’ve seen a number of common reasons behind why some organisations transformation efforts fail.   We share our top 7 reasons behind those failures.

An unclear vision on what the future of your operations should look like

It is such a cliche but you have to start with the end in mind, we’ve seen organisations embark on digital transformation programs with a strong understanding of the technology that they want to deploy but not a clear vision of how they want their business to run in the future.

A poor understanding of where your processes are now

The other end of the transformation scale is having a clear understanding of where you are now, this helps you map out both the pathway, but also the people, process and technology opportunities and risks that you will face along the way.

Focusing purely on cost savings

Source to pay transformations can deliver some amazing cost savings results, from automating high volume, low value activities to complete spend visibility and analytics the opportunities to be more cost efficient are great. However, there is also a huge amount of real business value that your source to pay operations can drive for the broader business. Leveraging high quality supplier relationships to drive innovation has been achieved for organisations that focus on strategic procurement activities that drive data-driven value for the organisation. Missing this step you will achieve some cost savings but typically not the full cost savings opportunity in front of you and, more importantly, the opportunity to drive real innovation and best practice through your procurement activities.

Choosing Technology first

The fun part of any digital transformation is the opportunity to bring in some cool new technology that will make your lives easier and deliver great results. Of course, all technology platforms would make this claim and many organisations end up focussing more not he technology (the fun bit) than the processes and business policies that would enable that technology to deliver on its promise. The result? A great piece of technology that is not fit for purpose. Organisations should map out their existing processes and their to-be requirements before engaging with any technology providers so that they can make an accurate assessment on whether source to pay solutions are fit for purpose

No baseline data

Do you know how much it costs your business to process an invoice? How about raise an order to buy something? If you don’t you are going to struggle to be able to accurately pull together a business case for source to pay transformation or be able to track whether you are making progress or not

No targeted supplier on boarding program

Suppliers are such an important factor in your source to pay transformation but when treated as an after thought, organisations find themselves with poor uptake of electronic invoicing and sourcing opportunities and not realising the benefits that you expect.

Poor user training and communication

From our experience we know that end users particularly dislike change and the window to win them over and become advocates of the system is particularly tight. We have seen that organisations that put user experience front of mind have the most successful rollout of source to pay transformations realising program benefits in-line with expectations

Keen to avoid these mistakes? The first step in any change is benchmarking your current operations against others in your industry. Take our free online assessment today to benchmark your operations.

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