ISG Momentum® Strategic Perspectives - Enabling Enterprises to Transform Source-to-Pay with Intelligent Automation
The pandemic has battered supply chains globally. With more than 94 percent of the Fortune 1000 seeing supply chain disruptions, the urgency to reconfigure supply chains to build resilience for the future is evident in organizations. Supply chain transformation hinges on a critical foundational block – digital technology. Because some companies that have already adopted digital witnessed minimal disruption to their processes during the pandemic, automation adoption in supply chain processes is expected to accelerate further and reach 58 percent in the next 1 to 2 years and 73 percent in the next 3 to 5 years.
One key lever to achieving supply chain transformation is the end-to-end modernization of the source-to-pay (S2P) process. Current S2P processes do not provide visibility into critical financial metrics such as data relating to cash flow, order fulfillment and spend. More than 60 percent organizations believe that lack of visibility into their supply chain data is a significant risk management issue.
Extending automation into the source-to-pay function can give companies up to 95 percent granular spend visibility, enabling them to easily determine where strategic contracts exist to meet specific procurement requirements, thereby helping to optimize the supply chain4. By automating the source-to-pay process from supplier management to spend analysis, enterprises can drive significant process efficiencies and get valuable insights on the supply market and supplier performance.
Intelligent automation (IA) – the integration of robotic process automation (RPA) with cognitive automation technologies – has opened opportunities for enterprises looking to transform source-to-pay operations and drive strategic business results for supply chain improvement. In this paper, we highlight how intelligent automation can transform the source-to-pay process, discuss its applications across the value chain and provide insights on how service providers can capitalize on the opportunity.
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