5 Key Benefits of Source-to-Pay process Automation

Advantage Source-to-Pay(S2P)

The Source-to-Pay(S2P) process begins with identifying and evaluating relevant suppliers, contracting with those suppliers, placing orders, monitoring the supply of the ordered products and services, authorization, and the final release of payment.  A Source-to-Pay cycle is a holistic approach that covers end-to-end procurement lifecycle.

The automation of the S2P process is a natural outcome of the holistic digital transformation. And the S2P software enables multiple activities such as auctions, spend analysis, purchasing categories management, purchase requisitions, sourcing events, billing and vendor relations within the same solution.

And the journey towards a Source-to-Pay (S2P) transformation can produce tremendous efficiencies for Procurement by integrating and leveraging synergies across upstream sourcing and downstream Procure-to-Pay processes. For example, Zycus’ integrated Source-to-Pay automation provides new data-driven insights enabling data accuracy for spend analysis, cash management and removes siloes.

Learn More: Zycus Source to Pay Suite


S2P Digitization Tool

Source-to-Pay Digitization Diagnostic

Benefits of Source-to-Pay Digitization

Automated source-to-pay reduces maverick spending, minimizes supply risk, streamlines the procurement process, and unlocks cost savings. Digital transformation of the source-to-pay cycle can help organizations maximize ROI and build a robust supplier network. Here are 5 key benefits for digitizing the S2P process-

  1. Synergy based savings
  2. Ensuring compliance
  3. Diversify and minimize risk
  4. Seamless technology integration
  5. High User Adoption

1. Synergy based savings

Automating manual tasks helps save time required to perform tasks in the workflow, and unlocks savings on your spending budget.

According to Ardent Partners, firms that leverage spend analysis directly into their sourcing projects can save on an average of 24%- 41% more per project. Eliminating any sourcing/contracting process gaps can reduce savings leakage up to 38%.

2. Ensuring compliance

The automated Source-to-Pay process is designed with keeping in mind the regulations and is built in to ward off any contract or policy violations before they even happen. A guided buying approach is a cornerstone to ensure compliance. Zycus’ S2P automation solution guides the user through the requisition process providing value by ensuring off-contract spending is curbed and the buyer is guided to the correct suppliers, products, and services.

Learn More: 5 Tips for Effective Source to Contract During Crisis

3. Diversify and minimize risk

The pandemic has been a great reminder for all organizations to build resilient supply chains and spread the risk by having a robust network of suppliers. Furthermore, S2P automation helps in building a flexible yet diversified supplier base. This empowers the sourcing team to drive much higher value by streamlining the supplier base and minimizing risk by ensuring business continuity.

Additionally, having a single source of truth for your supplier base helps in building a collaborative relationship and ensures visibility. Zycus’ Supplier Network portal seamlessly connects buyers & suppliers on a single platform and manages all kinds of information including contracts, invoices, purchase orders, and other regulatory documents. It reduces manual intervention and allows resources to focus on strategic activities.

4. Seamless technology integration

An integrated source-to-pay automation system enables a seamless workflow across the source-to-pay lifecycle. All the modules of the cycle are inter-connected and data flow is consistent and dynamic. It becomes very easy for procurement teams to plug in data maintaining the ease of information flow. Zycus’ advanced S2P automation has a rapid and simplified deployment process ensuring there is a smooth process flow.

5. High User Adoption

The best source-to-pay technology platforms are those which are used by a large number of users. It is only then the organization can truly reap the benefits of a digitized system. One of the critical elements enabling higher user adoption is having a user interface that is not only easy to use but also consistent across different source-to-pay modules. Higher user adoption helps in maximizing ROI.

Learn More: 5 Tips for Effective Source to Contract During Crisis 


Organizations are increasingly depending on S2P strategies to realize savings. It is crucial to have a strategic outlook for its supplier management activities and back those strategies by actualizing the potential savings. Definitively, Source-to-Pay automation enhances visibility into the procurement process resulting in defined savings and improved compliance. So, the next question should be “how fast?”

Tanmay Dhar

Tanmay is an agile growth marketer with over 7 years of experience. He has a diverse set of skills including market research, performance marketing, copywriting and GTM strategy. In the past 7 years, he has designed integrated demand generation campaigns with an Omni channel approach to drive growth and kick-start brands. He has built marketing-driven growth engines driving sustainable bottom-line growth.

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Tanmay Dhar

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