Business

This is why source-to-pay is good for your company

Are you the CFO of your company? Does your company grow every year? Just like every other company you like to maximize the net profit of your company, right? That makes sense of course. Every year you try to increase the profits.  It’s an ongoing process. Instead of trying to gain more revenue from sales, you can try to reduce your internal costs. There is a lot to win. Outsource parts of your procurement can save up to 21% on internal costs. Large companies as Phillips, General Motors and Nobian already exploring the benefits of outsourcing their procurement. 

The purchase department 

The purchase department is responsible for the procurement. Controlling invoices, pay within the right period and terms. For the suppliers of goods, materials and services directly associated with the production of goods and services that a company is providing, these terms repeat often. For indirect procurement, the procurement of goods who are not directly crucial for the production process, like office supplies, there often are a lot of different suppliers. These suppliers have different invoices and different conditions and terms. The whole process of accepting, controlling and paying these invoices are therefore very time-consuming and sensitive to errors. Most of all because this are one-time suppliers. After one order, you probably never place an order again at these companies. There are a lot of those one-time suppliers in your database. This whole process is very labour-intensive. Therefore, large companies choose to outsource the procurement of indirect goods. By replacing the large group of c-suppliers with a single total supplier, saves the company a lot of time and eventually money. Besides the time and money saved by outsourcing the indirect procurement, it will unburden the financial and procurement department too. 

Source-to-pay for your company

Specially for large companies that are done with the time-consuming one-time suppliers with their invoices and terms there is a solution. Outsourcing the source-to-pay process is the solution. With source-to-pay you get rid of all your C-suppliers and replace them for one total supplier. This will reduce your supplier base up to 80%. Just one invoice, one point of contact and one payment term. It will unburden different departments within the company. It will lower the Total Cost of Ownership (TCO) and saves up to 21%. With source-to-pay you outsource the search for the best suppliers with best commercial conditions. Save a lot of time and money with outsourcing the whole ordering process and unburden the financial, logistics and purchasing departments. Choose what’s good for the company and choose for source-to-pay bij Corlido.

Do you prefer to hold the tendering and selecting process in own hands? That is a possibility. With procure-to-pay. Your organization select the suppliers you want and you only outsource the ordering and payment process. Outsource the ordering and payment process means you don’t have to monitor each order yourself, which can be very labour-intensive. With procure-to-pay the company saves a lot of time and money and at the end you decided yourself which suppliers you deal with.

https://www.pexels.com/nl-nl/foto/man-en-vrouw-dichtbij-tafel-3184465/

Colton Eva
the authorColton Eva