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From fragmented landscapes to regulatory hurdles, knowing the Source-to-Pay optimization challenges in APAC is crucial. As procurement leaders begin their journey of Source-to-Pay (S2P) optimization for 2024, they will likely face unique challenges, especially in the dynamic Asia-Pacific (APAC) market. Source to pay process optimization challenges in itself is quite a vast concept that comprises accounts payable, managing the timely processing of contracts, automation to a level, monitoring spends, and analyzing supplier performance.
CPOs use multiple technologies to enhance their source to pay process in the current procure to pay process. This practice, in turn, limits the overall integration of procurement tasks and hampers source to pay process optimization.
Read more: 2024 Digital Procurement Survey: Asia Pacific Key Insights
In this blog, we’ll look at source to pay process optimization Challenges in APAC. We will also look at a roadmap of best practices that can help CPOs overcome these challenges of S2P optimization
Heineken Leverages Zycus’ GenAI Source-to-Pay Platform along with iSaaS Solution for Data Driven Decision Making
The efficient procurement operations of the APAC region is a dynamic yet complicated market with its rich and diverse culture, its commitment to innovation and a growing economy as well as its stringent compliance rules and regulations. Let’s take a few of these challenges in detail below that CPOs face while dealing with source to pay process optimization in the APAC region:
1. Procurement Leaders Choosing Siloed Solutions
Most procurement decision-makers choose solutions that does not automate the procurement processes from an end-to-end perspective but only offers a few tools that optimize only a small percentage of the S2P process. Leaders spend thousands of dollars on solutions which inevitably leads procurement teams to operate in the same manner as they did before, without the help of the new solution.
2. Incomplete and Inaccurate Data
The goal is to turn data into information, and information into insight.
– Carly Fiorina, former chief executive of Hewlett-Packard Company or HP
Data is the source of all truths! It is extremely important for better procurement efficiency to spend resources on the maintenance of accurate and reliable master data. Supplier information such as names, email IDs, bank details, etc., are examples of data that need to be consistent and accurate. This inconsistent data runs across the Source-to-Pay Suite leading to errors.
3. Complicated User Interface and User Experience
An intuitive user interface is a game changer for its users. Some S2P solutions provide a super complicated UI for procurement process, which requires hours of training and resistance from users.
4. Supplier Resistance
Using a poorly constructed Source-to-Pay tool can hamper supplier relationships with suppliers. Once procurement teams onboard a new S2P platform, their suppliers are bound to navigate through it to continue business. A complicated S2P tool can cause supplier management to push back on existing and new orders due to extra effort and tool nuances.
The Source-to-Pay Process is a comprehensive approach that encompasses all activities from the initial strategic sourcing of goods and services to the final payment. This end-to-end process is integral to effective procurement and supply chain management, ensuring that organizations acquire goods and services in the most efficient and cost-effective manner.
5. Descriptive Analytics
Most S2P platforms offer insights via descriptive analytics. The issue with descriptive analytics is that it is based on historical data that tells you “what has happened” instead of “what is likely to happen”. Procurement teams are unlikely to make sound decisions based solely on historical data.
It’s established that it’s extremely important for CPOs to assess and enhance the readiness of their procurement processes. With the help of the S2P for 2024 Checkup Tool procurement teams can assess their procurement function’s maturity, and 2024 readiness in 5 minutes, by answering 15 simple questions!
A Roadmap to Overcome Source-to-Pay Optimization Challenges in APAC:
“Transforming the procurement technology portfolio requires understanding where technology is now, where it is going and how to get there.” – Gartner’s 2023 Strategic Roadmap for Source-to-Pay Technology
Now that we’ve understood the challenges persisting in the APAC region about Source-to-Pay Optimization, let’s have a look at a few pointers that procurement leader should keep in mind that will help them overcome these issues:
- Opt for a one-stop Cognitive Source-to-Pay solution suite that covers the end-to-end activities across the source-to-pay process.
- An intuitive and customizable S2P user interface with easy functionality is likely to eliminate the need for long training hours and resistance from users.
- Rely on Predictive Analytics to derive insights and decision making. According to Forbes, an intelligent data management decision-making tool is necessary for entire procurement process in order to succeed and improve market share.
- Make sure your S2P provider offers extensible applied decision-making via APIs to cover new and evolving requirements. For example, the Zycus Merlin Assist Chatbot can be easily extended to your collaboration apps, such as Microsoft Teams.
- Do not hesitate to invest time and resources in maintaining the accuracy and relevance of your master data! Remember: Data flows throughout your source-to-pay process.
- Make sure your S2P platform offers a single-facing experience for your supplier management that is easy to adopt and use.
Real-World Success Story: Heineken
Heineken has successfully leveraged Zycus’ GenAI-based Source-to-Pay Platform along with iSaaS to optimize their procurement processes and achieve significant efficiencies.
To see how these best practices can transform your S2P process, we invite you to request a demo today and take a step toward optimizing your procurement process for the future.
Related Reads:
- eBook: CPONext- 40 Procurement Leaders to Watch Out For – APAC Edition
- On Demand Webinar: How Generative AI is Transforming APAC Businesses?
- Unlocking Efficiency: The Advantages of E-Procurement Solutions in the APAC Region
- Success Story: 4 Asia-Pacific Case Studies of Successful Procurement Transformation
- Solution: Zycus’ Generative AI in Source to Pay software
- Solution: Zycus’ Procure to Pay software
- 7 Supplier Relationship Management Strategies for Asia Pacific Organizations
- Top 4 Procurement Trends 2024 and Beyond: Asia-Pacific
- eBook: CPONext- 40 Procurement Leaders to Watch Out For – APAC 2nd Edition
- Success Stories: 4 Asia-Pacific Case Studies of Successful Procurement Transformation
