SOURCE TO PAY
Managing
the operational and supply-chain impact of the coronavirus
resilient and competitive cost base , according to McKinsey .
The steps that Chief Procurement Officers ( CPOs ) take now can also cement their positions as critical creators of value and true strategic partners in the organization . It recommends :
• CPOs can consider rolling out a contract digitization solution that will allow them to map , query , and monetize contract terms going forward .
• Rethink the supply chain - CPOs may need to accelerate the onboarding of new suppliers while working on a safe and efficient qualification process .
• CPOs can build resilience in the supply chain by leading a comprehensive analysis across the entire supply-chain life cycle .
Organizations waste
3-4 %
of their overall external spend on excessive transaction costs , inefficiency , and noncompliance
For an organization with an annual spend of
$ 2bn
eliminating that leakage could send
$ 70mn
million a year straight to the bottom line
Industry benchmarks suggest that most organizations waste 3 to 4 percent of their overall external spend on excessive transaction costs , inefficiency , and noncompliance . For an organization with an annual spend of $ 2 billion , eliminating that leakage could send $ 70 million a year straight to the bottom line .
Companies must identify the best targets for automation within their own processes . Organizations can do this by first evaluating the current level of automation they have implemented , compared with what is technically achievable for each task in the source-to-pay process . They can then estimate the value of closing each gap . miningglobal . com 85