PROCUREMENT 101

Bridging the Gap Between Your S2P Program's Expectations and Reality

Introduction

Implementing a source-to-pay (S2P) solution promises significant rewards: cost savings, operational efficiencies, and enhanced compliance. Yet, many organization are underwhelmed by the results post go-live. If you're questioning whether your S2P solution is achieving its full potential — enabling $50M in annual savings per $1B in spend it's time to evaluate whether it's truly positioned to be.

In this blog, learn how to identify common gaps and take actionable steps to close them, finally meeting or exceeding your original S2P business case.

Common Indicators of underperformance

  • Low Adoption Rates: Employees continue to rely on manual processes instead of utilizing the system, hindering overall efficiency and process standardization. Most of your suppliers aren’t managing their information through the portal, RFPs are rarely launched on the platform, and invoices still come through on paper.
  • Poor Data Quality: Inaccurate or incomplete data limits the system’s ability to automate tasks and generate reliable reports, reducing decision-making capabilities.
  • Siloed Processes: Lack of process and system integration between procurement, invoicing, and supplier management creates fragmented workflows, preventing a seamless end-to-end process.
  • Missed Savings Targets: Ineffective sourcing strategies or a lack of spend visibility result in unrealized savings, limiting the system's impact on cost reduction goals. 
Unfortunately, these challenges plague our industry. Thankfully, there are a number of prescriptive measures you can employ that mitigate replacing your solution and fit in this year's budget.

Bridging the gap: from current state to real roi

To maximize the ROI from your S2P solution, it's essential to take a comprehensive approach that addresses both the technological and organizational factors. Here are key steps to help bridge the gap and align your S2P system with your strategic goals:

Conduct a Maturity Assessment

Begin by assessing your current S2P processes, systems, and capabilities against best practices and industry benchmarks. A maturity assessment helps identify areas of strength and pinpoint gaps in your system’s ability to support long-term strategic goals. It also enables you to prioritize improvements that will have the greatest impact on ROI. Unlike most consulting firms, Focus by Optis offers the ability to conduct a maturity assessment with comprehensive results in a matter of weeks. Focus can be leveraged to help create an actionable roadmap of high-impact improvements to maximize ROI

Identify Gaps in Capabilities

Evaluate whether your current S2P solution meets the needs of your and your organization’s objectives. Are there gaps in automation, spend visibility, or supplier management? Do you need help revitalizing aged processes and configurations? As your organization matures, existing technology should enable change – not hinder it. Identify the capabilities required to close these gaps—such as better data integration, advanced analytics, enhanced supplier collaboration, or overdue configuration maintenance—and define if you are missing specific functionalities your system should deliver. 

Ensure the Right Enablers Are in Place

A successful S2P solution doesn’t rely on technology alone. It requires the right enablers across key areas:

  • People & Skills: Ensure your team has the skills and expertise to fully leverage the system. Invest in training and development to empower users to embrace new processes. Aside from training, sustaining new processes is a frequently overlooked yet extremely important team element to consider. Do you have an in-house team in place with the mandate to focus on continuous improvement? By providing your sustainment team with the goals needed to maximize ROI, you can track key performance metrics. Read more on Optis’ perspective on sustainment. 
  • Technology: Evaluate whether your current technology stack supports your goals. Integrating your S2P system with your ERP, CRM, and other platforms can provide a more unified view of spend and improve decision-making. 
  • Governance & Policy: Establish clear governance structures and policies that ensure compliance, standardize processes, and promote system adoption across the organization. 
  • Strategy & Alignment: Align your S2P strategy with broader business objectives. Ensure that the system’s capabilities are designed to meet the needs of all stakeholders and drive value across the organization. 

Optimize Processes and System Use

After identifying the necessary capabilities and enablers, focus on process optimization. Revisit workflows, ensure user adoption, and refine the system’s configurations to match your organization’s evolving needs. This step may include leveraging advanced features like AI-driven analytics, supplier risk management, or automated contract lifecycle management to drive incremental value.

Delivering on Expectations

Per $1B in spend, your organization should be enabled to capture over $50M in annual savings. Your S2P solution is a very powerful tool, but like any tool, it requires maintenance, the agility to adapt to evolving organizational objectives, and user engagement to deliver maximum value. By addressing gaps in capabilities, processes, and adoption, you can ensure your solution doesn’t just meet its ROI goals it exceeds them. 

At Optis, we specialize in helping organizations transform their source-to-pay processes for long-term success. We can help you navigate these steps, ensure the alignment of your solution with industry best practices, and drive greater ROI. 

Ready to hit your ROI goals? Contact Optis today to learn more. 

Author

Sam Bowyer, Director

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