Procurement leaders understand that legacy systems and fragmented processes are no longer sustainable in today’s dynamic business environment. A modern source-to-pay (S2P) system offers an integrated solution that enhances visibility, control, and efficiency across the procurement lifecycle. In this blog, we walk through the foundational elements of building a business case for a source-to-pay system that clearly articulates value, risk, and return.
Before discussing best-fit solution providers, implementation partners, and specific features, start by identifying the challenges your organization is seeking to solve. These issues should be tied to measurable inefficiencies or strategic gaps. Common drivers for change include:
Earning executive buy-in requires a strong, data-driven business case that demonstrates how the investment will deliver across broader business objectives. To resonate with decision-makers, link these objectives to tangible outcomes like cost reduction, operational efficiency, and risk mitigation.
Establishing what success looks like is critical to maintaining alignment throughout the project lifecycle. Your business case should outline both short-term milestones and long-term goals, supported by measurable key performance indicators (KPIs).
Recommended success metrics look like:
System Adoption Rate: Percentage of total spend processed through the new platform.
Realized Savings: Reductions in cost relative to pre-implementation baselines.
Process Efficiency: Cycle time improvements in sourcing, onboarding, and payment workflows.
Compliance Performance: Spend under contract and usage of preferred suppliers.
User Feedback: Stakeholder satisfaction levels and system usability scores.
For more guidance on how to identify and start tracking your procurement performance, check out our recent blog post.
One of the biggest mistakes organizations make is underestimating the full cost of implementing and sustaining a source-to-pay system. Beyond software licensing, your business case should account for:
A well-prepared business case is an important first step towards securing alignment and funding for a source-to-pay system. Taking the time to quantify impact, define success metrics, and account for total cost of ownership builds credibility and ensures your proposal resonates with all stakeholders. For guidance on initial strategy through implementation and sustainment, Optis specializes in helping organizations navigate source-to-pay transformations. Contact us today to learn more.
