PROCUREMENT 101

Funding Your 2025 Source-to-Pay Transformation

Introduction

As organizations prepare for the challenges and opportunities of 2025, the need to modernize procurement processes is critical. Source-to-pay (S2P) transformations are at the forefront of this evolution, enabling businesses to streamline operations, maximize savings, and drive strategic value across the procurement cycle.  

Any digital transformation requires more than just selecting the right software — it demands a strong business case that aligns with the organization's broader goals.

Building a Strong Business Case

As organizations begin planning for S2P transformation, building a solid business case is crucial to ensure stakeholder buy-in and secure the necessary funding. Here are some key recommendations for organizations looking to develop a strong business case for their 2025 transformation:

ALIGN S2P TRANSFORMATION WITH BUSINESS OBJECTIVES

To gain executive support, ensure your S2P transformation aligns with the organization's broader strategic goals. Whether it’s improving cost efficiency, enhancing supplier collaboration, or driving sustainability, or reducing supply chain risk, positioning the transformation as a solution to current business challenges makes the investment more compelling. 

QUANTIFY EXPECTED BENEFITS

Executives are more likely to approve the transformation if they see a clear return on investment (ROI). Quantify the expected benefits of S2P transformation, such as reduced operational costs, improved spend visibility, faster procurement cycles, and compliance with new regulations. Presenting both short- and long-term financial gains will solidify the business case. 

HIGHLIGHT INDUSTRY TRENDS AND COMPETITOR ACTIVITY

Many organizations are actively modernizing their procurement processes. Use industry benchmarks and case studies to show how peers and competitors are leveraging S2P technology to gain a competitive edge. Highlighting this risk of inaction can create urgency for the transformation. 

ADDRESS COMPLIANCE AND RISK MITIGATION

Many industries are facing increasingly strict regulatory environments where emphasis can be placed on how S2P solutions can improve compliance and mitigate supplier-related risks. By integrating these capabilities into the business case, you can address not just cost savings, but also risk reduction—an important consideration for risk-averse stakeholders. 

PLAN FOR CHANGE MANAGEMENT

A successful S2P transformation requires more than just new technology; it demands organizational change. Be sure to include a plan for training, support, and user adoption in your business case to demonstrate preparedness for the challenges ahead. A clear change management strategy can help ensure a smooth transition and minimize disruptions. 
As the procurement landscape evolves rapidly, digital transformation is a critical part of future-proofing your business. Those planning to undertake S2P transformations in 2025 will be better positioned to navigate future challenges, drive operational efficiency, and gain a competitive advantage. By aligning the transformation with your strategic goals, quantifying expected benefits, and planning to successfully manage the change, your organization can build a compelling case for investment. 

Optis Can Help

Optis is here to guide you every step of the way. With our extensive experience in source-to-pay solutions and transformation strategy, we can help you design and execute a plan that drives long-term success, achieving the targets set in the business case. Contact us today to discuss how we can support your 2025 S2P transformation journey. 
Author

Amin Moh, Director

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