During the last few years, Dynatos has focused its products and services on Accounts Payable (AP) processes by automating supplier invoicing and approval workflow activities.
Based on this experience, we understand the difficulties our customers face in reaching excellence in the entire source-to-pay process. These difficulties partially arise from inefficiencies in the procurement process leading up to invoice handling.
Having identified these issues, we here at Dynatos have decided to focus our expert advice and services on AP activities and the entire “Source-to-Pay” (S2P) process.
Spend under management?
How is your organization spending its capital? Is there visibility on what you are spending your capital on? Are there metrics in place to measure your performance?
Spend management goes beyond buying the lowest-priced supplies. A successful spend management strategy is aligned with your company’s business goals and helps you make the right decisions while establishing the best-fit vendor relationship.
Everybody buys something using the company’s budget. Therefore, every person in the organization is involved in the spend management process. Your goal should be to get all spend under management so you can drive profitability and successfully achieve your business goals.
Companies define their own metrics based on their internal goals to improve performance. As a consequence, we recommend our clients focus their efforts on activities that can be measured to improve the efficiency and effectiveness of the S2P process, aligned with their internal goals.
It is a great feeling to see how companies and clients experience valuable outcomes after the entire S2P process is optimized. When this is done right, the result is the sum of many underlying opportunities capitalized into valuable measures. To name a few of these opportunities: improving the visibility of total company spend, avoiding maverick spend, and improving contract pricing negotiations with most of your suppliers.
Other opportunities related to reducing process costs include eliminating suboptimal processes, reducing administrative work, and ensuring maximum process adoption by all users throughout the company.
What gets measured gets improved
By working on the opportunities mentioned above, we can effectively help our customers in obtaining the following results:
Direct cash flow effect
A direct cash flow effect occurs when there is more income or less cost from one day to another. An example is supplier discounts: bundling expenses in a single contract increases the pressure on the market, allowing discounts to be made. This leads to a direct “cash flow effect.”
Increase of efficiency
Efficiency benefits are often translated to release Full-Time Equivalents (FTEs). For example, there is time-saving in procurement or management activities. This time is quantified in units of FTE and, therefore, in money since every FTE has a price. This is, however, not a direct cash effect because the savings are not tangible in the short term. The number of employees is not reduced from one day to another. However, they can use the saved time for other activities, making the indirect savings visible.
Increase of effectiveness
This category includes qualitative benefits. These are often difficult to quantify since they refer to service improvement, increased compliance, and higher internal/external customer satisfaction. Even though these benefits are present, they cannot be directly identified with a “price tag.” To measure these benefits, regular customer satisfaction surveys are used.
Coupa’s spend management platform
In our mission to become our customers’ financial process advisors, we focus on selecting the best tools to help you achieve your goals. For spend management, we have chosen the Coupa Spend Management Suite as the best option in the market.
This solution will help achieve considerably higher operating profits, as the overall procurement costs will be significantly lower over time. In addition, it will help improve compliance and encourage collaboration within the various business departments.
Coupa is a cloud-based platform solution with a committed focus on customer success and profitability. Coupa provides measurable business value by seamlessly integrating with your business processes to help meet strategic company goals. Coupa has been a leader in the S2P field for three years, according to most recognized analysts, such as Gartner and Forrester.
Want to have more information? Contact us or visit our webpage about Coupa.
