Why source-to-pay technology needs to support ‘plan to pay’ for better planning in spend and supply  

31 March 2021:

Given the current business environment, good planning has never been more important, and this certainly includes finance, operations and procurement. We’ll explore the “plan to pay” topic in this post.

Finance should engage the business to translate business planning into financial planning, while operations groups ensure that value chains are operating smoothly — and procurement supports these stakeholders to help them plan with suppliers to help ensure that risk is minimized while value is maximized (and cash preserved).

Unfortunately, planning processes are disconnected across the domains of:

  • Strategic planning and “integrated business planning” (IBP)
  • Financial planning (P&L forecasting, CapEx planning, cost center budgeting, cash forecasting)
  • Program/project planning: project portfolio management, project planning
  • Product/service planning: product portfolio planning, technology roadmapping, product development
  • Supply chain planning that translates broad IBP to sales & operations planning (S&OP), which then drives supply planning for supplier requirements and resources (and also to supply risk mitigation planning to keep supply lines flowing and suppliers healthy)
  • Functional planning, including procurement planning that in turn translates to:
    • Procurement’s own budgeting and planning
    • Savings planning that justifies the investments (i.e., budget) in procurement
    • Spend planning by category, supplier and contract (e.g., upcoming renewals)

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Source: Spend Matters

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