Closing the Gap: How Source-to-Pay Technology Helps CFOs Maximise Managed Spend

The Challenge Every CFO Faces

Every finance leader wants the same thing: to manage 100% of addressable spend without adding headcount or blowing up budgets. But procurement teams often hit a wall. They are asked to do more- cover more spend, source more suppliers, and support more categories—while resources stay flat.

The reality is that manual processes and fragmented systems make this almost impossible. Sourcing takes too long. Supplier vetting is inconsistent. Procure-to-pay cycles are bogged down by discrete systems, paperwork and approvals. These inefficiencies cost money, create compliance risks, and frustrate stakeholders.

Why Efficiency Matters More Than Ever

Procurement is no longer just about buying. It is about creating value. But without efficiency, even the best strategies fail to scale. Here is what is at stake:

• Managed vs. Addressable Spend: Most organisations manage only 50 to 60 percent of their spend. Every unmanaged pound is a missed opportunity for savings and compliance.
• Resource Constraints: Team sizes rarely grow in proportion to spend. Doing more with less is not optional—it is survival.
• Dynamic Business Needs: New categories, new suppliers, and new compliance requirements demand agility. New category demand new skills to source, negotiate and manage spend.

The Technology Advantage

This is where Source-to-Pay (S2P) technology comes in. It is not just software- it is a strategic enabler that unifies sourcing, supplier management, and procure-to-pay into one seamless process. Here is what it delivers:

1. Faster Sourcing Guided workflows, e-auctions, and AI-driven supplier discovery cut sourcing cycle times by up to 50 %.
2. Professional Supplier Scrutiny Automated onboarding, compliance checks, and risk scoring ensure every supplier meets your standards without manual chasing.
3. Efficient contract management Collaborative supplier contract drafting, integrated approval and e-signature cycle reduce cycle time by up to 60% and help improving spend under contracts.
4. Cost-Effective Procure-to-Pay Touchless invoicing and automated matching reduce AP costs from £10 or more per invoice to under £3, while shrinking cycle times from 12-14 days to 2-3 days to keep your suppliers happy.

The CFO’s Business Case

Investing in S2P is not just a procurement upgrade—it is a financial strategy. Here is why:

• Expand Managed Spend Without Adding Headcount
  Digital leaders manage 80 to 85 percent of spend compared to 55 percent for peers with 31% fewer FTEs per spend volume.
• Unlock Hard Savings
  Every additional 20 percent of managed spend can deliver 1 to 2 percent in negotiated savings— millions on a £2 billion spend base.
• Reduce Operational Costs
  AP automation alone can save £2.8 million annually for a mid-sized enterprise.
• Strengthen Compliance and Risk Control
  Centralised supplier data and audit trails reduce fraud and regulatory exposure.

Real-World Results

Independent studies show that Source to Pay technology investment brings:

• 200 to 390 percent ROI over three years
• Payback in six to ten months
• Cycle time reductions of 24 to 58 percent
• Functional cost down by 19 percent

Case Studies

• A global manufacturer increased managed spend from 60 percent to 82 percent, saving £6 million in year one.
• A retail enterprise cut AP cost per invoice by 70 percent, freeing £2.5 million annually.
• A financial services firm retired six legacy tools, saving £900,000 in IT costs.

Next Steps

To make this real, start with:

• Baseline Analysis: Current managed spend, AP cost, and cycle times.
• ROI Modelling: Quantify benefits using your numbers.
• Phased Roadmap: Quick wins in sourcing and AP automation, then scale to full S2P.

Bottom Line
In a flat-budget world, efficiency is not optional- it is the only way to close the managed-spend gap. Source-to-Pay technology delivers that efficiency, turning procurement into a strategic lever for margin improvement and risk control.

Talk to us to know more contact@valueweaver.com