Due to the lack of visibility into expenditures, hospitality companies are losing out on millions of dollars in potential cost savings. According to Accenture professionals working to improve source-to-pay (S2P) processes at large hospitality companies, only about 30 percent of expenditures are under effective category management. Even in the portion being managed, many of the contracted savings are slipping away due to lack of follow-through on contractual compliance.
Accenture recommends, on average, that hospitality companies set long-term goals to boost the percentage of spend under management from 30 percent to 80 percent.
Greater synergy will result as related functions are linked together in a streamlined S2P superhighway. Systems that integrate procurement with accounts payable, for example, can show the percentage of spend going through contracts and which properties are buying off-contract with greater frequency. In addition, thorough integration of digital data—in sourcing, procurement and payment processes—paves the way for data analytics, which can provide insight into expenditures and deliver faster feedback on compliance.DOWNLOAD THE REPORT [PDF]