Aligning Finance and Procurement – Phase 4: Leveraging technology to bridge the Finance–Procurement gap

Finance and procurement play critical roles in shaping an organization’s financial health and operational efficiency. This series shapes a five-phase approach to aligning finance and procurement.

Using technology to bridge the Finance-Procurement gap

Once a well-defined technology adoption strategy is established in the ‘collaboration’ phase, organizations can move to the next step: leveraging technology to bridge the finance-procurement gap.

Technology is a powerful enabler of finance-procurement collaboration, bridging gaps in spend visibility, cost control and data integration. Without the right tools, procurement’s contributions to financial strategy can remain disconnected from budgeting, forecasting and risk management.

By leveraging automation, AI-driven analytics and integrated source-to-pay (S2P) solutions, organizations can streamline workflows, improve financial accuracy and enhance procurement’s role in decision making. The following sections explore how technology enables better finance-procurement integration, the key considerations for selecting the right solutions and how digital transformation drives efficiency, compliance and long-term financial impact.

The importance of integrating procurement and finance systems

A major challenge for organizations is siloed procurement and financial systems which separately manage critical processes, such as spend tracking, budget planning and supplier risk assessment. Without integration, finance teams struggle to track procurement-driven savings, while procurement lacks visibility into financial planning and liquidity management.

To resolve this, companies need to do the following:

1. Ensure procurement data is linked to financial dashboards

• Procurement spend data must be available in real-time for financial forecasting and budget adjustments.
• Supplier contract values and payment terms must be integrated into working capital planning to prevent cash flow disruptions.

2. Improve spend visibility and cost tracking

• Procurement teams should standardize cost-saving tracking methodologies to contribute validated savings to financial reporting accuracy.
• Organizations must eliminate disconnected data systems so that financial statements automatically reflect procurement-driven savings.

3. Enhance compliance and spend governance

• Automated compliance tracking keeps procurement spend policies aligned with financial risk controls.
• Audit-ready procurement records help finance and procurement teams maintain strong financial controls and regulatory compliance.

By fully integrating procurement and finance systems, organizations gain real-time cost visibility, better budget forecasting and improved decision-making capabilities.

How automation and AI enhance Procurement-Finance collaboration

Automation and AI-driven technologies can help procurement and finance operations teams eliminate manual inefficiencies, reduce errors and improve decision making.

1. Automated spend management

• AI-powered spend analytics automatically reconcile procurement cost data with financial reports, reducing the risk of mismatched data and inaccurate financial forecasting.
• Automated invoice processing and payment matching shortens processing cycle times and ensures on-time payments and optimized cash flow management.
• Real-time tracking of actual spend vs. budgeted costs allows finance teams to adjust forecasts based on procurement-driven cost variations.

2. Predictive analytics for cost control

• AI-driven cost modeling helps procurement teams anticipate supplier price fluctuations and optimize sourcing strategies accordingly.
• Finance can use predictive insights to adjust financial reserves and liquidity planning based on expected procurement expenditures.

3. AI-driven risk mitigation

• Supplier risk assessment tools use AI to analyze historical supplier performance, compliance violations and financial health as a form of proactive risk management.
• Procurement and finance teams can automate third-party risk monitoring to lessen their exposure to disruptions and regulatory penalties.

By automating manual processes, reducing time spent on reconciliations and improving data quality, AI-driven S2P solutions enable greater collaboration and financial control.

Key considerations when selecting S2P solutions

Not all S2P solutions are built the same. To achieve seamless finance-procurement integration, organizations must evaluate which features best align with their operational needs and financial goals.

1. Full integration with financial systems

One of the most critical factors in selecting an S2P platform is its ability to integrate with enterprise financial management and FP&A systems. Organizations must ensure that:

• Procurement data flows directly into financial forecasting tools to eliminate the need for manual data transfers.
• Supplier payment terms, invoice processing and contract compliance metrics are automatically updated within finance systems.
• Budgeting and forecasting tools receive real-time procurement insights for financial accuracy.

2. Supplier management and risk assessment capabilities

S2P solutions should offer supplier evaluation features that help procurement and finance teams mitigate risk. An ideal platform should:

• Provide supplier financial health tracking so finance has real-time insights into supplier stability and creditworthiness.
• Automate supplier performance tracking to measure on-time delivery, contract adherence and cost compliance.
• Support Environmental, Social and Governance (ESG) reporting to align procurement with corporate sustainability goals.

3. AI-enabled cost and spend analytics

Advanced analytics help procurement and finance teams make data-driven decisions by:

• Identifying cost-saving opportunities through category-based spend analysis.
• Tracking realized vs. projected savings to validate procurement-led financial impact.
• Enhancing spend forecasting accuracy to give finance full visibility into procurement-driven cost factors.

4. Workflow automation and P2P optimization

An S2P platform must streamline and automate workflows between procurement and finance, including:

• Automated invoice processing so finance can validate and approve supplier payments efficiently.
• Contract lifecycle management to track contract compliance and financial obligations.
• Procure-to-pay integration to give finance real-time visibility into supplier spend and invoice approvals.

Selecting an S2P platform that meets these criteria ensures that finance and procurement operate as a single, data-driven function and not as disconnected teams with misaligned processes.

Spend Matters TechMatch solution supports users with their tech selection journey. 

Insider members gain access to deep solution insights.

Key insight

Technology is the bridge between finance and procurement that provides cost visibility, risk control and budget accuracy. The right S2P solution plays a crucial role in aligning procurement with financial strategy by seamlessly integrating ERP, treasury and financial planning systems while supporting compliance, scalability and stakeholder adoption.

By strategically selecting an S2P platform that meets both procurement and financial requirements, organizations enhance governance, streamline workflows and enable real-time decision making. A well-aligned solution ensures that CFOs and CPOs operate as a unified, data-driven function, driving financial stability and long-term enterprise value.

Solution providers to consider

Solution Provider	What it does
Airbase	All-in-one spend management platform with AP automation, expense management, corporate cards and guided procurement. Strong support for V- and P-cards and global, multi-currency travel booking.
AvidXchange	Focuses on AP automation, payment processing and invoice acceleration for North America with a large network of 680,000 suppliers.
Basware	Comprehensive P2P solution with a robust B2B commerce network and advanced e-invoicing capabilities.
BILL	AP automation solution for small and midsize companies, including ACH and international payments, approval workflows and ERP integrations.
Billhop	Enables card payments for suppliers that do not accept cards, acting as an intermediary.
BirchStreet Systems	Cloud-based P2P automation platform tailored for the hospitality industry. Manages both direct materials (food and beverage) and indirect materials spend.
Brex	Started as a corporate card offering and evolved into a spend platform supporting T&E, group events, procurement (vendor cards and bill pay) and employee benefits (stipends and perks).
C2FO	Provides an on-demand working capital platform enabling businesses to accelerate invoice payments at self-selected discount rates, facilitating faster access to cash flow without loans or extensive paperwork.
Calculum	Provides AI-enabled payment terms analytics and negotiation to help businesses save money. Offers a unique solution for companies seeking to optimize payment terms.
Candex	Streamlines tail spend P2P processes with AP automation, payment processing and outsourcing for services.
Claritum	Cloud-based P2P solution with tactical sourcing capabilities. Features a catalog-based platform with integrated RFx for category-specific, tail-spend activities.
Compleat Software	P2P solution automating purchase requisitions, order placement and invoice processing. Provides real-time spend analytics using extracted invoice data.
Corcentric Platform	Comprehensive S2P/P2P solution integrating supplier management, sourcing, CLM, procurement, invoice and financial management, payments and analytics. Built through acquisitions (e.g., Source One, Netsend, Determine and Vendorin). Offers advisory and managed services.
Coupa	Expansive S2P/P2P offering with core modules (S2P, S2C, P2P, AP automation) and adjacent modules like supply chain design, treasury management and payments. Leverages community-based intelligence for insights.
ebidtopay	European family-owned suite serving the mid-market. Offers S2C, P2P, supplier relationship management and supply chain management with a focus on strategy and innovation.
EffiGO	India-based S2P/P2P platform with strategic sourcing, P2P processes and a supplier portal for surplus stock processing.
Emburse	Provides spend optimization, expense management and AP automation with solutions for invoice processing, payments, T&E management, audits and insights. Tailored for different business sizes and geographies.
Esker	Covers the full P2P and O2C cycle with solutions for purchase requisitions, AP automation, supplier communication and analytics.
Fraxion	Spend management platform offering expense management, focusing on quick deployment, low cost and fast ROI. Includes core support for expense report creation and reconciliation.
Fyle	Real-time expense management solution leveraging AI. Connects to existing cards across major networks, avoiding reliance on issuing banks and enhancing data access.
GEP	Offers GEP SMART (S2P suite), GEP NEXXE (SCM) and GEP Green (sustainability). Powered by GEP Quantum, which uses AI and low-code tools for automation and insights.
Glean AI	AP automation solution for SMEs, focusing on spend visibility and identifying savings opportunities.
Goby	Cloud-based AP automation solution for mid-market companies, specializing in automated invoice and utility bill processing.
ISPnext	S2P solution with modules for supplier management, sourcing, contract management, procurement, AP automation and spend analysis. Focuses on mid-sized organizations in Benelux.
Ivalua	Global S2P solution with coverage in over 75 countries. Offers direct materials management and supplemental modules like inventory management.
Jaggaer	Comprehensive S2P/P2P solution with supply chain collaboration and payment capabilities under the Jaggaer ONE platform.
Kissflow	Offers modules for strategic sourcing, P2P, supplier management, contract management, inventory management, invoice automation, spend analytics and integrations. Serves SMEs.
LSQ	Offers working capital management solutions with efficient payments, flexible financing and tools to optimize cash flow. Helps businesses streamline payments, access early funds and improve DPO/DSO metrics.
Medius	Modular S2P suite for the European mid-market, with a focus on indirect spend, e-procurement and AP automation, while also supporting upstream processes.
MeRLIN	S2P suite for mid-market companies in the manufacturing and public sectors. Supports both direct and indirect spend.
Oalia	Full-suite S2P provider specializing in intellectual services. P2P is complementary to its S2C offering.
OneMarket	Covers P2P, analytics, sourcing and contracts, with additional project management capabilities.
Onventis	European mid-market S2P provider, covering the entire S2P process with capabilities like spend analytics, CLM and third-party risk data integration.
OpusCapita	P2P solution with e-procurement, invoice automation, product information management, e-invoicing and B2B integration. Now part of GEP’s portfolio.
Oracle	Offers a Procurement Cloud covering the S2P process, alongside ERP and solutions for supply chain, manufacturing and human capital management.
Order.co	P2P solution combating maverick spend by consolidating invoices and incorporating external marketplace content. Serves procurement and AP teams.
PLANERGY	P2P solution with modules for requesting, purchasing, AP automation and spend analytics, aimed at SMEs and lower mid-market companies.
Proactis	S2P suite with a marketplace/supplier network. Includes buy-side capabilities and a supplier-focused offering for capturing business opportunities.
ProcurePort	Strategic sourcing solution with RFx and auction management, complemented by a P2P platform.
Promena	S2P/P2P suite for smaller and mid-sized businesses, covering supplier management, sourcing, contracting and e-procurement.
Raindrop	Comprehensive S2P/P2P platform covering spend management, sourcing, contract management and payables management.
SAP Ariba	Comprehensive S2P lifecycle coverage. Integrates with other SAP products for enhanced functionality.
SoftCo	P2P solution for SMEs/MM in Europe, featuring advanced invoice capture, workflow and business rule engine integration.
SynerTrade	Supplier management, P2P and S2C solutions offering a comprehensive e-procurement suite.
Taulia	Working capital optimization solutions, focusing on cash flow and supply chain efficiency via an AI-powered platform.
Teampay	Middle-market P2P solution integrating with Slack and Microsoft Teams for streamlined spending control.
Tipalti	Integrated finance automation solution targeting the mid-market in the US and UK. Offers a global payments hub, invoice and supplier management and Tipalti Expenses for streamlined expense management and reimbursement.
Tradeshift	Business network focusing on marketplace, e-invoicing, V-card and SCF programs, enhancing supplier connectivity.
Tungsten	Supplier network offering e-invoicing and supply chain financing with a focus on global regulatory compliance.
Vroozi	Cloud-based P2P solution evolving from e-procurement. Includes invoicing, payments, supplier portal and RFQ capabilities.
Yooz	Specializes in AP automation with capabilities in e-invoicing, competing across P2P and AP automation ecosystems.
Zapro AI	Covers the S2P cycle with additional solutions for vendor management and inventory management.
Zip	Streamlines procurement with automatic PO creation, AI-powered invoice processing and dynamic approval workflows. Features include ERP integration, contract repository and AI assistant.
Zycus	S2P/P2P provider with P2P and S2C platforms, along with intake, risk and ESG management applications.

Look out next week for: Phase 5: Sustaining alignment success with shared KPIs.

Visit our  ‘Aligning Finance and Procurement’ in-depth guide for practical, structured advice on enhancing finance-procurement alignment.

Read also our use case scenario ‘Aligning Finance and Procurement for cash flow and liguidity.’
Phase 1 – Understanding the Foundations is here.