As the leader in the hospitality industry for cloud based procure-to-pay (P2P) solutions, BirchStreet sees firsthand the progression and trend of hotels and casinos making the switch to SaaS procurement solutions. Procure-to-pay solutions encompass the many factors of back-office business improvement processes, including the automation of eProcurement, AP 3-Way Auto-Matching, Inventory, Recipe Management, Capital Budgets and Reporting. Integrating all of these components drastically improve business process and reduce costs.
According to PayStream Advisors’ 2014 eProcurement Report, 74% of businesses are mostly automated or have some automation in their procurement processes. In speaking with our prospects and customers, many hotels and casinos both big and small, are realizing the tremendous upside of upgrading their technology. The biggest factor we see is the elimination of costs by replacing a company’s legacy system with a SaaS solution.
On-premise legacy systems require a team of IT resources and, of course, their salaries that range from $38,000 to $85,000 per year according to salary.com. Cloud solutions typically have a low annual maintenance fee and a one-time implementation fee. In comparison, legacy systems require companies to pay not only salaries, but hardware maintenance and support fees, annual software maintenance fees and license fees. In addition, almost as soon as a legacy system is installed, the technology is outdated. Cloud solutions are continuously updated and don’t require new versions or releases. Updates to a SaaS environment are made in the cloud and don’t require any IT labor to desktops or workstations.
BirchStreet’s customers usually realize their ROI within 3 to 9 months based on the gap between their current state and their desired state. With automation of the procure-to-pay process, business easily increase their efficiency, control, compliance, accuracy and visibility. This process translates into operational savings to increase profits.