An Introduction To Source-To-Pay Solutions
E-Procurement Applications
Going digital with e-Procurement is necessity for business today and is quickly becoming commonplace. There are growing number of Softwaresolutions that can improve the purchasing and payment lifecycle to reduce costs, simplify processes, and increase visibility and control. Source-to-Pay (S2P) solutions offer comprehensive suite of features across e-procurement and payment that improve visibility, enable collaboration, deliver efficiency, and maximize spend optimization. By leveraging an S2P suite, organizations can confidently source, procure and manage their entire range of requirements, while benefiting from system-wide automation and intelligence.
This guide provide C-level executives an insight into source-to-pay solutions, the benefits they can bring, and how these solutions can be deployed, to get their organization on the right track to successful e-procurement.
Step 1: Identify Needs
The first step to finding the right source-to-pay solution is to understand your organizations particular needs from the suite. Start by creating ?requirements checklist? that logs the essential features you need for e-procurement.
Items on this checklist would include templates for configuring requisitions, invoices and PO processes, ways to set up automated workflows, modules for purchase approvals and B2B connectivity, and options for secure payment and tracking. Additionally, consider the size of your organization, any existing infrastructure, the required scalability and capacity, and any integrations with existing software packages. Whether or not you need S2P mobility or analytics capabilities should also be factored in.
Step 2: Do Your Research
Once you have noted down your organizations requirements, it is time to hit the streets and do your research. The most comprehensive source-to-pay solutions often have wide range of features, but they?re not all the same. Have look at the features and functionalities of each and consider how they might meet your specific needs.
In addition to the features of the software itself, also pay attention to the reported experiences with implementation and support. Read customer reviews and reviews on G2 Crowd, Capterra or other third-party sit is for independently verified insights. If possible, speak directly with customers to get an honest evaluation of the provider and software.
Step 3: Draft Proposal
Once you have reviewed few potential solutions, draft proposal in collaboration with the other stakeholders in the procurement department. Utilize the information gathered in step to create list of provider?s and grid of preferred measures and associated scores for each one.
it is important to thoroughly assess the software and provider. Consider the ease of use of the interface, and how well the product integrates to existing systems and processes. Think ahead; will the software be scalable as the business continues to grow, and what would that look like? Are there features and advantages in the given system that will open up growth opportunities?
Before signing any contracts, make sure that the terms and conditions of the contract are established. Be alert to any items in the section regarding future updates and charges of these. Also, make sure that your requirements checklist was thoroughly assessed, and not just the generic features.
Step 4: Finalize Objections
After completing the first three steps of the process, it is time to finalize any objections. Objections should be addressed and clarified in order to properly assess the strengths and weaknesses of how the solution will fit into your existing processes and infrastructure. Evaluate how you would handle the customerservice and training of personnel, and also look into how you will maintain the software up-to-date as new versions are released.
Step 5: Execute and Implement
In the final step of the process, you should be comfortable with the provider, solution and associated costs, then you can move forward to executing the contract and implementing the solution. At this point, you will be working with the vendor to coordinate the planning and execution phases, which is collaborative effort.
During the implementation of the source-to-pay system, be sure to pay special attention to the integration phase. All data should be transferred quickly and securely, while also leaving room for further application changes depending on the current state of the organization.
Step 6: Utilize the Solution
Once the source-to-pay solution is implemented, it is time to utilize the features that make it the optimal choice for your organization. Take the time to learn the process flows, setup the right dashboards, and customize the system to fit the specific needs of each user. S2P solutions often offer range of modules for sourcing, purchasing, finance, inventory and many other process activities.
The advantages of source-to-pay system can be realized in shorter timeframe when employeeare adequately trained and supported. As the system is being used, do not forget to regularly review your notes from the research phase to ensure that the system is meeting expectations. Keep in mind that the system is always evolving and new features are consistently introduced.
Conclusion
For businesseseeking source-to-pay solution, there should be no rush. Taking the time to properly assess the companies individual needs, research the best fit for an S2P solution, and evaluate the associated benefits are all key elements of the decision-making process. Locating solution that is scalable, compliant and reliable, plus offers the level of integration and security needed for the best outcomes is essential.
Source-to-pay solutions offer an efficient and comprehensive suite of purchasing and payment capabilities across the end-to-end procurement lifecycle, from requisition to invoice, to ensure that companies can get the most out of their investment. This guide provides C-level executives comprehensive understanding of the S2P process and checklist for locating the right solution to meet their specific requirements.
