How To Leverage Managed Services To Improve Source To Pay Cycle
Source To Pay Cycle
As busy Executive working in the finance department of company, it is likely that you are looking for ways to optimize the source to pay cycle. Managed services may offer valuable solution. In this article, we will go over the basics of working with managed services to streamline source to pay cycle operations.
First, let’s define what source to pay (S2P) cycle is– it is the sequence of procurement-related activities that leads from purchase request initiation all the way to payment release. It covers areas such as supplier onboarding, contract negotiations, purchase order creation, order receipt and invoice processing. The S2P process provides visibility and control throughout the purchasing life cycle, allowing business to proactively identify, mitigate, and resolve supplier issues quickly.
For organizations looking to reduce S2P cycle time, leveraging managed services can be cost-effective way to do so. Managed services are technology-driven solutions that support organizations in improving the efficiency of their S2P process. These services can range from robotics process automation (RPA) to it isystem integration and software as service (SaaS) platforms. With managed services, companies can achieve greater cost savings and improved performance in their S2P process.
To get started with managed services for business2P cycle optimization, the following steps can be taken:
1. Understand Business Requirements: As first step to improving your businesses2P cycle, it is important to have an understanding of its size and complexity, budget and timeline. Identifying these parameters upfront will help guide the implementation of managed services.
2. Research Solution Providers: After understanding your organizations needs, it is time to find suitable solution providers. Make sure to look for providers who have experience in managing S2P cycles and can provide quality solution with low cost. Reach out to multiple companies and compare services and pricing.
3. Establish Process: After selecting provider, clear timeline should be drawn up outlining the implementation process. Work closely with the managed services provider to develop an efficient process which aligns with your company requirements.
4. Monitor Performance: Once the managed services solution is up and running, it is important to monitor and review its performance regularly. Track key performance indicators (KPIs) to ensure optimal cost and efficiency in the S2P process.
Working with managed services can be great way to improve the efficiency of your companies source-to-pay cycle. By following the steps outlined above, you will be able to quickly and cost-effectively implement managed services and get the most out of your S2P process.
