How To Leverage The Benefits Of A Source-To-Pay Solution
Supplier Management Procedure
For executive leaders in the finance department, the strategic application of Source-to-Pay (S2P) solution presents range of advantages in terms of cost efficiency, quality, risk and supplier relationships. With the right platform, companies can substitute an inefficient manual process with streamlined, automated S2P experience that transcends four critical phases in the supplier management cycle: supplier onboarding, compliance, contract management, and payment.
Supplier Onboarding
The first phase of the supplier management journey involves supplier onboarding. Establishing digital framework for onboarding, identification and qualification helps to classify suppliers according to specific criteria, such as revenue and risk, and improve the organizations efficiency. S2P technology eliminates the time-consuming and error-prone process of manual supplier management, and streamlines the workflows of both suppliers and buyers.
Compliance
For compliance requirements to be met, organizations must be consistent in adhering to the policies of vendors and end customers, including preferential tax regulations. Compliance in S2P solution manifests in several ways, including supplier profile management and self-service portals. S2P Softwaresimplifies the process of verifying supplier and customer completion of appropriate consent forms, compliance declarations and certifications with all the necessary paperwork stored and updated in one place.
Contract Management
Open and clear lines of communication between the customer and supplier liaisons are essential for successful contract management. The goal is to maximize the value for both parties by negotiating terms and conditions that are favourable to both supplier and customer. S2P technology allows all contractual processes to be tracked in one place, beginning with contract creation and continuing through signing, expiration and renewal.
Payment
Ensuring that supplier is properly paid requires highly accurate and comprehensive payment processes. An S2P solution eliminates variety of potential payment errors, including duplicate payments, late payments and failure to pay the correct amount. it istreamlines the payment process, allowing the customer to manage multiple payment methods, currency types and remittance formats all in one place.
In todays digital landscape, an S2P solution provides number of advantages that, when leveraged correctly, can yield tangible, long-term results for any organization. Such platform helps to improve supplier relationships, cost management, compliance, and payment cycles. To gain the full value from the technology, organizations need to ensure that the S2P solution is tailored to their specific requirements. Ultimately, there must be strategy in place to ensure the trust and satisfaction of vendors, customers and stakeholders alike.
