Paperless Procurement: Utilizing A Source-To-Pay Solution
SOURCING IN PROCUREMENT
The intricate and oftentimes convoluted process of procurement within an organization can be more costly and less efficient without the use of modern conversion technology. One of the most successful recent developments in the area of procurement technology is Source-to-Pay solutions, often referred to as S2P. This article will explain the steps necessary for incorporating such process and showcase the benefits of utilizing Source-to-Pay solution.
For executives in the finance department, transitioning to digital based procurement process can be daunting and require significant adjustment in mindset and operations. S2P solutions work by integrating information from multiple disconnected systems, including electronic invoicing, contracts, workflow, and analytics, into single unified platform. By doing so, it isimplifies the ordering process for all parties involved, increases operational efficiency, and reduces the costs associated with procurement.
The first step in the integration of S2P solutions is for organizations to establish the goals that it aims to achieve. This should be done before deciding on the necessary components needed to implement the platform. The goals can be both long and short term, with the primary purpose of utilizing the platform to identify cost savings opportunities, improve decision-making and achieve end-to-end savings on day-to-day operations.
The next step involves researching various S2P vendors and selecting the solution that best matches the established goals. Factors such as user-friendliness and ease of scalability should be considered when weighing options, as well as added features such as pre-defined workflows, analytics, and automation capabilities. Additionally, executives should look at the track record of each provider to gain insight into the level of customer service and quality.
Once the best option is identified, organizations should start the integration process by forming task force that consists of stakeholders from different departments. The task force should document the requirements for the new system and use that basis to evaluate existing vendor solutions. Based on the evaluation results, the task force can then recommend the appropriate vendor and system integration plans.
The next step is to implement the chosen S2P system and evaluate its success from the data available. It is important to assess the system in order to address any problems identified during the process. Evaluations should include the results of the implementation, improved processes, and the impact on productivity.
Finally, it is important to keep the S2P system up to date by continually evaluating best practices and introducing recurring updates in order to maintain the optimal efficiency of the system. Doing so will ensure that the solution is being used optimally and can also lead to additional cost savings opportunities.
Source-to-Pay solutions are growing rapidly in popularity due to their ease of use, scalability, and the amount of money they can save organizations in the long-run. For executives in the finance department, implementing such process may appear daunting, but with careful research and proper methodology, it can be accomplished quickly and efficiently.
