Partnering With A Source-To-Pay Solution To Streamline Spend Management
SPEND MANAGEMENT SOLUTION
Modernizing an organizations spend management strategy through Source-to-Pay (S2P) solution not only can save time and money, but it can also drive heightened level of visibility and control with contract negotiations, vendor risk management, and the implementation of governance. With that in mind, the following is step-by-step guide for effectively deploying S2P solution for spend management.
1. Understand current spend management needs.
Before investing in S2P solution, it is important to accurately identify the needs of the organization with regards to spend management. Conduct thorough audit of current processes and policies and consider both historical and projected performance. Key areas to investigate include existing supplier partnerships, workflow efficiencies, and any areas of risk associated with the management of current expenses. Leverage the expertise of business owners, stakeholders, and department heads to compile an accurate picture of where the organizationstands and where it wishes to go.
2. Research S2P solutions.
Once current needs have been established, seek out the best S2P solution to fit those needs. Research is required to locate reputable provider and thoroughly consider their software capabilities, features, and overall value. Start by investing time in vendor comparison and assessment, network with other businesses and organizations that are using S2P solutions, and inquire about their experiences. Gain comprehensive understanding of the terms, timelines, and costs associated with each provider
3. Develop spend management strategy.
To successfully employ the new S2P solution, the organization must develop comprehensive spend management strategy. Utilize this step to ensure that all stakeholders are informed by outlining vendor expectations, organizational responsibilities, and strategic plans. The executives should be the driving force to ensure that comprehensive request for proposal (RFP) is generated that the specific features the organization needs.
4. Implement and monitor the S2P solution.
After selecting the S2P provider and establishing the spend management strategy, the organization is ready to launch its new solution. It is important to ensure that all stakeholders are properly trained and implement continual monitoring process to gauge the efficacy of the solution. This provides the organization with the ability to make necessary tweaks or upgrades as needed to achieve desired spend management objectives.
5. Refresh and evolve.
The needs of the organization are likely to evolve over time, and with that comes the need to review the S2P solution and make changes accordingly. Utilize this step to review software capabilities, strategy, performance, and existing supplier partnerships to make sure that the solution is still fit. This is continual process and the goal is to make sure that the S2P solution continues to provide an advantage to the organization in line with its set of goals.
Final Thoughts
Spend management is critical component in the ongoing success of any organization, and the implementation of S2P solution can help streamlined the process. This step-by-step guide provides solid base for the deployment of S2P solution and the assurance that the solution is both supported and monitored. Ultimately, the organizationshould leverage the power and capabilities of the S2P solution to achieve higher level of efficiency and transparency within their spend management strategy.
