Source-To-Pay Solution: A Comprehensive Guide For Boardroom-Level Decision-Making
CLM PROCUREMENT
As the C-Suite assumes greater control of the financial goings-on in their organization, access to the right data and technology ensures that the right decisions can be made in timely manner. Source-to-Pay (S2P) solution focuses on controlling end-to-end procurement processes and offers reliable purchasing data, analysis and workflow. This guide looks at the basics of an S2P solution and how to use it productively to make confident decisions at the boardroom level.
Purchasing procurements have traditionally been time-consuming and inefficient for organizations. An S2P solution simplifies the process by automating several tasks to ensure the process is streamlined and effective. This type of solution offers the highest control of an organizations procurement and the insight needed to make the most confident boardroom decisions. Its full-cycle capabilities provide an enterprise system that helps organizations to forecast, plan, and better control their purchasing operations.
The main objectives of an S2P solution are to increase accuracy and workflow, save money, reduce labor costs and transaction processing, and offer greater insights. The integration of spend analytics gives organizations greater visibility into their complete value chain, helping them to identify areas where savings and efficiency can be enhanced. Furthermore, S2P solutions can offer fleets of information such as global supplier scorecards and current market trends. As such, boardroom decision-makers are better equipped to make informed decisions that are based on ensuring the greatest value for money.
When implementing an S2P solution, start by evaluating the nature of an organizations purchasing processes and the scope of their technology. Consider the various facets of the solution and whether it covers specific areas like market intelligence, workflow, collections and deductions, as well as reporting and analysis. This type of solution should provide automated processes that connect seamlessly with existing systems and offer number of additional functions, such as automated order management and e-Invoicing.
The first step to using an S2P solution is to understand and acknowledge the existing requirements and then figure out how the current system can be altered to make the most out of it. After comprehensive evaluation of the S2P solution, consider the different customizations and features that are needed by the organization. Also, consider any related features which would increase the capability and scope of the S2P solution in order to optimize its use.
Once all of these elements have been studied and agreed upon, next comes the implementation process. Initial implementation should include an onboarding process to ensure functionalities are understood and the usage of the system is optimal. This includes training in account setup, data migration, creating and editing existing accounts, entry and maintenance of supplier data, and link with organizational systems.
When all steps have been completed, system-wide automated process of purchasing should be in place to run procurement processes such as receiving, vendor selection, budget control, and document audit. Additionally, some S2P solutions provide global supplier scorecards that enable an organization to evaluate the performance of their global supply chain and identify risks or areas to improve.
With the organized procurement process set-up and in place, the real benefits of an S2P solution will start offering compounding return on investment. The organization will be able to track current spend and identify areas where savings are possible. This helps to streamline how money is spent, and assists in extracting every bit of value out of every transaction.
Ultimately, an S2P solution offers tool for increased insight, enabling executives to more comprehensively scrutinize their operational expenditures. This enables executives to plan for the future and develop strategies to ensure future financial stability. With this solution enabling confident boardroom decisions, the organization is ensured secure future and the capacity to grow.
