Unlocking The Benefits Of A Source-To-Pay Solution
INVOICES CHAIN
Adopting source-to-pay (S2P) system has become critical component of the day-to-day operations and long-term strategy of many successful organizations. By enabling greater visibility into spending, streamlining manual processes, and delivering more timely and accurate payments, S2P solutions have helped organizations around the world reduce risk, optimize cost savings, and improve control and compliance.
For an executive in the finance department who is seeking to find the right S2P system, it can be daunting to sift through the various alternatives and determine which solution is best for the organization. This step-by-step guide is designed to help the executive to understand the key features, consider important implementation factors, and evaluate the available S2P solutions.
Step 1: Identify Key Functional Requirements
The first step in selecting the best S2P system is to identify all of the functional requirements that are needed, including invoicing features, reporting capabilities, integration with existing systems, scalability, automation, capture, and payment. The C-suite executive should review existing tools and processes and consider overall spend visibility, policies, and procedures. Consider what should be automated across the procure-to-pay process and which components should remain manual.
Step 2: Connect with the Procurement and Accounts Payable Teams
Getting buy-in from the procurement and accounts payables (AP) teams is essential; they will be an important part of the S2P system’s eventual success. The executive should connect with these teams to ensure that everyone clearly understands the expectations and goals of the new system.
Step 3: Gather External Feedback
Before making decision, it is important to understand how other organizations have successfully implemented S2P solutions. Speak with colleagues, former bosses, and industry peers to gain insights into their experiences, learn best practices, and find out which systems worked well and why.
Step 4: Narrow Down your Choices
Once the organizational needs have been identified and the external feedback has been gathered, the executive can start to narrow down the list of possible solutions. For example, consider which vendors offer the necessary features and the scalability required, evaluate each solution’s integration options, understand what types of implementation support is available, and read testimonials from other customers.
Step 5: Request Demonstration
A vendor should be willing to offer demonstration of their system, ideally in live environment. This can help the executive to understand how the S2P solution works and test its capabilities on actual data. The executive should request detailed demo and use this opportunity to ask questions, determine whether the system is right for the organization, and ensure that there will be no problems with the transition.
Step 6: Analyze the Cost-Benefit Relationship
When evaluating an S2P system, the executive needs to make sure that the benefits of the system are balanced against cost. Calculate the time and money that will be saved, weigh up the cost of the system’s implementation and training, and consider how the system will help the organization to meet its overall strategic goals.
Conclusion
When it comes to selecting source-to-pay solution, it is important for the executive to understand the organizations needs, assess the available S2P systems, and evaluate the cost-benefit relationship. By following the above steps, the executive should be able to identify the most suitable solution for the organization. This can help to ensure that the S2P system is properly implemented, maximizes cost savings, and delivers long-term value for the organization.
