Using A Source-To-Pay Solution To Streamline Strategy Sourcing
STRATEGY SOURCING
In todays market, executives in the finance department face more pressure than ever to optimize budgets, reduce spending, and maximize efficiency. With the myriad of purchasing initiatives available across dozens of categories, it can be difficult to keep track of the different tools, processes, and strategies in play. This is why Source-to-Pay Solution can be an invaluable asset in streamlining strategy sourcing.
A Source-to-Pay solution commands an organizations end-to-end workflows, from supplier?s application to supplier performance management. This type of solution radically improves visibility into spending and simplifies the process of verifying orders and transactions. It especially improves control of the tendering process and consideration of performance as well as cost of goods.
Source-to-Pay solutions boggle the mind in what they offer. Many solutions have active users of up to million across wide range of companies and sectors. They empower the finance team by combining out-of-the-box solutions with the latest technologies including; artificial intelligence and artificial neural networks, virtual reality and augmented reality, machine learning and cognitive ergonomics.
Despite the obvious benefits, one key question remains how can finance teams make the most of their Source-to-Pay solution? The answer lies in breaking down the implementation process into five steps.
Step 1: Identify Needs
Successfully utilizing Source-to-Pay solution means first having clear identify your organizations needs and objectives. For example, operational needs such as streamlining the purchase ordering process or automating the tender selection process can be identified and addressed. Similarly, strategic needs such as optimizing the tendering process or measuring supplier performance may need to be addressed. Knowing your objectives will allow you to determine the right technology and skills needed to ensure that you have the right solutions in place and are making the most out of your tool.
Step 2: Define Business Processes
Once you have identified your goals, the next step is to define the existing business processes and understand how they are currently being managed. This will involve getting an in-depth, comprehensive view of the current management framework and gathering detailed information on the purchasing process, including who is responsible for what activities, what is required to be completed, and what decisions are needed.
Step 3: Find the Right Technology
Once the existing processes have been defined, the next step is to find the right technology to enable the transformation of the purchasing process. Key considerations for sourcing should include flexibility of parameters, scalability, integration capabilities, user-friendly interface and overall cost. it is important to note that the features should suit the objectives of the organization and not the vendor?s bottom line.
Step 4: Implement the Solution
The implementation of the Source-to-Pay solution should include setting up the system, testing the capabilities, and preparing for data migration. Understanding the system architecture is also important for setting goals, determining ownership of processes, and identifying system-wide roles and responsibilities.
Step 5: Administer the Solution
To ensure the successful adoption of the Source-to-Pay solution, it needs to be regularly reviewed and monitored. This includes mapping processes to ensure they are correctly set and integrated, creating reports that measure key performance indicators, and system of user administration that can be logistically managed.
By following these five steps and the ongoing review, organizations can realize the value of their Source-to-Pay solution and take their strategy sourcing process to the next level. With the right solution and the right processes, along with detailed review, organizations can achieve incredible improvements in process efficiency, cost savings, and overall spend visibility.
