Utilizing A Source-To-Pay Solution For Finance Supplier Engagement Management
FINANCE SUPPLIER ENGAGEMENT MANAGEMENT
The practice of supplier engagement management, which covers everything from developing spend data analytics program to managing supplier relationships, is quickly becoming critical aspect of the finance industry. For C-Suite executives, understanding and implementing source-to-pay solution is essential in order to strategically manage the companies finances.
At high level, source-to-pay solution encompasses the processes and technologies in place to most efficiently procure goods and services. While there are variety of solutions available, most source-to-pay solutions revolve around software, including e-procurement, e-invoicing, accounts payable software, purchase order systems, and procurement analytics software.
Implementing source-to-pay solution involves several different steps. From setting up an effective process to selecting the right software, and onto ongoing training and user support, the exact action items may vary depending on the specific organization and its procurement needs. The following is step-by-step guide for executives attempting to use source-to-pay solution for finance supplier engagement management.
Step 1: Define Requirements
The first step towards successful source-to-pay solution is to clearly define the organizations requirements for both the software and the process. At this stage, execs should identify what types of software are needed, taking into account the size of the organization and the budget available for the solution. Additionally, stakeholders should determine what type of process needs to be put in place, including setting up proper account management protocols, vendor selection criteria, and purchase authorization procedures.
Step 2: Set Up Process
Once the right organizational requirements have been determined, executives can begin to formulate and document process. This process should provide detail on how each step of the source-to-pay solution should work, such as detailed workflow outlining how to set up user account and make purchase, to risk management procedure dictating how to properly verify vendors.
Step 3: Acquire Software Solution
Once the process is documented and approved, the next step is to acquire the right software solution. Executives should look for software that provides comprehensive approach for their source-to-pay needs, such as e-procurement, e-invoicing, accounts payable, purchase order, or analytics software. Additionally, execs should consider how the software can integrate with the current IT infrastructure of the organization and support the newly defined process.
Step 4: Set Up the Software
Once the source-to-pay solution software has been selected and acquired, the next step is to set up the software. IT professionals should work in tandem with the executive team to coordinate the installation of the software and establish user accounts.
Step 5: Train End-Users
Once the software is in place, the next step is to ensure that the stakeholders who will actually be using the source-to-pay solution are adequately trained. This typically includes setting up comprehensive user manual and onboarding process, and providing additional support as needed.
Step 6: Monitor Usage
The final phase in setting up source-to-pay solution is to ensure that the system is running efficiently and to address any potential issues as they arise. This step involves monitoring the usage of the solution and evaluating the results, such as improved efficiency, better supplier management, and better accurate data.
Conclusion
Finance supplier engagement management requires executives to have deep understanding of not only the process but also the technology involved. Having the right source-to-pay solution is the foundation for properly managing supplier relationships, collecting spend data and analysis, and streamlining procurements. By following the six steps outlined above, executives can more easily understand and implement the right source-to-pay solution that meets their organizational needs and allows them to take control of the organizations finances.
