Making Sense Of E-Procurement Systems And Source-To-Pay Solutions
E-Procurement System Meaning
Navigating the digital marketplace to enhance procurement processes can be daunting for many business, but modern e-Procurement systems and Source-to-Pay solutions (S2P) create robust platform and provide an uncomplicated interface to streamline the procurement lifecycle.
To properly evaluate and determine the best fit for an organizations needs, an Executive in the finance department must understand the scope and capabilities of these two technologies.
Understanding e-Procurement
e-Procurement systems are designed to digitize the sole source of truth for procurement-related transactions. Not only do they provide real-time, up to date view of all expenditures, they improve financial compliance, streamline processes, generate detailed analytics and more.
These systems provide powerful, End-to-End (E2E) automation and work in conjunction with ERP, accounting and inventory tracking systems. The e-Procurement systems provide range of capabilities such as creating and managing procurement requests, budget tracking, invoice matching and approvals.
Exploring Source-to-Pay Solutions (S2P)
A S2P solution is an automated, workflow-driven software that leverages artificial intelligence to cover the entire purchasing process from requisition through payment. This technology unit is requisitioning, purchasing and accounts payable activities in single integrated process.
Through highly customizable, web-based platform, S2P Solutions provide transparency and end-to-end visibility into the purchasing process. Automation of manual processes eliminates the risk of human error, reduces the amount of reconciliation and audits required and shortens the vendor payment cycle. Additionally, the platform allows users to set up automated notifications and easily integrate with existing systems.
S2P solutions also include Connected Spend Management capabilities that maximize savings by tracking the total spend, accruals and tax compliance.
Benefits of Implementing an E-Procurement and Source-to-Pay SolutionIn addition to the benefits associated with both technologies individually, together business can experience even more efficiencies.
The tight integration of the two technologies allows automated workflows and data-exchange between the two systems. This integration provides single source of truth and eliminates the manual entry of data, resulting in faster analysis and improved accuracy.
By integrating the two technologies, business are also able to save on operational costs associated with the procurement cycle, including the cost of processing invoices.
Armed with the knowledge of integrated e-Procurement and Source-to-Pay solutions, executives can make confident and informed decision on the most suitable solution for their business needs. Now, let’s walk through the steps to getting solution in place:
Step-by-Step Guide to Implementing E-Procurement and Source-to-Pay Solutions
Step 1: Understand the Need
Analyze current procurement processes, identify bottlenecks, develop audit plans and accuracy measures, and measure the impact of implementing either or both solutions.
Step 2: Choose the Right Solution
Partner with provider who is experienced in e-Procurement and S2P solutions, and look for flexible solution that is tailored to the organizations specific needs.
Step 3: Evaluate Costs
Evaluate the project costs, and consider ?total cost of ownership? which should include implementation costs, hardware and software costs, monthly subscriptions, pricing models and user licenses.
Step 4: Integrate and Connect
Ensure that the existing systems are all in place and compatible, and, if needed, enable integration with existing systems such as ERPs and financials.
Step 5: Train Staff
Ensure that users are trained in the new system and understand best practices necessary to ensure success.
Step 6: Monitor, Evaluate and Adjust
Monitor performance, evaluate usage and analyze spending, and adjust the solution if necessary to ensure it is meeting the organizations needs.
Conclusion
E-Procurement and Source-to-Pay Solutions deliver wide range of advantages to companies looking to streamline and automate procurement processes. By following the outlined steps, executives can ensure that their organization gets the best possible solution for the budget, leveraging integrated technologies to the fullest potential.
