Maximizing Technology Strategic Sourcing With Source-To-Pay Solutions
Technology Strategic Sourcing
Source-to-pay (S2P) software is an invaluable tool that can help organizations maximize their technology strategic sourcing efforts. S2P solutions present comprehensive, streamlined approach to the entire product procurement process, automating every step in order to increase transparency and overall efficiency, an invaluable resource for the Chief Financial Officer (CFO) to help improve the long-term management of operational costs and risk.
But just what exactly is this elusive source-to-pay software? Well, the term refers to suite of computerised software applications that span the full range of pre- and post-purchase activities. This suite typically includes:
? Request for Proposal (RFP) and Request for Information (RFI) management.
? E-procurement, which involves browse-and-buy online catalogues and communication of purchase orders and invoices electronically.
? Contract management, which entails the tracking of vendor performance and the capacity to manage prices, contracts and payment methods.
? Supplier Performance Management (SPM) that is used to measure and optimise relationships.
Combined, these components allow buyers from variety of procurement types to instinctively identify the best possible supplier while ensuring they choose the most cost-effective, compliant and reliable option.
Let?s look now at some of the main advantages of source-to-pay software.
Competitive Advantage
Deploying source-to-pay solution allows business to respond quickly to changes in the marketplace while also realigning the supply chain to the companies needs. This in turn provides competitive advantage, enabling the CFO to proactively manage and optimise their organisation?s supply chain.
Cost Reduction
Thanks to the increased speeds of electronic transactions, the proliferation of online catalogues and automated supplier management that many source-to-pay solutions offer, business are able to drastically reduce their overall costs. Streamline processes and automated analytics also provide invaluable insights into areas of expense that may need further review.
Elimination of Risk
The risk of fraud, mismanagement and abuse of the buying process are all factors that are eliminated through the use of source-to-pay software, thanks to higher levels of transparency throughout the entire procurement process. The automated analytics of this software also help to ensure that processes remain compliant with the latest regulatory landscape an important factor for any CFO concerned with staying in control of the financial exposure of their organisation.
So there you have it, just some of the benefits that source-to-pay solutions offer in terms of facilitating and optimising the technology sourcing process. Deploying comprehensive S2P solution can substantially increase efficiencies and reduce costs, all of which should be significant concern to the CFO.
