Achieve Procurement Productivity Through A Source-To-Pay Solution
Procurement Tool
Finding source-to-pay solution can be an intimidating task for the executive in charge of the finance department, especially when the cost of the procurement software, as well as its implementation, needs to be taken into consideration. However, source-to-pay solution can be incredibly beneficial for business, saving them time, money and human effort, hence achieving higher overall productivity.
The most cost-effective method for companies to obtain tailored source-to-pay solution is to do ample research into the software options available, identify what the companies specific procurement needs are, and then identify the best-suited product that meets these requirements. Luckily, with the availability of online resources and cloud-based platforms, this process has become much simpler and far more efficient.
This article will explain in detail how to use source-to-pay solution to achieve maximum procurement productivity. Read on to find out more.
Step-By-Step Guide
Define Your companies Procurement Requirements
The first step to using source-to-pay solution for greater procurement productivity is for you to identify the areas of the companies procurement process that need to be optimized. Examples of such areas of expertise include, but are not limited to, connecting with suppliers, creating and managing procurement contracts, purchase requisitions, supplier invoice processing and risk management.
It is also good idea to identify any gaps or inefficiencies in the current procurement process, as well as what emerging risks or upcoming projects require extra attention. By doing this, you can best position your company to make the most out of the available source-to-pay solution.
Research Source-To-Pay Solutions
Once you have identified the key areas of your procurement process that need to be optimized, the next step is to research the source-to-pay solutions available on the market. Start by creating list of the features you need, and then review various source-to-pay products. Ideally, the chosen solution should include features such as budgeting and forecasting, contract management, collaborative negotiation, and vendor management platforms.
Moreover, cost and implementation also need to be taken into account, as well as any relevant data security requirements that the chosen source-to-pay solution should meet.
Perform Demonstration Evaluation
Once you have identified source-to-pay solution that meets the previously-identified needs of your business, it is time to evaluate the software in action. It is hence recommend consulting the vendor to demonstrate its product in trial setting, allowing you to discuss potential issues, test the product?s functionality, and request product implementation.
This is an invaluable opportunity to assess whether the source-to-pay solution effectively addresses the identified procurement process needs and addresses any identified inefficiencies.
Negotiate Your Source-To-Pay Solution
The fourth step is to negotiate the terms of the source-to-pay solution, aiming for the most cost-effective solution for both parties, as well as an implementation strategy. Consider any planned budget and timeline, as well as any additional requirements, such as workflow and risk management, that the source-to-pay solution should address.
Roll Out the Source-To-Pay Solution
Once you have negotiated an attractive and comprehensive source-to-pay solution, the final step is to roll it out and make the most of its features. Make sure to plan for adequate and engaging training for employeeto ensure smooth transition and adoption of the source-to-pay solution.
Conclusion
Using source-to-pay solution can be an intimidating task. However, by following the steps outlined in this article, you can make sure that best position your company to make the most out of this technology. By outlining your procurement goals, researching appropriate solutions, conducting demonstration of chosen software, negotiating the contract and implementing the solution, you can transform your business? overall productivity and profitability.
