Achieving Proactive Streamlining Of The Procure To Pay Process Through A Source-To-Pay Solution
Procure To Pay Process Kpi
Organizations that take proactive stance on supply chain management can amass tremendous advantages and efficiencies that expand beyond the procurement cycle. Leveraging Source-to-Pay (S2P) solution offers unique avenue to capitalize upon the potential of unifying manual processes and fostering strategic, proactive ordering and payment practices throughout the entire procurement to payment (P2P) process.
In the midst of this digital transformation well underway, organizations can readily reap the benefits of S2P through streamlined solution that consolidates numerous manual elements in the omnichannel approach of demand and supply. This article offers step-by-step guide to using an S2P solution that actively monitors, measures, and implements the KPIs for success, keeping P2P processes at the forefront of finance leader?s mind.
Step 1: Assess Your Current P2P Process
An initial step towards leveraging S2P solutions is to take deep dive into the current P2P cycle from within procure to pay (P2P) audit ?an analysis of the myriad of spend structures, contracts, and contracts ?to provide insight into where tactful steps toward unifying disparate processes can be implemented.
Step 2: Determine Automation Opportunities
Once full audit is complete, organizations may determine appropriate opportunities to automate certain activities such as contract negotiation and sourcing to streamline the ordering process. holistic S2P solution allows customization tailored to meet the individual needs of each organization and give decision-makers the confidence to guide operations towards successful practices and pinpoint areas of improvement.
Step 3: Establish Cloud-Based Solutions
As technology revitalizes business models, cloud-based S2P solution makes it easy to establish, maintain and access information. Cloud-based S2P solutions allow organizations to remain flexible and sustainable while minimizing costs. Additionally, this approach enhances the organizations ability to assess business performance and modify processes quickly and easily.
Step 4: Introduce Spend Analysis
Spend analysis can inform significant cost reduction opportunities, allowing for more accurate, timely, and thoroughly measured expense management. Suspend analysis can also extend towards efficiently forecasting budget. An S2P solution does more than just automate and streamline processes; it allows for maximum savings to be realized through improved financial accuracy and pro-active supplier management.
Step 5: Assign Responsibility to Each Level
A successful S2P solution requires the designated responsibility to be assigned to the appropriate levels. Funding, approvals, and orders must be given to the respective departments and held accountable through proper controls. This step eliminates the potential for challenge or confusion within the system and allows for unified and structured path towards successful P2P cycle.
Step 6: Monitor and Measure KPIs
Finally, organizations should utilize technology to stay proactive in the process and ensure accurate measurements of the P2P cycle. An S2P solution can provide frequent analytics and tangible representations of KPIs such as discounts and compliance rates in order to assess progress and identify where improvements can objectively be made.
To gain long-term, strategic competitiveness in the market, organizations must empower their P2P cycles with the same commitment and tenacity of their core business. Source-to-Pay solution is the most effective outlet for consolidating various processes and optimizing performance of the P2P journey. Following the steps outlined in this article, organizations can achieve capitalization in the manageability and intelligibility of the modern spend cycle.
