Acquiring Managed Services Via Source To Pay Technology: A Step-By-Step Guide
Source To Pay Service
For executives in the finance space, the ability to quickly and efficiently procure managed services can be integral to the success of their business. Managing supply chain and ensuring that an organization is taking advantage of all the latest technology to facilitate procurement processes can be incredibly difficult and time-consuming. Source to pay technology is an innovative solution for finance executive attempting to find the most cost-effective managed services for their organization.
In this step-by-step guide, the various components of source-to-pay technology will be outlined, from the initial stages of discovering and engaging vendors on the supplier management platform to the later process of executing, managing, and tracking all the transactional aspects of the procurement. By the end of this guide, finance executives should be better informed about how source-to-pay technology works and be able to deploy it to acquire managed services with ease.
Step 1: Developing Clear Source-to-Pay Strategy
To effectively deploy source-to-pay technology to acquire managed services, it is essential to first establish clear strategy. This strategy should include detailed objectives such as to what potential vendors are preferred and why, and the specific requirements that must be met by those vendors. Specifics such as payment terms, pricing, delivery dates, and product quality should be determined to ensure that the ultimate managed services acquired are exactly as desired. Furthermore, this strategy should ensure that all the activities related to sourcing and procurement are conducted within the regulations of the specific entity.
Step 2: Onboarding Vendors
Once the desired specifications for the managed services have been established, vendors can be onboarded on the source-to-pay solution. best-in-class suite should come equipped with suite of supplier management tools which enable an organization to find trustworthy vendors and evaluate them based on key credentials and requirements. The solution should also identify late payments or payment failures, monitor for any noncompliance and test the accuracy of line-item pricing as well as quotes. Thus, finance executives should have clear picture of the vendors and the services they provide.
Step 3: Requesting Quotes
After the source-to-pay platform has identified the potential vendors, quotes may be requested. sophisticated solution should be able to automatically request quotes and track the status of each request, thus providing finance executives with complete visibility into the quote acquisition process. Also, by using advanced supplier technology, users should be able to compare quotes to ensure the best possible price for the desired managed services is being attained. Additionally, the system should inform users of discrepancies between the quote and the actual invoice and bring visibility throughout the entire quote-to-pay process.
Step 4: Executing and Managing the Transactions
Once the quotes have been determined and the contract is formed, source-to-pay technology should be able to facilitate the transactions. This means that the solution should track each item as it moves through its lifecycle and provide notifications when specific milestones in the process such as delivery or payment are reached. With visibility into the entire transaction process, finance executives can ensure that the managed services being provided are of the highest quality and with the best prices.
Step 5: Integrating with the Accounting System
Source-to-pay technology should be able to easily integrate with the entity’s accounting system. This ensures that all the information regarding the transaction is readily available and updated in real-time. By linking the information from the source-to-pay solution with the accounting system, finance executives can have peace of mind that all the relevant data is organized and in one place.
Conclusion
Utilizing source-to-pay technology to enable the acquisition of managed services can be an efficient process for finance professionals seeking to procure the best possible services for their organization. From developing clear source-to-pay strategy to integrating the platform with the accounting system, this guide has provided step-by-step breakdown of all the necessary components of the process. By the end of the guide, executives should have the knowledge to be able to use source-to-pay technology to rapidly and securely find managed services that fulfill all their precise needs.
