Answering The Call For Optimizing Source-To-Pay With Software
E Procurement Process Steps
Softwaresolutions have been found to be invaluable tools to bolster efficiencies in the often challenging Purchasing function. In the procurement cycle, specifically the source-to-pay process, firms often overlook the capabilities software can provide to streamline the process and add significant value to the top and bottom lines. In order to understand how Softwaresolution can improve operational performance, this paper will explore the building blocks of the source-to-pay process and the subsequent appreciation of software for each step.
The source-to-pay process is composed of four distinct phases. The first increment is ?Sourcing? and encompasses activities from supplier management and identification to contract management and compliance. The second stage involves translating needs into clear, concise orders towards desired outcomes. This ?Order initiation phase? is critical element for the following two that encompass ?Order fulfilment? and ?Payment?. Finally, leveraging analytics and data across the source-to-pay process enables users to ?Optimize? and continue improving upon the process.
Leveraging software to improve operational performance in the context of this process is applicable to all the distinct stages. An optimized source-to-pay Softwaresolution has the potential to help cut costs and time associated with manual processes, ensuring compliance of regulations and policies, and even helping with spend analysis and risk mitigation through robust data analysis capabilities.
In the Sourcing stage, sourcing software can take the time-consuming, manual process of supplier management out of the equation. The software can automate the selection process including prequalification, screening, and ranking of potential suppliers as well as create focused strategic supplier relationships. Compliance requirements, such as certain standards and certifications, can also be automated. This not only saves time, but helps maintain the best quality at low cost through digital negotiations and bid analysis.
For the Order initiation stage, the goal of source-to-pay solution is to ensure accurate and timely order placement through validating quality and price. Software can automate comparison stats to help users make well-informed decisions. Furthermore, an automated process ensures compliance as it narrows down possible sources to pre-approved list of vendors.
Order Fulfillment can be improved through source-to-pay software as firms can move from reactive to proactive approach. Automating this stage reduces errors and aids in timely replenishment without manual intervention. Possible risks, such as overstocking, are less likely to occur with automated tracking of order statuses.
The Payment stage is arguably the most important one. Softwaresolutions allow for quick and easy tracking of invoices, vendor payments, and relevant due dates. Automation at this stage creates streamlined payment process, gets invoices processed quickly, and helps with managing multiple payment options.
Importantly, many source-to-pay Softwaresolutions can offer ?data analytics? capabilities to further optimize the process. Detailed analytics, from supplier performance to contract management and budgeting, can be derived through digital data capture and accurate tracking. This in turn allows for better budget control and monitoring of orders, suppliers, and spending. Digital dashboards assist with customisable reports and improve the usability of digital data.
Overall, Softwaresolutions provide more efficient and robust source-to-pay cycle. C-suite executives in search of Softwaresolution should consider the benefits of source-to-pay software for streamlining procurement at each of the distinct stages and optimising the process, through access to data analytics and monitoring.
