Efficient Supplier Management With Source-To-Pay Solutions
Supplier Management Software
Securing the most viable suppliers from the market is necessary task for business of all sizes. However, managing sophisticated network of suppliers can be an arduous process. Thus, improving the efficiency of supplier management is crucial in order to support an organizations global supply chain. This is where source-to-pay Softwaresolutions come in. Such solutions can enable business to streamline their most important tasks related to the handling of suppliers, making way for higher levels of efficiency and cost savings.
To understand the effectiveness of source-to-pay solutions, it is important to first consider the complexity that is faced by finance departments in their daily operations. According to well-respected market research firm, an average of 40-50 percent of time is spent by finance teams in vendor and accounts management, contract management and invoice/expense management. By implementing secure, automated source-to-pay platform, business can save both time and money.
Hence, C-suite executives looking for reliable source-to-pay solution can adopt the following approach:
Step 1: Analyze current supplier management processes:
Before pursuing source-to-pay solution, it is important to review and analyze existing processes that are in place for supplier management in order to identify areas that require improvement. For instance, through the analysis of data around amounts paid, one can pinpoint which suppliers offer the most significant savings.
Step 2: Select suitable technology:
Once the current processes have been reviewed and areas of potential improvements have been identified, executives can then proceed to select suitable source-to-pay technology. When comparing different options, executives must ensure that the chosen solution provides access to the most up-to-date market intelligence, supplies them with the right analytical tools, and offers integration with third party applications.
Step 3: Analyze results:
It is important to continuously evaluate the results of the implemented source-to-pay solution. After few months, an analysis can determine whether the solution is effectively achieving the desired outcome. If not, corrective measures may need to be taken.
Step 4: Implement an effective supplier onboarding process:
Once source-to-pay solution has been chosen and implemented, an effective onboarding process should be put in place for new and existing suppliers. This ensures that all relevant information is gathered from each supplier and recorded in the system and stored in secure manner. Furthermore, automated systems may also be set up to alert when critical terms, such as contractual agreements and payment terms, are about to expire.
Step 5: Utilize technology for better decision-making:
Using the current supplier information stored in the source-to-pay solution, executives can accurately assess the organizations existing supplier base and identify potential opportunities for further cost savings or improvements. The technology should provide an efficient platform for understanding supplier performance, analyzing market trends, and identifying the most suitable suppliers.
Conclusion
By leveraging the features that source-to-pay solutions offer, executives can effectively manage their suppliers and increase the efficiency of their finance teams. By implementing secure and automated platform, organizations can effectively increase the overall performance of their supplier management processes and gain access to the most up-to-date market intelligence. Establishing an effective onboarding process for new and existing suppliers is also crucial for business to ensure that all relevant data is stored and remains up-to-date, allowing for more accurate and reliable decisions.
