Getting The Most Value From Your Source-To-Pay Software Solution
Procure To Pay Process Improvement Tool
Executive decision-makers tasked with finding the most suitable, comprehensive source-to-pay solution for their organization face the daunting challenge of navigating through the many vendors and options in the field. Source-to-Pay software, formerly known as Procure-to-Pay software, automates and integrates all the necessary processes from identifying and sourcing products or services to purchase, through payment of accepted invoices. This article aims to equip executives with the information to make an informed, value-generating decision in their Source-to-Pay Softwareselection.
Step 1: Define the Sources of SupplyThe selection and procurement process starts with understanding your organizations unique needs. These need to be mapped to the sources of supply, which typically includes: direct material, indirect material, services and software. Analyzing and capturing the usage- and spend-patterns of each of the categories provides robust platform that is necessary for selection, negotiations and successful implementations of your Source-to-Pay Softwaresolution.
Step 2: Assess Your organizations Supply and Sourcing HabitsOnce the sources of supply have been identified, the next step of the Source-to-Pay selection process is to analyze your current processes and fundamentals of supply and sourcing. Start by defining and assessing contracts, stakeholders, customer experience, supplier base, user management and organizational objectives. This should provide you with an inventory of all the opportunities aligning your organizations source-to-pay processes to support your strategy.
Step 3: Identify Core RequirementsBased on the data and facts collected, clear set of requirements should be formulated and outlined. These requirements should include all the functionalities and capabilities the new Source-to-Pay solution must deliver. Some core requirements include: vendor management, e-procurement, cost saving, spend visibility, compliance and risk management and analytics.
Step 4: Evaluate and Select VendorsOnce the list of core requirements has been determined, the next step is to identify potential vendors. When selecting vendors, consider factors such as cost, customersatisfaction metrics, implementation time, features and functionalities and vendor support. It is also important to make sure the proposed system supports the growth and future strategies of the organization. To simplify the selection process, there are many vendors in the field that offer comprehensive Source-to-Pay solution platforms.
Step 5: Start ImplementationOnce preferred vendor is selected, it is important to ensure smooth and on-time implementation. Though every vendor and organizations setup is unique, the implementation process typically includes several common activities, such as change management, training and data migration. An organized, well-planned implementation process is crucial to ensure the success of the Source-to-Pay system.
Step 6: Maximize UtilizationThe last but most important step in the process is to get users to use the system and maximize its usage. This includes promoting user adoption through customized training, formulation of usage guidelines and holding regular training sessions. Utilizing the analytics capabilities of your Source-to-Pay system can also provide valuable insights into user behavior and preferences.
In summary, Executive decision-makers tasked with evaluating and selecting the correct Source-to-Pay system for their organizationshould consider the sources of supply, assess the organizations supply and sourcing habits, identify core requirements, evaluate and select vendors, start implementation, and maximize utilization. Doing so will ensure successful implementation, maximize the value of the system, and provide the organization with tangible benefits.
