How To Improve Your Source-To-Pay Solution
P2P Process Analysis
It is becoming increasingly important for CFOs and executives in the financial departments of organizations to be forward-thinking when leveraging existing source-to-pay solutions. P2P process analysis provides understanding into ways an organization can better streamline their processes and maximize the capabilities of their source-to-pay solution. Doing so will have the effect of increasing efficiency, producing cost savings, and allowing for better visibility into the performance of their financial operations. The following guide provides step-by-step approach to help CFOs and executives get the most out of their existing source-to-pay solution.
Step 1: Establish an objectives-oriented approach to growth.
Before attempting to implement any changes to your source-to-pay solution, determine which objectives you want to achieve and how they are aligned with your organizations overall goals. If new process is introduced to improve efficiency in the process, consider how this will help form the overall strategy used in the companies finance and business operations. Additionally, understand the specific challenges you are likely to encounter when attempting to make changes to the system in cost-efficient manner.
Step 2: Take inventory of current processes.
In order to improve the performance of your source-to-pay solution, take look at all of your existing processes and assess their effectiveness. Take into account the existing systems and technologies already in place, any manual steps taken in the process, and any areas that are lacking in terms of sourcing, approval, purchasing, and reporting.
Step 3: Look for ways to streamline processes.
Once you have identified areas that could be improved, look for ways to make tweaks to the existing processes and design plan for incorporating any additional technology that might be needed. Evaluate existing technologies for any weaknesses, determine whether changes to the source selection process will help to streamline processes, and consider ways to increase visibility into spending.
Step 4: Test and analyze the solution.
When changes have been implemented to the source-to-pay solution, thoroughly test the solution to ensure it meets the expectations set out. Measure its performance based on the criteria initially established, taking into account the improvements made in terms of cost savings, efficiency, and visibility into spending.
Step 5: Final Steps
Finally, ensure that all necessary documentation is kept up-to-date in terms of the changes made to your source-to-pay solution. Export any necessary data and confirm that users have been adequately trained on how to use the upgraded system. Once complete, adjust the budget accordingly and be sure to document any lessons learned throughout the process.
Improving the performance of your source-to-pay solution can have the effect of allowing for better visibility into the performance of an organizations financial operations. By taking structured, objectives-oriented approach and following the above steps, CFOs and executives can maximize the capabilities of their existing source-to-pay solution and achieve their desired results.
