How To Invest In A Source-To-Pay Solution
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Investing in source-to-pay solution can benefit organizations significantly. todays solutions carry far-reaching capabilities, offering organizations the opportunity to broadly impact their supply chain, shift spend to preferred vendors, and optimize the entire procure-to-pay process. However, as with any new technology adoption, there are few considerations to be aware of in order to be successful in the implementation process.
Business leaders looking to invest in source-to-pay solutions need to offer reasonable answers to the following questions:
1. What does the current state look like?
In order to understand how source-to-pay solution will impact an organization, it is first important to identify the current landscape. Evaluating the procurement process including manual processes, non-value add activities, existing systems and the organizations existing spend profile can provide the necessary insights to determine where best to focus improvement.
2. What are the primary objectives?
Before investing in source-to-pay solution, leadership must identify the key objectives they are looking to achieve. This could include streamlining manual processes, improving compliance, negotiating pricing and terms, or uncovering supply chain risks such as security and ethical practices. Once the objectives are established, this can help dictate the scope and requirements for source-to-pay software.
3. What are the technology requirements?
Once the objectives are established and the target outcomes are identified, the next step is to select software that meets the organizations specific technology needs. This should include evaluating the organizations current technology infrastructure, as well as its long-term goals. It is also important to review the necessary integrations with other Softwaresolutions, such as ERP or HR systems, to ensure streamlined process.
4. What types of training and support are available?
Once an organization has determined the right source-to-pay solution and successfully implemented the software, they need to ensure they have the necessary expertise to implement and utilize the solution properly. It can be beneficial to assess the availability and type of onboarding and training, as well as support and service offerings.
5. What is the return on investment?
Last but not least, it is important to assess the investment in terms of return. Source-to-pay solutions come with capital and license costs, as well as implementation and servicing responsibilities. Organizations should evaluate the cost versus expected benefit of investing in solution, while also understanding the current and future regulatory environment and the impact on the bottom line.
In order to make the most of source-to-pay investment, business leaders need to evaluate the current landscape and objectives, find the right technology solution, ensure the organization is properly trained, and evaluate the return on investment. By taking these steps, organizations can ensure successful journey to source-to-pay realization.
