Improving Operational Performance Through Source-To-Pay Software
Managing Suppliers
As finance executive, staying current on the latest technological developments is essential for improving operational performance. When considering how to start boosting your business operations, utilizing source-to-pay software is great place to start. Source-to-pay (S2P) software meets the needs of several areas from procurement, to supplier risk management, to accounts payable automation, and payment processing.
The application of S2P processes to acquire goods and services can improve operational efficiency and collaboration between departments in even the most complex of organizations. Since the software automates many of the administrative tasks involved with managing the S2P process, time and effort are saved due to reduced manual tasks. Despite offering numerous advantages, the implementation of S2P software can appear intimidating, as the transition will likely involve changing the existing processes and workflows.
One of the ways to ensure successful implementation is by integrating the software with other important areas within the organization. For example, you could facilitate streamlined S2P process with an enterprise resource planning (ERP) system, linking the purchasing and accounts payable modules. In essence, the ERP and S2P systems are synchronized and both are updated when an invoice is received, reconciled, and paid. Utilizing an integrated system helps with visibility to the purchase record and tracking of invoices, allowing you to quickly pinpoint discrepancies.
Partnering with knowledgeable supplier is also must for successful S2P system implementation. seasoned supplier can provide guidance and support with the set-up, as well as help with identifying the current S2P process deficiencies. The supplier?s expertise can prove to be invaluable in aiding your organization to set up an efficient S2P system. Additionally, professional assistance can benefit the implementation process in areas such as training users, and testing the system.
Choosing the best S2P software to suit your organizations particular requirements is crucial step you should factor during the implementation phase. The Softwareshould include several S2P capabilities such as end-to-end transactions, purchase-order management, invoicing, and electronic payment. Flexibility is also key, as it enables you to tailor the software to your organizations unique needs.
Organizations with strong S2P software are likely to remain competitive and successful in the long run, as the increased efficiency and supplier collaboration brought about by the software will boost performance. By following the steps outlined in this article, finance executives can kickstart their transition towards integrating successful S2P system for their organization.
