Introduction To Source-To-Pay – Strategies For The C-Suite
S2P Cycle
Source-to-Pay (S2P) technology provides means for companies to increase efficiency, reduce costs, and streamline common operations across the entire business cycle, from procurement to accounts payable. For finance and operations executives looking to refine their organizations purchasing activities, S2P offers comprehensive automated solution that allows for greater financial control and predictive analysis.
At its core, S2P is cycle of streamlining and automating standard financial operations. This can involve anything from the purchase of goods to payment for services. The idea is to streamline the process, leading to lower overhead costs, improved accuracy and the ability to more easily track incoming and outgoing capital.
In this guide, we’ll review the fundamentals behind S2P, the underlying advantages and potential challenges, and provide step-by-step guide to getting the most out of your new investment. After all, the path to successful S2P transformation lies in optimizing and leveraging the existing functionalities of the system and tailoring it to fit your businessespecific needs.
Step-by-Step Guide to Source-to-Pay
1. Begin by researching. Evaluate the market to determine which Source-to-Pay solution(s) offer the features you need as well as the best value for your organization. Consider seeking out survey from an outside expert to get an objective view of your options.
2. Once decision is made about which system to pursue, take the time to understand the Softwares functions. Read the documentation and review videos or webinars to develop working understanding of the system.
3. Next, it is time to set up the system. This can involve taking multiple steps to loosen control from the current system and configure the new one. In some cases, this may mean making manual adjustments to the previous system before it is disabled.
4. The next step is to notify all stakeholders of the changes. This includes communicating the new system’s functions and services to anyone who will be using it.
5. Once everyone is on the same page, it is time to test. Ensure that the system is integrated with the right applications and make sure that key processes are running smoothly.
6. Following testing, it is time to move into the actual automation of processes. Examples of processes that can be automated using S2P include processing procurements, order tracking, invoicing, and payment.
7. Once the system is operational and all stakeholders are comfortable, you can begin to evaluate the data captured from S2P. Leverage the tools provided by the system to identify areas for optimization and streamline processes.
8. Refine procedures over time. As the system matures, refine your approach to each process and use the data to gain more insights and evidence for decision-making.
Conclusion
Source-to-Pay can help companies increase their efficiency and control in finance operations. With an understanding of the basic functions and structured plan for setting up and maximizing value from the system, your organization can hit the ground running and start realizing the tangible benefits quickly. Regardless of the size of the organization or the specific operations, S2P provides comprehensive approach to automating processes and keeping your business finances in check.
