Leverage Value Via E-Procurement Outsourcing
E Procurement Outsourcing
Big picture spending decisions often require through evaluation of enterprise-wide data, including cost savings and operational benefits, to ensure the fiscal health of business. e-Procurement outsourcing solutions offer enterprises the opportunity to effectively weigh their buying decisions and strike the balance needed to optimize their investments.
The e-procurement outsourcing solution effectively encapsulates business procurement, sales and accounts payable functions via source-to-pay software platform. The components of this system include supplier onboarding, contractual requirements, and inventory tracking. By using source-to-pay software, decision makers can assess companies purchases, contracts and accounts payable in order to provide unified and holistic approach to sourcing the products and services needed to meet their commercial objectives.
Step-by-Step Guide for Implementing Source-to-Pay Solution
Step 1: Set goals for the implementation of the source-to-pay solution. These should include the cost savings and efficiency gains, as well as any regulatory requirements or expected go-live dates needed for the implementation.
Step 2: Create supplier onboarding program. The optimized onboarding of suppliers is key for the success of the implementation. This phase is also where the company decides about regions of supplier coverage, the types of products purchased and the tendering, approval and ordering process.
Step 3: Establish templates for range of contractual requirements.The demands of the supplier relationship should be properly documented and accounted for, including payment terms, milestones, and risk assessment documents. This step ensures that agreements are in place to protect the vendor as well as the organisational investment.
Step 4: Identify appropriate metrics and KPIs. To effectively ensure the successful return of the source-to-pay solution and its continued use, metrics and KPIs should be established and tracked. This will help measure performance and may include purchasing costs, delivery times and supplier performance.
Step 5: Activation of the source-to-pay tool. Setting up the source-to-pay process should begin with the selection of the appropriate software that best meets the needs of the organisation. After the solution has been selected and implemented, the next step is to start building out the associated processes and procedures for it. This likely includes training for stakeholders, setting up security protocols, developing an approval process and system testing.
Step 6: Utilize inventory tracking tools. Taking inventory is an integral part of the process that helps track orders, systems of record and acceptable pricing. This step helps ensure that the supply chain fully meets the needs of the organisation.
By using source-to-pay solution to replace traditional procurement functions, enterprises can take their buying decisions to the next level. Ultimately, this solution helps to save time, money and resources without sacrificing the goals that the company aims to meet. With planned out process in place to activate and optimize the source-to-pay software, organisations have the capability to leverage value through their e-procurement outsourcing solutions.
