Maximizing Efficiency Through A Source-To-Pay Software
Procurement Sourcing
It is no secret that the procurement process involves considerable complexity, raising considerable challenge even for the most experienced procurement teams. Unfortunately, despite the investments in technology, only 25% of organizations surveyed claim to have mature sourcing capabilities. To help organizations securely and strategize procurement, enter source-to-pay software (STP). Encompassing crucial elements of the procurement process, STP software is intended to make price negotiation, contracting, supplier management, invoicing and more, efficient, profitable and secure.
While the value of STP solution is undeniable, it can be challenging to implement, especially for those with less technical background. To make the process more accessible, this guide has been developed to walk executives through STP implementation from start to finish.
Step One: Understand the Needs of Your Business
Before beginning implementation of STP solution, executives should prioritize gaining comprehensive understanding of their business needs. Consider what is expected from the source-to-pay software, and ensure that all key stakeholders are included in the decision-making process. Crucially, executives must define which processes need to be automated, and develop strategy for the procurement cycle that is organized, efficient and cost-effective.
Step Two: Select the Appropriate Software
Once the needs of the business are established, executives can begin the process of selecting an appropriate software. Consider number of factors including security, scalability and integrations. Pay particular attention to the available feature sets and ensure these are compatible with the business needs. Prioritize researching customer reviews and supplier feedback, and do not hesitate to contact sales representative to discuss the best fit.
Step Three: Model the Vendors
It is highly recommended that the vendor landscape is thoroughly examined and analyzed before onboarding any vendor. This helps to ensure potential vendors have the capability to meet the business needs, are willing to continually strive for improvement, and have the capacity to support the business in the long-term. Executives should also seek out vendors with positive supplier sustainability profile and certified qualifications.
Step Four: Source the Suppliers
Once the list of vendors has been confirmed and consensus has been established, executives should begin the process of actively sourcing the suppliers. Engage the vendors directly and ensure that upcoming contracts are structured to meet the financial and qualitative objectives of the business. Executives should pay particular attention to advances in technologies such as artificial intelligence, address any compliance issues and ensure comprehensive sourcing strategy is developed.
Step Five: Implement the Software
Now that the vendors have been sourced, executives can move to the implementation of the chosen STP software. Depending on the complexity of the software and the resources of the organization, this can take considerable time and focus. As such, it is important that the key stakeholders within the organization are consulted whenever possible. Ensure that any technical questions are addressed by IT professionals and engage vendors to ensure the solution is compatible with the current infrastructure.
Step Six: Connect with Suppliers
Once the implementation is complete, the process of connecting with suppliers can begin. Executives should seek to develop ongoing relationships with vendors and source the goods at the best value available. Additionally, seek out potential collaboration opportunities and ensure that the chosen software is optimized to drive continual value.
Step Seven: Use Data Analytics
There is no denying the value of data and analytics when it comes to optimizing the procurement process. Executives should analyze the available data to identify opportunities to further streamline processes, create predictive models, predict bid prices and more.
Conclusion
The procurement process can be considerable challenge, especially for those with limited resources. To help executives maximize efficiency and drive value, consider introducing source-to-pay software. Following the seven steps outlined in this guide, C-suite executives can ensure the implementation is successful and the chosen solution is compatible with the business needs.
