Maximizing Efficiency Through Source-To-Pay Delivered From A Powerful Solution
Material Sourcing Solution
From the C-Suite perspective, executives can take control of their companies entire material sourcing process by investing in Source-to-Pay (S2P) solution. Real-time insights and collaboration can differentiate an average business from an innovative one, leading to an environment of efficiency and competitive market edge.
Ensuring the right combination of sources, systems, and processes is essential. Core operational goals should be in place to provide the correct supplier segments, identify the right sourcing supply channels, and procure materials within committed timeframes while controlling costs. Prior to choosing the right solution, executives should analyze the current availability of resources and knowledge on material sourcing, and identify the right expertise within their company or by sourcing that knowledge externally.
Investing in S2P solution empowers executives to control every step of the material sourcing process, from the purchase request and pricing negotiation to the payment cycle. Streamlining the process increases accuracy and speed, often resulting in reduced costs. This article outlines the steps executives need to take to maximize the efficiency of S2P solution in their companies.
Step 1: Defining Requirements
Prior to investing in S2P solution, it is important to define the objectives and requirements for the system. Executives need to identify the potential gaps in their current system and assess the resources necessary to cover those gaps. Executives should also evaluate their current suppliers to determine the potential risk these suppliers could bring to the organization. Finally, executives need to decide if the S2P solution should be fully automated or and what processes should be integrated.
Step 2: Verifying Compliance of the Solution
Compliance is integral to any S2P solution. Executives should evaluate the compliance capability of the S2P solution and make sure it meets the companies standards, and industry standards as well. The S2P solution should help executives comply with any laws and procedures while also providing secure data, communications, and transactions.
Step 3: Selecting the Right Solution
When searching for the right S2P solution, executives need to consider the functional requirements. The solution should help executives manage the entire supply chain, from supplier selection and order placement to pricing negotiation and payment tracking. Executives should also ensure the solution integrates with their existing systems and process assets.
Step 4: Assessing Costs Benefits
Executives should estimate the cost and benefits of the S2P solution, taking into account any potential return on investment. Executives should also consider the costs associated with onboarding new and existing suppliers, such as potential training costs. Executives should also factor in user fees and maintenance costs.
Step 5: Deploy Support
Once the S2P solution selection is made, executives should start the deployment process, including setting up the S2P solution and integrating it with any existing systems. During this process, executives should make sure the S2P solution supports their suppliers, internal it isystems, and personnel. Executives should also consider the resources required to support the S2P solution during implementation and beyond.
Conclusion
By investing in S2P solution, executives can maximize the efficiency of the material sourcing process while keeping costs under control. From supplier selection and ordering, to pricing negotiation and payment tracking, S2P solution eliminates errors, streamlines the process, saves time and money, and ultimately helps executives focus on core competencies.
