Maximizing Managed Services For Procure-To-Pay Order-To-Cash
Procure-To-Pay Order-To-Cash
In the modern business world, organizations are under immense pressure to find ways to optimize the financial supply chain and maximize return on investment. Many companies rely on Managed Services to help streamline the procure-to-pay order-to-cash (P2P/O2C) process. This practice can provide significant cost savings and unlock tremendous value in the overall financial management process of an organization.
For many executives, determining the ROI of investing in Managed Services can be confusing and complex. To simplify the decision-making process, it is important to understand how these services work and the steps necessary to implement them in an efficient and effective manner.
An Introduction to Managed Services
Managed Services is an outsourcing solution that can help streamline certain business processes, such as the P2P/O2C. It involves transferring responsibility for certain business activities to third-party vendor who is proficient service provider. These services are typically provided via contractual agreement that defines the scope of work and the governing parameters of the relationship.
In the case of the P2P/O2C process, Managed Services encompasses variety of tasks ranging from invoice creation to payment processing. The right service provider can assist in the management of the entire process, from purchase order to cash receipt, ultimately striving to reduce the manual effort and/or processes associated with the overall financial process.
Realizing the Benefits of Managed Services
To comprehend the value of investing in Managed Services, it must be explained that these services can offer enhanced visibility and control, improved accuracy, reduced redundancies and errors, and more effective cash management. All of these benefits allow the organization to focus their time and resources on other more value-adding activities.
Additionally, utilizing Managed Services to manage P2P/O2C process can reduce the number of manual processes involved in the financial supply chain and streamline the entire process. As result, the organization will see improved financial efficiency and cost savings. Ultimately, the goal is to maximize the success of the organization.
Steps to Implement Managed Services
1. Fully understand the current P2P/O2C process and identify pain points.
Analyzing the current process will provide comprehensive understanding of the existing status. Doing so will help to identify specific weak points and areas of improvement, aiding in the decision-making process surrounding the implementation of Managed Services.
2. Choose the right service provider.
Not all Managed Services providers offer the same offerings and capabilities, and some may specialize in certain areas of the P2P/O2C process. It is important to select the most suitable vendor for the organization, as the partnership should completely align with the organizations needs and objectives.
3. Collaborate with the service provider to define project parameters.
After service provider is chosen, it is important to collaborate and create scope of work that clearly defines the project parameters and expectations. Doing so will ensure that the Managed Services provider understands the exact needs of the organization and the project goals.
4. Source the best technology available.
The use of robotic process automation, blockchain, cognitive and AI technology can help maximize the value of Managed Services. As all these services are rapidly evolving, organizations must source the right technology to ensure success.
5. Leverage analytics to measure success.
Analytics should be used to measure the success of the Managed Services. Doing so will create quantitative evaluation of the current processes, as well as enhanced visibility and control into the overall operation.
Final Thoughts
Managed Services has the potential to revolutionize the P2P/O2C process, resulting in improved financial efficiency, cost savings, maximized ROI, and streamlined operations. When implemented correctly and managed successfully, these services can provide multitude of value to the organization. By selecting the right service provider, sourcing the right technology, measuring success, and managing the P2P/O2C process, organizations will be well on their way to maximizing their returns.
