Maximizing Source-To-Pay Procurement With Managed Services
Source-To-Pay Procurement
business today find themselves navigating an ever-evolving landscape. With increasing complexity comes the need for greater efficiency, and this requirement extends to procurement. Any successful organization requires an effective source-to-pay (S2P) procurement strategy as part of its overall procurement workflow, and this is especially true for finance departments in need of managed services. This article outlines step-by-step guide to maximizing source-to-pay procurement with managed services.
First, considering the financial consequences of any strategic decision is of the utmost importance. For this reason, it is vital to accurately and swiftly assess spend with all relevant vendors, and to project future spends associated with those vendors. good way to do this is through automated MRO analytics and insights, which can deliver both cost savings and visibility in the short-term, allowing executives to make informed decisions on the most financially appropriate investments.
The second step is identifying and pursuing improvement options within the sources of spend. This includes identifying areas of improvement throughout the supply chain, as well as determining potential savings from projecting future spend into the data. An effective way to do this is through automated processes that analyze price, supplier performance, and enable comparison of suppliers? performance.
Next, the value of automated supplier enablement and onboarding should not be overlooked. This is critical in reducing effort and cost associated with manual sourcing processes. New supplier onboarding processes should always adhere to secure payment policies, as well as required compliance and tax regulations. Automated supplier onboarding technology can expedite the process, allowing finance departments to enjoy greater efficiency with minimal effort.
Continuing along the same lines, automated requests for quotation (RFQ) and pricing control processes are simultaneously achievable. By honing in on such spending, finance departments can achieve real-time data-driven insights and visibility into supplier pricing. These insights allow for more proactive and intelligent decision-making, as well as result in smoother, faster purchase processes.
The fourth step involves the implementation of automated purchase order (PO) processes. With automated capabilities, PO accuracy and speed can be greatly improved. Additionally, by implementing automated capacity planning and vendor performance management, finance departments can also garner more control and visibility over income.
The fifth step is to ensure that all payments are secure. Establishing secure payment processes, such as ACH payments, is essential to maintaining the integrity of the supply chain. At the same time, payment should always occur on time, in order to maintain strong relationships with vendors and other suppliers.
The sixth and final step is the implementation of managed services. Specifically, having dedicated, experienced personnel to guide the implementation of S2P procurement solutions, such as the ones highlighted in the previous steps, can significantly improve the experience and results within the finance department. Managed services not only automate the S2P process, but also provide trusted partner who is knowledgeable in the finer points of modern procurement solutions.
When all of the above steps are combined, the result is an optimized source-to-pay procurement process that is streamlined, cost-effective, and secure. Any C-suite leader will be able to spot the tangible benefits of such process, as it is capable of providing greater control and visibility into companies procurement strategies. By embracing the advantages of managed services, firms can ensure that their target metrics are met, while also successfully managing costs and boosting operational efficiency.
