Optimizing Operational Performance With Source-To-Pay Automation
AUTOMATED PURCHASING TOOL
Efficiency of sourcing and procurement operations is essential for the success of any large organization. To that end, process automation can be powerful tool for streamlining purchasing operations, boosting cost-effectiveness, and creating positive impact on overall operational performance. Source-to-pay (S2P) software is the next generation of automation for purchasing and related processes, helping companies attain the kind of efficiency and reliability their competitive edge demands.
For Finance Executive looking to leverage S2P software to its fullest potential, key topics to consider include the selection process, implementation techniques, and use of analytics. All three are important to ensure that S2P automation helps optimize operational performance efficiently and cost-effectively.
When determining the right S2P tool for the organization in question, the definition of success is determined first. What are the desired outcome and desired return on investment? It is important to operationalize goals so the right tool is chosen and optimum results are quickly achieved. Afterwards, the Finance Executive needs to assess the vendor’s technology and make sure its capabilities are compatible with the companies current and future business requirements.
Once S2P solution is selected, its implementation should be top priority. This step requires extensive planning and oversight from the C-suite and must comply with both the companies internal policies and external regulations. Depending on the scope and complexity of the project, engaging an external consultant may be necessary for successful integration. Post-implementation, it would also be wise to engage experts for ongoing operations and maintenance support.
In addition to the technical challenges associated with S2P implementation and implementation, incorporating analytics into the software can help the company take their performance to the next level. When used appropriately, analytics can uncover hidden opportunities for cost savings and improved service levels. The enhanced visibility and control afforded by analytics can allow companies to get more out of their S2P software and drive bottom-line results.
Source-to-pay automation holds the potential to revolutionize purchasing operations, but needs to be managed carefully to realize that potential. Doing the necessary work upfront is absolutely essential to ensure technology yields the desired results and boosts operational performance.
