Source-To-Pay Solution For Enterprise Procurement
ENTERPRISE PROCUREMENT SYSTEM
Likewise, contract management is another core component to an S2P system. This component allows large firms to set predetermined thresholds for purchasing-based measures, with automatic triggers being enabled to alert relevant parties when budget limits have been exceeded. The source-to-pay tool thus serves as an effective gauge across all departments, allowing stakeholders to keep closer tab of purchasing transactions and maintain compliance with the pre- agreed contractual agreements.
Phase 2: Sourcing Sourcing, module accompanies source-to-pay solution, simplifies the process of looking for the desired end-product or service. The software allows users to find potential vendors directly on the platform, making it easier to make swift business deals with maximum risk mitigation. This confers tremendous advantage to firms that have multiple procurement divisions. In tandem, sourcing through platform also cuts down on the costs associated with network engineering and other associated processes.
Phase 3: Purchasing Purchasing is the signature feature of source-to-pay tool. It is here that organizations can make orders and track progress without leaving the platform. By managing end-to-end orders in system designed with the organizations preferred methodology in mind, firm can significantly reduce the time associated with individual transactions. Automation of invoice payments to suppliers also forms part of this phase.
Phase 4: Receiving Receiving forms fourth core part of the source-to-pay process. As goods arrive, this module allows organizations to easily track goods and capture all key information required in order to process payments. Automated analyses also allow various performance indices to be measured and tracked within one platform.
Phase 5: Inventory Asset Management The inventory asset management phase helps firms in tracking the overall expenditures and goods movement within the enterprise. The automation allows for real-time insights into goods and enables informed decision-making across production and procurement pipelines.
Phase 6: Supplier Management source-to-pay platform helps organizations in managing the performance of their suppliers. This feature allows performance metrics to be tracked and provides an end-to-end tool for working with third-party vendors. Analyses of supplier performance also allow firms to make informed decisions as to whether or not to continue business partnerships.
All these features coalesce to create an effective enterprise procurement system, capable of helping organizations reduce the financial and operational costs associated with procuring goods and services. The source-to-pay system provides the C-suite the necessary vehicle to unlock cost savings, whilst providing tangible efficiencies within the enterprise.
The following set of steps offer guide to setting up and using source-to-pay solution for enterprise procurement:
1. Assess the existing procurement processes and existing contracts in order to determine the relevant pre-agreed budgetary limits.
2. Identify the desired vendors and launch Request for Proposal (RPF) to gauge the market demand.
3. Facilitate negotiations with the vendors to reach favorable settlement.
4. Once settlement is reached, obtain all necessary approvals and authorizations prior to making the order.
5. Create the purchase order and initiate payment transactions, ensuring that the details of the purchase are captured and complied with any pre-agreed contractual clauses.
6. Ensure that the goods and services are received, accounting for all discrepancies, if and when necessary.
7. Track the performance of the goods and the vendors, identifying areas of improvement and ensuring vendor compliance with pre-agreed contractual clauses.
8. Once the services are delivered, make the timely payment of the invoice using the source-to-pay system.
By adhering to the aforementioned steps, organizations can benefit from comprehensive source-to-pay platform for enterprise procurement. For large-scale enterprises seeking to optimize their expenditure and ensure contract compliance, source-to-pay system is the way to go.
