Streamlining Your Procure-To-Pay Strategy With Managed Services
PROCURE TO PAY STRATEGY
As the business environment becomes increasingly competitive and cost-sensitive, it is essential that the procurement-to-pay process is processed in an efficient and effective manner. To remain competitive, enterprises must prioritize the procurement-to-pay process and ensure that the process is strategically managed. In pursuit of that objective, numerous companies are taking up managed solutions as part of their procure-to-pay strategy.
Managed services, also known as managed solutions, refer to the process of outsourcing specific operational activities to qualified provider. This provider can handle the operational aspects of the specific activity, thereby allowing business to focus on core competencies. By working with an experienced managed services provider, an organization can avail numerous benefits, such as faster procurement and payment processing while mitigating operational costs. As such, numerous organizations have turned to managed services in order to streamline their procure-to-pay strategy.
The following provides step-by-step guide of how you can use managed services as part of successful procure-to-pay strategy.
Step 1: Identify the Scope of Your Procurement Process
The first step in the process of integrating managed services into your procure-to-pay process is to identify the scope and the extent of your procurement process. Companies must determine which activities are to be automated, which activities must remain manual, and which activities need revision. Further, an organization must identify the stakeholders involved in the procure-to-pay process and what role each plays in the process.
Step 2: Assess Your Requirements
Once the scope and extent of your organizations procure-to-pay process has been identified, it is important that comprehensive assessment of requirements is conducted. This assessment should entail an analysis of the existing procure-to-pay processes and the systems used to implement them, while considering the companies short-term and long-term objectives. The assessment should include analyzing the processes to determine performance gaps and any external and internal regulatory requirements which must be addressed.
Step 3: Choose Managed Service Provider
The third step in the integration of managed services in procure-to-pay strategy is the selection of provider. It is important to choose managed service provider who is experienced and knowledgeable enough to develop and deploy successful procure-to-pay process. When selecting provider, organizations must consider factors such as track record, technology, cost, operational stability, scalability and flexibility.
Step 4: Implement Processes
Once the provider has been selected, the next step is to develop set of processes according to the scope identified in step 1. This may require making adjustments to existing processes or developing new processes and implementing them. The processes may include procure-integration and payment integration and may involve automating the processes and integrating systems such as ERP’s, CRM’s and e-procurement systems. After the processes have been implemented, they must be tested and monitored.
Step 5: Analyze Results
The ultimate step in the integration of managed services into successful procure-to-pay strategy is to analyze and monitor the results. This can involve comparisons of pre-project performance and post-project results. Such analysis can provide organizations with valuable insight into procurement-spending and performance trends, as well as areas in need of potential improvement.
Closing Remarks
In conclusion, managed services can serve as powerful tool in the optimization of procure-to-pay process. Integrating managed services into the process requires careful consideration of each step of the process and allows organizations to focus on core activities while reducing costs, improving performance and staying competitive. With the right managed services partner, organizations can gain an advantageous edge in the procurement-spending and payment processes.
