Unburdening The Source-To-Pay Process: A Comprehensive Guide
E SOURCING DEFINITION
An efficient and complete Source-to-Pay program should cover the whole process, from identifying potential suppliers to contract implementation. Therefore, the first step in developing an optimal system should be benchmarking, or examining the particular procedures used in an organization in order to identify potential opportunities for automation and determine if an S2P system can be custom tailored to their specific needs. As such, C-suite professional should analyze the current sourcing process, starting with identifying the potential pitfalls and areas of improvement in the current system, and then considering if S2P could provide an answer.
Step Two Supplier Identification:Once an S2P system is identified as being desired solution, the next step is to search for and identify potential suppliers who are capable of meeting the organizations needs. This can be done through traditional methods, such as gathering recommendations and researching industry news, or through platform that includes Supplier Discovery Engine, allowing for rapid, transparent and secure search for pre-qualifying list of suppliers.
Step Three Bid Scoping:The third step is to tender bids from the chosen suppliers who suitably meet the organizations needs. This is often done by formalizing and laying out the terms requested in an open and transparent manner, as well as setting out the commercially accepted terms and conditions that the selected bidder must agree to prior to them being awarded the business.
Step Four Contract Negotiation:The fourth step is to negotiate the terms of contract and then agree on fair and agreed specification of services, pricing and timelines. Any potential confusion should be managed through platform-based solution, as well as regular and collaborative communications with suppliers. During the contract negotiation process, it is also important to enable electronic contracts and consider automating the acceptance and signing of said contracts.
Step Five Contract Implementation:The final step is to implement the contract. This improves and expands the relationship between the supplier and the organization, as well as eliminates manual processes in the flow between an organization and its suppliers. This system ensures that payments are made and managed in timely and secure manner, resulting in an automated payment life-cycle.
Conclusion:In conclusion, S2P software provides platform-based solution for handling mundane and recurring tasks associated with the sourcing process. C-suite professionals looking for an S2P solution should engage in benchmarking their current processes to gain an understanding of how their organization can benefit from such system, followed by supplier identification and tender scoping, leading to contract negotiation and implementation. By utilizing an S2P system that can be tailored to their specific needs, C-suite professionals may be confident that the sourcing process is secure and transparent, cost and time efficient.
