A Comprehensive Introduction To Source-To-Pay Solutions
Spend Procurement
The value of source-to-pay solution (STP) is dependent on how successfully it is implemented and utilized, from executive-level decisions down to colleagues on the ground. source-to-pay solution reduces manual processing, supports automated, zero-touch procurement processes, and will ultimately decrease time and associated costs for driving value through the supply chain.
Any organization looking to acquire an effective source-to-pay solution should begin by assess their needs. This can include: procurement, sourcing, vendor management, supplier relationship management, expenses, and contract management. Consider the features of the source-to-pay solution and how it will fit into current processes to maximize cost and time savings.
Once the potential solutions are narrowed down, payment options need to be reviewed. Organizations should vet potential solutions on the contractual and financial options they should offer. The payment options depending on the size and complexity of the organization and desired solution, as well as contracts, maintenance fees and other factors.
The next step is working through the implementation of the source-to-pay solution. The implementation phase should involve both business and technical stakeholders in the organization. This includes executive level decisions and business decisions from all engaged partners, on top of technical colleague user training. This should all be approached accordingly with respect to the organizations goals and needs.
Searching for and selecting source-to-pay solution is an involved process, but one which stands to be beneficial to an organizations overall contracting, ordering and fulfillment operations. If the correct solution is chosen, organizations can expect to save money and quickly generate ROI. Here’s how organizations should go about selecting the right source-to-pay solution.
Step One: Research and Document Requirements
Before organizations can choose the right source-to-pay solution, they should take minute to consider what will fulfill their specific needs. This should include everything from technical requirements to internal processes and should be documented to evaluate potential solutions accurately.
Step Two: Choose Solution and Design
Organizations should begin searching for source-to-pay solution that meets their requirements. This should include reviewing features, scalability, and integration options to determine how the solution will fit into the organisation?s structure. Documentation and mapping the system design should also be considered.
Step Three: Analyze and Assess Solution Options
The source-to-pay solutions that meet the organizations requirements should then be narrowed down and assessed for cost, system design, impact on internal operations, and contract terms. This step cannot be skipped, as it will determine what is appropriate financially and organisationally.
Step Four: Negotiate Contract and Price
Once solution has been identified it is time to negotiate contract and associated pricing. This can be complex depending on internal requirements, the size of the organisation, and the negotiations with the provider. Organizations should ensure they are getting the most out of their expenditure.
Step Five: Test, Train and Integrate
Once the contract and pricing have been agreed upon and signed, it is time to begin the implementation of the source-to-pay solution. Technical colleagues should be brought in to configure the system, while business users should be trained on how to use the system and how it will affect internal operations.
Step Six: Monitor and Refine
Once the implementation is complete, organizations should monitor the performance of the source-to-pay solution over time to determine the return on investment and implementation success. The system should be updated as needed to meet changes in internal processes, scale at the organisation grows, and for any other required changes.
Conclusion
By properly researching and comparing different source-to-pay solutions, organisations can find solution that meets their specific needs and will improve their overall operations. Expecting the implementation to take some time and resources to ensure successful solution but the final result should be worth the effort.
