A Primer On Sourcing With A Source-To-Pay Software
Sourcing For Supplier
Leveraging modern technology to streamline the procurement process has been cornerstone of effective financial management. Sources-to-pay solutions offer means of consolidating data-driven decisions in highly integrated system of digital workflows. As result, retrieving and analyzing supplier data to inform wise sourcing is possible with little to no manual effort. Here, executive decision-makers in the finance department will learn the basics of sourcing with source-to-pay software.
Step 1: Identify Supplier Categories
First, identify key supplier categories and associated requirements. Any sorting methods employed should be based on operational factors, like quality and cost standards, as well as legal factors, like market and labor regulations. Once supplier categories and associated needs have been established, decision-makers may proceed to Step 2.
Step 2: Explore the Supplier Database
In this phase, decision-makers assess vendor performance data beyond the available pool of usual suspects. Suppliers are examined across several variables, such as traits like supplier size, service package, delivery reliability and location of operations.
Suppliers are also ?rated? to ensure only the most appropriate vendors flow into the approved suppliers list. Suppliers score points across criteria specified in their profile, so financial officers can securely access verified data related to supplier background, prior performance and service offering.
Step 3: Evaluate Suppliers Request
Request and evaluate proposals online once limited number of appropriate suppliers have been identified. Quickly populate RFPs and respond with befitting ROIs and other key information pertaining to the purchase.
Evaluate data at fully automated rate and keep track of budget overheads. Compare proposals through custom dashboards and tailor the data to meet new, unanticipated requirements. This keeps financial officers in the loop and allows for varying needs to be met expeditiously.
Step 4: Negotiate and Award Contract
Once evaluation is complete, commence negotiations. Source-to-pay solutions enable financial directors to check their proposed milestones against negotiated contract terms. Establish contract templates for frequent buyers and quickly alter content for new opportunities.
Ensure all accepted contracts comply with existing laws, regulations and organizational mandates and arrange for payment schedules. Thus, financial officers may award contracts with automatic adherence to internal policies.
Step 5: Facilitate Sourcing Process
Finally, ensure the entire sourcing cycle is being facilitated. Source-to-pay solutions allow posts-award performance tracking to refine and streamline sourcing processes. This therefore yields more accurate predictions and improved data governance going forward.
Conclusion
This primer has outlined the basics of sourcing with source-to-pay software. To elaborate further, executive decision-makers must begin by identifying and exploring supplier categories. Evaluation of supplier requests and negotiation of contracts will follow and, ultimately, awards can be facilitated. Furthermore, an integrated focus on data-driven decision-making throughout this process will yield improved results over time.
