Achieving True Source-To-Pay With A Holistic Software Solution
E-Sourcing Tool
To begin, business leader should define their organizations current and future purchasing requirements. This includes: Establishing the types of goods and services that need to be sourced? Establishing contract types and thresholds? Establishing negotiation protocols
Step 2: Perform Due DiligenceOnce companies sourcing and procurement needs are identified, leader should review their existing software and process capabilities. This involves an assessment of the current procurement process, current software, and how these tools fit or do not fit into their current strategies.
Step 3: Research SolutionsOnce comprehensive assessment of companies existing strategies is complete, it is important to research source-to-pay solutions. During this step, organizations should consider the features, benefits, and drawbacks of each potential solution. This includes assessing whether tool allows companies to connect and collaborate with suppliers, streamline purchase requisition process, and have the ability to offer discounts and rebates.
Step 4: Choose the Right Software After research and evaluation of the relevant solutions, an executive can finally decide on source-to-pay solution that is capable of meeting their companies requirements. During this step, leader must evaluate the scalability and stability of software package and make decision on whether it is the best choice for their organization.
Step 5: Implement the Solution Once leader selects the right solution and allows purchasing managers to configure the solution to meet the organizations’ requirements and preferences, they can reconcile the necessary changes to enhance compliance and system optimization. This may include building contracts, setting up preferred suppliers, selecting payment methods, and mapping spend areas.
Step 6: Train the Organization It is important to train the team on the different features and functionality of source-to-pay software. During this step, organizations should focus on teaching the basics of the solution, in addition to producing meaningful purchase reports and properly onboarding suppliers.
Step 7: Monitor, Analyze, and AdaptFinally, an executive leader should continuously monitor and analyze the source-to-pay process to parallel the adjustments made to the system. This includes evaluating the success of the process before and after the implementation of the system, understanding and billing the financial savings, and making any needed changes to the procurement process and supplier relationships.
Implementing source-to-pay software requires an extensive understanding of companies current process, detailed research on available solutions, and continuous monitoring and adaptation of the system and process. But with the right solution, an executive leader can make an informed decision on how to maximize the effectiveness of their current strategies, while achieving the benefits of an end-to-end purchasing platform.
