Gaining Insight For Actionable Procurement Analytics With Source-To-Pay Solutions
Procurement Benchmarking Report
Uncovering opportunities for cost and risk optimization within supply chains can be daunting task, especially when your organization heavily relies upon wide range of stakeholders and transactions. The use of Source-to-Pay (STP) solutions is becoming increasingly critical as globalized corporates seek to balance cost efficiency with enhanced agility. Procurement benchmarking reports can provide high-level insights to enable actionable decision-making, based on an organizations real-time data.
Analyzing source-to-pay data can provide both qualitative and quantitative solutions to identify cost savings and risk minimization opportunities. By leveraging technology such as artificial intelligence to sift through transaction data and then plot it against industry benchmarks and supplier performance, timely insights can be gathered to facilitate the procurement process and boost organizational profitability.
This article will outline step-by-step guide to enable C-Suite executives to best utilize STP solutions for actionable procurement analytics.
Step 1: Prepare datasets. The preparation of data from past purchase orders, contracts, invoices, and so on is the first stage to proceed with benchmarks report. Use STP solutions for intelligent data extraction and preprocessing, designed to extract the right datasets and arrange them ready for consumption.
Step 2: Identify procurement benchmarks. Source-to-pay solutions should be capable of monitoring supplier performance and total spend as it builds benchmark index. benchmark index is an index which provides information on average performance in certain category within certain industry.
Step 3: Analyze real-time data. Use the results of the benchmark index to analyze real-time data captured by the STP solution. This process should allow organizations to identify any procurement activities which are outside of the industry standard.
Step 4: Establish actionable analytics. By identifying activities or practices which are outside of an ?industry average?, companies can quickly ascertain where actionable analytics are required. STP solutions are designed to monitor and detect business processes needing improvement, and can be benchmarked on recurring basis for up-to-date insights.
Step 5: Generate the report. Finally, with the data collected and the opportunities for actionable procurement analytics identified, it is time to generate the benchmark report and present it to the C-Suite. STP solutions should be able to present results clearly and concisely in an easy to-understand output.
In conclusion, Source-to-Pay solutions (STP) is powerful and cost-effective tool that can provide actionable insights specific to an organizations procurement processes. By leveraging technology such as artificial intelligence to identify opportunities for cost and risk optimization, executives can generate procurement analytics reports with greater accuracy and speed, improving an organizations operational performance.
