Getting Sourced Strategically Through Source-To-Pay Solutions

Strategic Sourcing Process

Strategic sourcing is becoming one of the most essential aspects of procurement, due to its ability to optimize current buying operations and introduce heightened level of efficiency. Executives in the finance department are seeking of ways to both reduce costs and unlock new sources of value. That’s why more and more organizations are turning to powerful Source-to-Pay (S2P) solutions to create competitive edge.

These powerful solutions provide an end-to-end suite of capabilities from strategic sourcing to purchase order, invoice imaging and processing, and digital contract and document management. The greater the ability of adoption of these solutions, the higher the leverage organizations can have in the global marketplace–benefiting both the vendor and customer.

For executives in finance departments, here is step-by-step guide on how to take full advantage of S2P software:

1. Outline Your Strategic Sourcing Objectives: The first and foremost step is to outline your organizations objectives. What are your desired outcomes? Take into account the current market realities and your companies needs. By understanding the goals ahead of time, the process is more methodical and organized.

2. Research Available S2P Solutions: Once the specific goals are determined, the practical decisions can begin–which S2P solution should be employed? Consider the differentiators of each solution, functionality and customization options, cost, scalability, user-friendliness and technical support. They should all be taken into consideration when choosing the right one.

3. Ask Questions: Remember to ask questions and any other information that would help you feel secure and comfortable during the process. Questions may include, but not limited to: Is it user-friendly and automated to the fullest extent? Is it highly customizable? Does the solution offer direct connection with customers and vendors? What are the associated costs? And most paramount–what, if any, technical support is provided?

4. Draft an Implementation Plan Launch the Solution: Draft an implementation plan and timeline before choosing S2P solution. This will include discussions and action plans for stakeholders. After implementation is completed, organizations must ensure that employeeare trained on the new supplier engagement process, and the chosen system is activated with all necessary roles, users and suppliers.

5. Monitor Analyze: Once all is set up, monitor the S2P system closely on an ongoing basis and analyze your organizations results regularly. This will provide deep insights into the success of the solution and allow organizations to tweak where needed.

Overall, the power of strategic sourcing is vast, and the right S2P software can help organizations move mountains. By digitally connecting different procurement functions in single platform, valuable time and resources can be saved while ensuring suppliers and vendors understand the organizations needs. Executives in the finance departmentshould take these steps into account when selecting an ideal S2P solution and strive for the simplicity, efficiency, and value it provides.