How C-Suite Can Get Started with Source-to-Pay Procurement

Source-to-pay programs, or S2P, allow companies to oversee the entire procurement process from one unified platform. These solutions provide a centralized point of access for purchasing records and communication between users, suppliers, and stakeholders. By leveraging S2P services, a business can save time and money, mitigate risk, and efficiently manage all procurement processes. In addition, companies can monitor supplier performance, ensure compliance with applicable regulations, and properly evaluate and track levels of supplier quality.

To promote efficient implementation of an S2P solution in their organization, a Chief Financial Officer (CFO) should first comprehend the value of using a source-to-pay platform. Awkward expense and payment policies, redundant procurement processes, the lack of inventory visibility, and poor collaboration between departments can all be addressed in a great measure through the adoption of an S2P solution. CFOs should also be aware of the impact of S2P programs on their team’s ability to control cash flow, cost per unit, and overall productivity.

1. Identify the Need

The first step is to identify a need in the organization that an S2P solution may be able to solve. This should include recognizing the areas that require change, inefficiencies that exist, and departments that need to be further integrated. Once factors like the company’s size, demand management processes, and supplier relationships have been considered and documented, the CFO can proceed to the need assessment phase.

2. Develop S2P Readiness Plan

This involves breaking down the tasks and allocation of employees required to make the transition to an S2P system successful. The plan should include detailed milestones, a timeline for each phase of the project, and determine the role each person will play in the process. It should also take into account regulatory, legal, and market considerations.

3. Select a Source-to-Pay Solution

Now that the probabilities and readiness plan have been established, the CFO should initiatively begin the process of finding the right S2P solution. It is essential to thoroughly evaluate the features and credentials of each provider and determine which solution will best meet the organization’s main goals and objectives.

4. Create a Procurement Rollout Schedule

The CFO should create a timeline detailing the specific software features, users, and suppliers that need to be handled in the S2P system. This will allow the CFO to plan ahead, set expectations, and begin familiarizing with the new software.

5. Train & Educate Employees

To ensure smooth transition of the new S2P platform, it is important to adequately train and educate employees on the implementation of the new system and its inherent benefits. This may also include familiarizing users with the changes in the system and helping them adjust to the new marketplace.

6. Evaluate Success

Finally, at the end of the transition process, it is important for the CFO to evaluate the success of the implementation by analyzing the impact the S2P platform has had on processes, costs, time efficiency, and other factors related to the company’s operations. This can be done by collecting data from the team, evaluating the outcome of supplier collaborations, and monitoring the success the S2P platform has had in assisting cash flow management, cost savings, and other benefits.

Implementing a source-to-pay system comes at little cost yet yields great rewards. An effective S2P program provides better control over procurement processes, while saving time and money concurrently. As with any new system, however, adopting an S2P solution requires careful planning and execution. By following the steps outlined above, CFOs can prepare, adapt, and benefit from this modern procurement platform.