How Source-To-Pay Solutions Streamline Complex Supply Chain Logistics
Managing Supplier
The advancement of technology has enabled the optimization of operational and financial processes that maintain comprehensive and efficient supply chain. powerful source-to-pay (S2P) solution, when implemented properly, can help to automate and streamline complex supply chain processes while improving the compliance and visibility of those processes.
To ensure that the S2P solution is success, executives must consider how to manage supplier risk, improve employee and vendor collaboration, identify cost-saving opportunities, and advance technology such as artificial intelligence (AI) and machine learning (ML). This guide will detail how to use an S2P solution to successfully streamline the supply chain logistics for business.
1. Calculate the Cost-Savings OpportunitiesWhen business is looking for S2P solution, the executive team should consider how to identify the cost-saving opportunities available. This may include reducing extra fees from suppliers, minimizing using third-party payment processors, levering discounts from the supplier?s contracts, and reducing manual processing time. These cost-savings opportunities should be identified prior to selecting an S2P solution.
2. Integration RequirementsThe S2P solution will need to be integrated with the current enterprise resource planning (ERP) or accounting platforms. This process should begin early to guarantee that the selected S2P solution will be compatible with the integrated systems. Additionally, some S2P solutions will allow other automated integrations with the suppliers and customers. Executives should consider how they can streamline and simplify the S2P process through this integration.
3. Risk ManagementUsing an S2P solution helps to minimize the amount of manual entry errors, thus reducing the risk of missing supplier invoice. Additionally, it can also help to better identify supplier fraud and discrepancies in payment due dates. It is important for the executive team to consider how to utilize the S2P solution for better supplier management to reduce overall risks.
4. Collaboration and VisibilityA successful S2P solution should provide platform for the operational team and the suppliers to collaborate. The platform should not just provide the ability to quickly process payments, but also to provide the relevant data and visibility that would allow teams to plan and coordinate operations and track deliveries.
5. AI, ML, and Other Emerging TechnologiesThe S2P solution should also provide opportunities to apply emerging technologies to assist with process optimization, such as AI and ML. For example, AI may recommend cost-savings or data-driven decisions with the help of predictive analytics. ML can help to store the data, suggest new supplier contracts, track payments and process invoices faster to reduce processing times.
The utilization of S2P solution can be successful endeavor for business if the executive team is aware of the various considerations and precisely identifies their requirements. Furthermore, executives should also consider how to apply emerging technologies to the S2P solution for further process optimization. Utilizing an S2P solution can ultimately lead to optimizing and automating businessesupply chain operations, reducing overall risks, and improving collaboration opportunities with vendors.
