How To Maximize Your Spend Management With A Source-To-Pay Solution

Supplier Control

When it comes to maximizing the return on your indirect spend, there are few better solutions than source-to-pay solution. Such Softwaresystems offer comprehensive view of suppliers and their services, provide in-depth analytics regarding supplier performance, and enable enterprise-wide control over the procurement process?all at the click of button.

As C-Suite executive responsible for maximizing the efficiency of indirect spend, the importance of such technology cannot be underestimated. Source-to-Pay solutions can alleviate the hassle of managing challenging suppliers, provide visibility of purchase data, and spread the load of compliance-related activities?all while simultaneously controlling supplier risk.

For the purposes of this guide, let?s assume you are finance executive looking to procure the optimal source-to-pay solution on the market today.

Step 1: Research the Different Source-to-Pay Solution ProvidersExecutives need to research the various vendors and decide on which one to buy from. It is paramount to select vendor whose software provides sufficient scalability, flexibility, ergonomic design, and includes customizable features. With variety of sources-to-pay solutions on the market today, it can take some time to find the provider that fits the individual needs of an enterprise. Be sure to look at available reviews from past customers, vendor?s cost structure, implementation time frame, and support services before making the selection.

Step 2: Draft Requests For Proposals (RFPs)Once an enterprise has established which source-to-pay solution they want to purchase, they need to send out requests for proposals (RFP?s) to relevant vendors. These RFPs or tenders should be detailed and outline precisely the requirements expected. These parameters include the particular features and functionality which the vendor’s solution must provide, support services, communication protocols, and the timeline for implementation.

Step 3: Review Bids and RequestsThe decision-makers should review the bids and the requests of potential solutions. Logically they should eliminate any source-to-pay solutions that do not meet the expectations set in the RFPs. Once the evaluation of the vendors is complete, the decision-makers should make an informed decision as to which vendor to collaborate with.

Step 4: Negotiate and Finalize ContractsWith chosen system, C-suite executives should engage in comprehensive negotiations to establish contract. The agreement should include proprietary pricing and comprehensive service-level agreement. it ishould also consider implementation fees and areas of professional service charges. Once price is agreed and an implementation timeline is outlined, the C-suite should sign the vendor contract.

Step 5: Design Supplier On-boarding ProcessOnce the source-to-pay solution is purchased and the contract is in place, the enterprise should develop process for onboarding suppliers into the new system. Executives should update the existing supplier approval process to ensure all onboarded suppliers meet the enterprise?s quality assurance regulations and security standards. Furthermore, those responsible should conduct in-depth training of all staff involved in the supplier onboarding process.

Step 6: Planning the Implementation and TrainingThe process of planning the implementation of the source-to-pay solution is dependent upon the scale and complexity of the enterprise and its suppliers. That is why it is vital for the company to allocate project manager who can coordinate and organize the implementation in timely manner. Additionally, proper planning and training should be conducted by the vendor to ensure the users’ comfort with the technology.

Step 7: Go Live and ReviewOnce the source-to-pay solution is implemented and all staff are trained, it is time to go-live. This involves performing final check of system functionality, testing key components of the software, and ensuring user acceptance is at expected levels. After the system is in production, senior executives should request feedback from all team members, review supplier performance and accuracy of data, as well as rectifying any discrepancies or errors.

ConclusionUsing source-to-pay solution to manage indirect spend can revolutionize how organizations purchase goods and services, while simultaneously driving financial savings. All C-Suite executives responsible for overseeing spend should consider source-to-pay solution to enable total visibility and control of the procurement process. This guide has outlined the seven steps necessary for selecting, negotiating and implementing system, providing useful resource for executives looking to make the most of their indirect spend.