Playbook for Effectively Leverage Supplier Performance Management Software

The first thing to do is to develop an understanding of the business needs and the objectives the company has for supplier performance management. Executives should evaluate the current performance levels of the organization and take an inventory of the capabilities, if any, that currently exist. While conducting an analysis, managers should consider their own requirements, the needs of stakeholders and other groups, potential threats and risk associated with third-party vendors, and any compliance requirements in the organization.

Step 2: Research Software Options Once a business understands its supplier performance management needs, the next step is to research software solutions that are available on the market. Executives can review websites, industry literature, and consult with peers to get an idea of the types of solutions that meet their needs. Additionally, they should carefully consider the features and capabilities of the software, potential industry and vendor certifications, support services, and overall customer feedback.

Step 3: Select A Vendor The next step is to select a vendor. Executives should evaluate and compare multiple vendor proposals and review any software contracts (or license agreements) in detail. During this assessment, executives should examine the product, customer reviews, pricing, implementation process, customer service and product support. It is also important to consider the technology and implementation capabilities that the vendor has in place, scalability, and the overall track record of the vendor.

Step 4: Monitoring & Evaluation Once the S2P solution is in place, executives should implement a monitoring and evaluation process to ensure that the goals and objectives of the project are being met. They should document any implementation issues or bug fixes that the vendor must address. Executives should also perform regular checks to ensure that the intended goals are met, such as validating that supplier performance is improved and that any associated costly errant behavior is addressed in a timely fashion.

Conclusion The effective utilization of supplier performance management software can have a transformative effect on an organization’s source-to-pay process. Executives should take the necessary steps to evaluate, select, and implement the best S2P solution for their business goals and objectives. With the right S2P solution, an organization can increase visibility into the activities of suppliers, strengthen relationships, and gain greater value out of the S2P process.