Potential Of Source-To-Pay Solutions For Erfx
E RFX
In recent times, organizations across the globe have embraced the utility of source-to-pay solution for eRFX (electronic Request for Proposal Process). However, exerting the utmost efficiency out of the system calls for comprehensive understanding of the whole concept. The goal of this article is to provide the executive from the finance department with cogent overview of the system’s fundamentals, followed by step-by-guide to running the eRFX process.
Source-to-pay solutions have been devised to streamline the total cost of ownership for procurement along with enhancing cost optimization for any business enterprise. These solutions encompass different aspects, such as how to reduce day, authorise purchase and plan in advance. Several research works have revealed the integral role played by these systems in helping the C-level executives to make informed financial decisions.
However, the crux of the issue is to understand in greater detail how the source-to-pay solutions function with regards to eRFX. In simple terms, the user must first initiate the eRFX process by submitting the necessary requirements and selecting the appropriate vendors. This can be done by researching the market and analysing the pricing and other vendor-related parameters. After that, the business can implement the request in sophisticated manner.
However, it ishould be noted that the aforementioned process takes place without any physical paperwork necessary. Throughout the entire span, from submitting the requirements to authorizing the purchase, all the communication is digital (i.e. through emails and the internet). Moreover, the source-to-pay solutions allow for various features such as tracking order progress, controlling the stock of goods and monitoring progress in real-time.
Based on the astute analyses of these source-to-pay solutions and their impeccable utility for eRFX, the following is comprehensive step-by-step guide on how to use the system:
Step 1: Research and Select Research the market and select the best vendor to provide the appropriate goods or services. Make sure to consider pricing and other relevant parameters.
Step 2: Submit Requirements Submit the necessary requirements to initiate the eRFX process. This step can be completed by filling out an online form.
Step 3: Get Approval Next, the C-level executives must obtain the necessary approval to initiate the eRFX process.
Step 4: Contact Vendors Contact the vendors and inform them of the requirements specified in Step 2. It must also be stated that any questions related to the requirements may be posed.
Step 5: Negotiate Pricing The next step involves negotiation of pricing. During this step, the C-level executives must ensure that the best deal is achieved in terms of cost.
Step 6: Authorise the Purchase Once the pricing is negotiated and the requirements are fulfilled, the C-level executives must authorize the purchase.
Step 7: Track Order Progress The source-to-pay solution allows the user to track order progress in real-time. This is done by continual monitoring of the status of the purchase order.
Step 8: Manage Inventory The user can further manage the inventory levels by keeping track of the stocks. This is done with the help of an automated tool that provides an updated report on the remaining inventory.
Finally, with the following steps, the C-level executives can effectively harness the potential of source-to-pay solutions for eRFX. It is also worth noting that any questions or queries related to the implementation and usage of such system can be taken to customer service centers or customer support teams of the respective organization. Nonetheless, the above steps are foolproof and are sure to bring out the desired results.
