Source-To-Pay Solution: A Step-By-Step Guide For The C-Suite

CLM TOOL

Efficiently managing source-to-pay (S2P) processes is essential for any organization looking to maximize business performance and success. From capturing global spending visibility to streamlining data accuracy, S2P solutions provide powerful tools to help organizations optimize finances. As such, learning how to use these tools to coordinate and manage accounts payable (AP) processes is an important step that C-Suite executives should take in order to maximize their S2P solution.

Step 1: Set Strategic Targets

The success of any S2P solution begins with clear, data-driven objectives. Establish the strategic targets you wish to reach and create measurable KPIs, such as reducing invoice processing costs or reducing lost businesses days.

Step 2: Manage Users Roles

The implementation of an S2P solution should be well organized in advance, with users and roles being assigned based on needs. An internal audit of role-specific privileges can ensure proper access and support for each individual?s role.

Step 3: Analyze Change Readiness

In order to guarantee the successful implementation of new S2P solution, analyze your companies change readiness and manage any resistance to change. Prepare comprehensive strategy to engage and educate all stakeholders in order to ensure organizational support from the very beginning.

Step 4: Define Your Process

Prior to the introduction of any new S2P solution, it is paramount to define the exact process for which the solution will be used, e.g., monitoring discrepancies, collecting and normalizing data, matching invoices and contracts, etc. Tailor the process to the specific needs of the organization before further integration.

Step 5: Establish the Necessary Connectivity

Ensure your system has the necessary connections with 3-rd party applications, such as payment gateways, to guarantee automated payment of invoices. These connections increase the probability of real-time capture and quick payments.

Step 6: Improve Pricing Efficiency

Introducing your new S2P solution will improve the management of contracts and help organizations accurately negotiate prices with suppliers. Cost savings can be improved through enhanced discounts or automated validations of price variances.

Step 7: Automate AP Processes

Once the S2P solution is integrated into the organization, it is time to fully automated payment processes and enhance collaboration with suppliers through 3-way matching and electronic payments. Automation eliminates the need for manual AP tasks, which in turn prevents errors, increases factivity and reduces processing costs.

Step 8: Monitor Report Analyze

Organizations can monitor performance and compliance of their S2P using integrated dashboards and BI tools. Measuring KPIs is one of the best ways to monitor the success of an S2P system and review the results against the previously established targets.

Conclusion

An S2P solution provides C-Suite executive with the opportunity to save time and money while ensuring effective management of payments and invoices. It is essential to put in place reliable S2P solution and to follow the above steps in order to maximize its effectiveness and ROI.