Source-To-Pay Solutions: Controling Spend
WHAT IS SOURCING AND PROCUREMENT
When it comes to achieving an efficient and profitable sourcing and procurement process, utilizing source-to-pay (S2P) software is one of the most effective ways to consolidate the management of suppliers, reduce cost, and improve visibility and control over your spend. However, not all S2P solutions are equal, and making sure that you understand the features and tools that are necessary for your unique organization can help make the selection process substantially easier. By utilizing this step-by-step guide, executives can compare and contrast S2P solutions and make an educated decision about which option is best for their organization.
Step 1: Analyze Your Current Procurement ProcessesBefore you begin looking for an S2P solution, you need to take the time to analyze and study your existing procurement processes. Understanding how your procurement team currently sources, contracts, and approves suppliers and purchases can help you determine the level of automation and integration that are necessary for successful transition to an S2P system. Take into account your existing processes and the extent to which they are manual, how they are currently working, and which sources and data are utilized most.
Step 2: Understand Your organizations Individually RequirementsBased on the review of your current procurement processes, you should then be able to identify the features and system capabilities that are crucial for your organization. From there, you can then begin to look for potential S2P solution that aligns well with your unique requirements. Look for system with features such as point-of-sale integration, real-time spend analytics and performance indicators, requisition templates, and comprehensive supplier management tools. It is also important to consider features such as custom invoice and supplier management and easy integration with other internal systems.
Step 3: Compare Software OptionsOnce you have identified the features necessary for your organization, it is time to review the range of potential software options. Determine the software?s best-in-class integrations, its user-friendliness, the different levels of deployment and scalability the software offers, and more. If possible, it is best to evaluate some of the software systems yourself, as S2P solutions vary dramatically across different providers.
Step 4: Test, Test, and Test AgainBefore committing to particular S2P system, it is important to consider robust testing process. Demo versions and free trial periods are an important part of the selection process, and they can provide an excellent opportunity to evaluate the software and its performance in more depth. With test versions, you can get better feel for the user experience, the breadth of feature sets, and the support and training teams of the individual software services.
Step 5: Assess the Total Cost of OwnershipFinally, be sure to crunch the numbers and compare total cost of ownership across different systems. In addition to the initial cost of the software, be sure to include figures for deployment, training costs, maintenance, upgrades, and more. Comparing these ?hidden? costs of different S2P solutions can help you find the most cost-effective system for your organization.
By following these steps, executives can make an informed purchasing decision when it comes to selecting an S2P solution and ensure that the software they choose is right for their organization. With the right source-to-pay solution, organizations can improve their procurement processes, streamline their workflow, and drive more value.
