Sourcing For A Source-To-Pay Solution
E-SOURCING PLATFORM
Searching for the appropriate source-to-pay solution for an organization can be daunting process, with variety of needs, features, and benefits to consider. Fortunately, an e-sourcing platform can make the task of managing the sourcing and purchasing of goods much easier. E-sourcing platforms are an attractive option for organizations considering automation of the vendors procurement process.
This guide provides executives working in the finance departments of their organizations with straightforward overview of how to use an e-sourcing platform as source-to-pay solution. It covers the initial setup requirements and the necessary steps to simplifying procurement processes, including running sourcing events and managing the required documents and data.
What is an E-sourcing Platform?
An e-sourcing platform is digital system for streamlining the procurement process of an organization. It enables those in charge of sourcing to identify the best suppliers and vendors who fit their needs. It automates mundane tasks like creating an initial data set and defining the relevant filters, leaving executives free to focus on the functional parts of the process. What’s more, e-sourcing platforms provide real-time insights and analytics, which allows for tailored and accurate decision-making.
What Makes an E-sourcing Platform an Ideal Source-To-Pay Solution?
Recognizing the intricate nature of the source-to-pay (STP) process, an e-sourcing solution allows product purchasers to move quickly and accurately through the process, while simultaneously reducing manual effort. Executives working in the finance department can utilize an e-sourcing platform to accelerate their evaluation of vendors and reduce supplier onboarding times.
E-sourcing platforms are robust and comprehensive, allowing organizations to customize it to fit their particular needs. This platform offers an array of options, including providing timeline of activities that tracks the process as it progresses. The platform also makes it easy to access and download documents, while allowing vendors to access documents from anywhere.
Executives can take advantage of the platform?s policy-driven architecture, which allows users to use their own policies for document approvals. They can also ensure documents are received with the minimum of manual effort and risk by integrating the platform into existing business processes and systems. Lastly, the platform’s integrated modules for expense management and payments allows executives to manage budgets and track payments.
How to Start Using An E-Sourcing Platform
The following are the key steps to take when implementing an e-sourcing platform as source-to-pay solution:
1. Initial Setup The first step is to set up the platform, which involves selecting relevant components, such as contract management, sourcing, and payment modules. Executives should establish their core policies, define control points, and integrate the platform with the organizations existing systems and processes.
2. Create Source List Once the platform is configured, executives should create source list consisting of the suppliers and vendors they would like to source from. By evaluating the available options and setting parameters regarding categories, location, and quality, executives can quickly create an market poll of sourced suppliers.
3. Define Evaluation Criteria Next, executives should define the criteria that suppliers must meet to be approved. This may include cost, quality, reliability, delivery times and performance. Executives can use the e-sourcing platform to automate the evaluation process for assessing potential suppliers.
4. Configure Requests Once the criteria have been established, executives should use the platform to set up formal request for quotation. This request should include the established evaluation criteria and associated processes for considering the response from vendors.
5. Request Submissions The e-sourcing platform allows executives to manage the submission of requests and responses from vendors. The platform’s self-service capability allows vendors to access and Respond to requests quickly, allowing executives to rapidly compile adequate supplier responses.
6. Evaluation and Final Selection It is essential to assess the vendor responses in timely manner. An e-sourcing platform allows executives to leverage automated tools to compare suppliers and make the selection process easier. This process should also include running auctions, so as to obtain the best vendor values. The platform can also be used to track final selections and keep records of the decisions taken.
7. Contract Negotiations An e-sourcing platform provides executives with tools to assist in contract negotiation, including integrated support for e-signatures and document templates for common document types.
8. Activity Management and Collaboration An e-sourcing platform streamlines the management of activities related to the sourcing and purchasing process, including tracking, payments, and document exchange. The platform also facilitates collaboration with other departments and stakeholders by allowing them to access real-time data and insights.
9. Expense Management Finally, executives should use the platform to track expenses and monitor payments. This includes managing payment requests and tracking payments with ease.
Conclusion
An e-sourcing platform is an ideal source-to-pay solution for executives looking to streamline the procurement process. It combines the best of automation and technology with the flexibility to customize the process, offering the ultimate tool for achieving accurate and frictionless procurement. By following this guide, an executive can get started using an e-sourcing platform as source-to-pay solution quickly. This will allow them to reduce the manual effort involved in managing vendors and suppliers and reap the benefits in cost savings and stronger partnerships.
