Supplier Risk Management with a Source-to-Pay Software: a Step-by-Step Guide for Executives

As the head of a company?s financial division, you understand the importance of monitoring, assessing and managing supplier risks. From fluctuating market forces to fluctuating costs from suppliers, getting the help you need to track, manage and mitigate the risks is essential, which is why you?re considering a source-to-pay software solution. In this guide, you?ll learn about the steps to consider when finding and implementing a source-to-pay software solution for supplier risk management.

Step One: Research. Consider which source-to-pay solutions are built with supplier risk management capabilities that fit best with your organizational needs. Take a close look at their respective market position, customer reviews and pricing plans so that you can find one that meets your requirements and budget. You should also find out what other companies in your industry or related industries are using. Doing research up front helps significantly when selecting a supplier risk management solution.

Step Two: Evaluate. Once you?ve narrowed down your options, carefully research each solution and evaluate how they hold up in day-to-day use. Comprehensive solutions should be equipped with a range of risk management capabilities such as risk scoring, due diligence automation and data governance. While evaluating a source-to-pay software, make sure that it aligns with your existing sourcing process. Additionally, consider user feedback since it will provide invaluable insight into how people interact with the system.

Step Three: Analyze. During the evaluation process it?s important to assess the source-to-pay software?s scalability and flexibility. Inquire what tools and capabilities can be tailored to fit your specific risk management needs. Examine the features and capabilities of the solution to ensure that it can scale with your company as your business grows.

Step Four: Test. Once you?ve picked a supplier risk management solution, the next step is to test it. Request a sample version of the solution so that you can see how it works and how user-friendly it really is. You should also provide sample data sets so that you can analyze how well the solution can integrate with existing systems and processes. Additionally, look into the solution?s security protocol to make sure that it will protect your confidential data.

Step Five: Implement. Once your testing and analysis are complete, it?s time to implement the supplier risk management solution. It?s best to start in a pilot setting and slowly roll out the solution across the organization. Involve key stakeholders in the roll-out of the solution to ensure that the most pressing supplier risk management needs are addressed first. Take your time and make sure that the solution is well integrated with existing systems and processes in order to achieve optimal results.

Step Six: Monitor. Even after implementation of the supplier risk management solution, the job isn?t done. Regular monitoring is essential to ensure that the solution is fulfilling its purpose. Make sure that data is correctly logged, processed and tracked. Periodically assess how well the solution is adhering to its objectives and adjust it as needed.

Finding and implementing a supplier risk management solution with a source-to-pay software doesn?t have to be a daunting process. Following the steps outlined above will help to ensure that you select the best solution for your needs, have a smooth implementation and achieve the desired outcome. Investing time up front will prove invaluable when managing your supplier risks.