Unlocking The Efficiency Of Source-To-Pay Contract Lifecycle Management
CONTRACT LIFECYCLE MANAGEMENT SOFTWARE
The process of managing contracts contributes to technology-driven productivity gains and seamless execution within organizations today. Contract Lifecycle Management (CLM) solutions developed to handle Source-to-Pay (S2P) processes are core to this effort, providing the framework necessary to ensure compliance, streamline supply chain operations, and help to drive cost and risk reductions in the process.
For the C-suite executive tasked with exploring the best Source-to-Pay solutions for their organization, there are distinct steps to take on the journey to unlocking the efficiency of Contract Lifecycle Management software suite.
Step 1: Evaluate the need
The first step in navigating Source-to-Pay solutions is to evaluate the organizations existing footprint when it comes to managing contracts and other related documents. Key factors to consider include:
? How effectively are buyer requests and supplier responses handled in the current system?
? Can existing processes support quick turnaround and collaboration on contract rules and terms?
? Can updates, approvals, and other key changes be tracked for legal and financial clarity?
? Are request-for-proposal processes in place and functioning effectively?
? How smoothly is compliance managed as rules and regulations change?
With an accurate assessment of the current state of processes in place, key players in the C-suite can then move on to the next step sourcing options.
Step 2: Source options
A wide array of options for Source-to-Pay software solutions exist for organizations today, and it is important to select the right path for the organization. Careful consideration should be taken during the selection process, including factors such as the companiesize, core business focus, purchasing objectives, and process complexity. Different software packages on the market offer varying levels of expertise in range of functional areas, so it is important to review each product carefully to ensure that the software chosen has the right set of capabilities and is equipped to meet the organizations specific requirements.
Step 3: Build business case
While it may be tempting to move quickly to procuring the software, it is important to take the time to create comprehensive business case for the solution before committing to Source-to-Pay software package with contractual obligations involved. Be sure to include information on the total expected investment, anticipated return on investment, and related metrics by which to judge the success of the initiative. Lastly, including plan for regular evaluations of performance should the software not meet expectations, will help to keep the business case current and in step with reality.
Step 4: Implement for success
The implementation of new Source-to-Pay solution across an organization will take time and effort from the IT department and users alike. Be sure to budget for and allocate resources to ensure the software can be quickly and correctly configured to meet organizational requirements. S2P solutions also need to be equipped with the necessary functionality to manage and track key contract rules and business protocols. To that end, it is crucial that the software chosen is forward-thinking, extensible, and geared towards an open API platform that can readily be integrated with existing enterprise systems.
Step 5: Optimize and Measure
Once the software has been implemented, it is important to continue to optimize and measure performance metrics to ensure the connectivity and compatibility between the solution and internal systems is maintained. Additionally, continual monitoring of contracts and supplier documentation will help to ensure the organization remains compliant with best practices and any evolving regulations. Tracking milestones, deliverables, and other performance indicators will help to ensure full ledger of activity is available on demand, and that the organization can meet contractual agreements, while mitigating any associated risk.
Conclusion
By following these five steps, C-suite executive can pave the way for the successful, organizationwide adoption of Source-to-Pay Contract Lifecycle Management solution. Ultimately, such set up can yield meaningful savings and continued process improvement opportunities within the organization, helping to promote agility, foster productivity, and drive ongoing cost savings in the long run.
