Using Source-To-Pay Solutions To Improve Financial Performance
WEB BASED PURCHASING
There are numerous ways to enhance the financial performance of business; however, investing in source-to-pay (S2P) solution is one of the most effective and cost-efficient ways to secure and streamline your organizations purchasing and financial risk management processes.
A S2P solution is tool that streamlines the procure-to-pay cycle and active relationship management. It enables businesses to measure savings, compliance risks, and financial actionable insights in real-time. It is comprehensive, secure and integrated solution for the entire procurement and accounts payable process, from order placement to payments. It typically includes suite of applications such as e-Procurement, e-Invoicing, and contract management, that connect departments and stakeholders to create simplified and automated process.
With the help of S2P solution, organizations are able to identify cost savings opportunities, strengthen corporate governance, streamline their invoice payments and expedite their accounts payable processes which can help to reduce financial risk, enhance the quality of business decisions and improve the overall financial performance of the organization.
This guide outlines the steps and tools required to implement S2P solution and its associated benefits to improve financial performance.
Step 1: Assess Your Current SystemBefore you can begin the process of implementing S2P solution, it is important to assess your current system and identify areas for improvement. This assessment should look at processes, transparency, and efficiency when it comes to recurrent costs and the approval and finance approval cycle.
It is also important to acknowledge any gaps in the existing system. Some common goals of S2P implementations are improved efficiency in the procurement cycle, reduction of non-compliance risks and operating costs, enhanced security in financial transactions, and improved visibility into the full procurement lifecycle from one end to the other.
Step 2: Identify Automation OpportunitiesThe next step in the process is to identify automation opportunities. There are two core elements of automation; automated content capture and workflow automation. Automated content capture can be used to automate the scanning, recognize, and file relevant information (purchase orders, invoices, and contracts, etc.). Automated workflow can be used to streamline the approval process and provide visibility into the entire purchasing cycle with real-time analytics and monitoring.
During this stage you should also consider whether manual processes need to be automated or integrated into the S2P platform. This could include any existing business process such as order approvals, electronic billing and payments, contracts and supplier management.
Step 3: Choose VendorAfter researching automation opportunities, the next step is to choose suitable vendor. When selecting vendor, it is important to focus on the key capabilities of the software, such as its ability to offer: enhanced security, compliance and risk management, advanced analytics, increased visibility into the procurement cycle and payment automation. Additionally, it is important to consider how the vendor?s software integrates with other systems, its scalability, if mobile functionality is available, and how quickly it can be implemented.
Step 4: Implement the SolutionOnce the vendor is chosen, the next step is to implement the S2P solution. Implementation often includes the deployment of the software, as well as managing user accounts and conducting training. Additionally, vendor-provided services may include onboarding assistance, adoption support, and data migration which can help to ensure successful implementation.
Step 5: Set-up the systemThe last step is to set-up the system. This typically involves configuring the settings and parameters specific to your business. This may include setting up systems for managing user accounts, accounts payable processes, online invoicing, and contracts.
Conclusion S2P solutions provide essential tools and resources, resulting in greater operational efficiency, improved financial performance and reduced risks. With greater guidance and transparency over the procurement process, the cost-savings resulting from S2P solution will be far beyond the cost of the software and will continue to yield returns over the long-term.
Implementing S2P solution requires time and investment upfront but will benefit any organization in the long run as it istreamlines and automates the entire process. From tracking past purchases and compliance risks to automated accounts payable processes and improved budgetary management, S2P solutions are the key to unlocking financial performance in any organization.
