How Businesses Benefit from an Integrated S2P Software Solution
- Source to Pay
Source-to-Pay software or, simply put, S2P is an integrated suite of applications developed to take care of and manage each and every process within the procurement function. A typical S2P solution can effectively manage purchasing activities that range from spend analysis, e-auctions, purchase requisitions, sourcing events, invoice and payment processing and vendor relations. A well-implemented S2P solution can significantly improve a company’s procurement function and achieve cost savings to help businesses achieve a great return on investment.
It makes an organization’s life really easy, right? Everyone should have one by now! Well, things are not that simple, and a lot of thought and consideration is needed before making such a decision.
You could jump toward the end of this article if you want to know more about the benefits of a S2P solution, however, we believe it’s important to draw attention to these three aspects first.
How much could you be saving with an integrated S2P solution? Get an estimate with the ROI Self-assessment Checklist.
Things To Consider Before Investing in a S2P Solution
The Business Case
Implementing a S2P solution is a major change for any organization and it should never be “an impulse purchase”. The success of a S2P software implementation project relies greatly on the business case it follows. A good business case should take into consideration the value the S2P solution could create, the project timeline, the overall business strategy and it should be based on solid data.
The Procurement Strategy
Companies should think about how a new S2P solution will integrate into their procurement strategy, and most importantly, how it will change their procurement strategy and procurement processes going forward. Is the decision sustainable for the business and the way it operates?
The Right Solution for Your Business
One of the most difficult decisions to make when implementing a S2P software solution, is deciding on which solution to choose. There are dozens of vendors within a very innovative market. The truth is, there is no “one solution fits all” recipe for success. That is why it’s important to do a thorough market research beforehand and choose the vendor that offers the most comprehensive solution suite for your company’s needs.
Benefits of an Integrated S2P Solution
Having accounted for these 3 aspects let’s have a look at the value an S2P software solution can bring into your business.
Having all your procurement processes managed through one single platform increases visibility over the whole buying process. Users can access information easier and have access to real-time data. Data flow is also simplified as it circulates through the different modules of a single platform, which is the S2P suite.
Better Supplier Management
The supplier management process is simplified both for organizations and for their suppliers as the whole buying process from initial tender to invoice payment is handled through the same platform. Organizations have all their supplier data in one place, making it easy to access supplier information and manage supplier relationships and performance.
A S2P solution ensures purchase policies that make it easier for users to purchase products and services from a preferred list of suppliers. The system allows the creation supplier scorecards so that you can select the best suppliers for the products/services you want to buy.
Supplier onboarding and catalogue creation become easier and companies are less prone to error due to lack of supplier information that can appear when using multiple systems.
Improved Compliance and Control
With an integrated S2P solution organizations can accurately assess a supplier’s compliance with its procurement standards and the organization’s code of conduct. Contract compliance tracking becomes more visible, making it harder to miss important information about suppliers that could hurt the company’s reputation.
An integrated solution provides better control over your data, and helps avoid data duplication and data inconsistency due to use of multiple systems with different processes.
Ease of Use
One of the main struggles when implementing a new technology platform is ensuring that the technology is adopted by a large number of users. An important factor here is to have a friendly user interface, consistent across the whole system.
Since all the purchasing processes go through a single system, users need to make an effort to start using the system. However, compared to using different systems for different operations, with an integrated solution, users only need to get used to one new system that applies the same rules throughout the whole suite. This benefit generally leads to an increased adoption rate.
Improved Spend Analysis
A S2P integrated software solution can provide information across all stages of the buying process. It allows you to perform suite-wide analytics, thus collecting spend, sourcing, contracting, supplier, invoice and payment data in a form that can easily be transformed into actionable insights. An integrated solution is better equipped to provide more in-depth data that can be acted upon immediately.
A better understanding of your data helps you optimize your organization’s spending and meet your procurement goals.
Once you have a better understanding of where your money is going, you can optimize your company’s spending to meet organizational goals, reduce costs and improve efficiency.
We believe an integrated S2P solution helps organizations become more efficient with their procurement processes. It helps organizations get the best deals from their suppliers while ensuring compliance with regulatory guidelines. An integrated S2P solution provides visible synergy across the procurement function, whether referring to supplier collaboration, visibility and contract compliance, use of data or availability of information.
About the Author
This article contributed by Andrada Sabo, Content Marketing Manager at Xoomworks Procurement Consultancy